Egypt - Special considerations for short-term assignments

Egypt - Special considerations for short-term

Taxation of international executives

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For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.

Residency rules

Are there special residency considerations for short-term assignments? 

Employees are required to obtain a residency permit and obtain a work permit.

Payroll considerations

Are there special payroll considerations for short-term assignments?

No. However, non-resident employees who spend less than 183 days are taxed on Egyptian source income only while residents who spend more than 183 days are taxed on their total income earned from Egypt or outside Egypt so long as Egypt is the center of their commercial or industrial or professional activities. 

According to the declared tax segments which are:

  • From EGP 0 to EGP 6,500 is 0 %
  • From EGP 6,501 to EGP 30000 is 10 %
  • From EGP 30001 to EGP 45000 is 15 %
  • From EGP 45001 to EGP 200,000 is 20 %
  • Over EGP 200,000 is 22.5 %

Taxable income

What income will be taxed during short-term assignments?

Non-resident employees who spend less than 183 days are taxed on Egyptian source income only while residents who spend more than 183 days are taxed on their total income earned from Egypt or outside Egypt so long as Egypt is the center of their commercial or industrial or professional activities. 

Additional considerations

Are there any additional considerations that should be considered before initiating a short-term assignment in Egypt?

No.

© 2016 KPMG Hazem Hassan Public Accountants & Consultants, an Egyptian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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