Egypt

Business Environment

Business practices

Closed hours and days: Banks: from 8:30 to 14:00 from Sunday to Thursday.
Public administration: from 8:30 to 15:00 from Sunday to Thursday.
Businesses: from 8:30 to 15:00 from Sunday to Thursday.

Public holidays

Christmas (Old calendarists)	January 7
Sinai Liberation day	April 25
Labor Day	May 1
Revolution Day	July 23
Armed Forces Day	October 6
Cham El Nessim (Spring Festival)	The first Monday following Orthodox Easter
Aid El Fitr (Ramadan Feast)	3 days public holidays marking the end of Ramadan
Aid el Adha (Sacrifice Feast)	4 days public holidays, 70 days after the end of Ramadan
Islamic New Year	Variable Date
Prophet Mohamed's Birthday	Variable Date
Orthodox Easter Monday	Variable Date

Compensation day: There is no compensation.

Periods when companies usually close

Aid el Fitr (Ramadan Feast)	3 days at the end of Ramadan
Aid el Adha (Sacrifice Feast)	4 days, 70 days after the end of Ramadan
Summer vacation	During the month of August, business is particularly slow

Standards

National standards organizations: Egyptian Organization for Standards & Quality (EOS)
National Institute of Standards
Integration in the international standards network: Egypt recognizes the ISO standard. It also accepts the European standards, British, Japanese and American standards. When there is no national standard for a product, Egypt normally uses the ISO standard, the IEC or the codex alimentarius.
Classification of standards: EGP then a number / year.
Online consultation of standards: The Egyptian standards can be accessed from the EOS website on payment.
Certification organizations: Egyptian Organization for Standardization & Quality
For further information, visit the Egyptian Accreditation Council's website.

Legal framework

Independence of justice: The Egyptian legal system is considered as the most independent system of the Arab world. However, the activities related to politics and national security are usually handled by special courts.
Equal treatment of nationals and foreigners: Foreign nationals can face certain difficulties during the course of their legal proceedings.
The language of justice: Egyptian Arabic.
Having recourse to an interpreter: It is possible to have recourse to an interpreter.
Sources of the law and legal similarities: The primary source of the law is the Constitution of 1971. The legal system is highly influenced by the French law. It also has influences from the common law. In fact, Sharia is crucial for the questions of civil status.
Consulting national laws online: Egypt laws, paid site collating the Egyptian laws
The main Egyptian laws on the Egyptian government's website

Intellectual Property

National organizations: Patents are protected by the Patents' Office which reports to the Education Department. Designs and trademarks are protected respectively by the Office of Designs and Models and Office of Trademarks which are departments of the Trade Register, an administrative service which comes under the Ministry of Trade and Industry.
It is possible to obtain licenses for using patents and trademarks, but the agreements to use patents which involve payments outside the country must be authorized by the General Authority for Investment (GAFI). As for copyrights, they are handled by authors' societies.
Regional organizations: No regional regulation bodies for intellectual property.
International membership: Member of the WIPO
Signatory to the Paris Convention
Membership to TRIPS

National regulation and international agreements

Type of property	Law	Validity	International agreements signed
Patent	Law No. 82 of 2002 and the official orders for its application taken respectively in 2003 (no. 1366) and in 2005 (no. 497)	20 years as from the date of request submission
Trademark	Law no. 82 of 2002	initial period of 10 years which can be extended indefinitely for similar periods	Trademark law treaty Nice agreement concerning the International classification of goods and Services for the Purposes of the registration of Marks Protocol relating to the Madrid Agreement concerning the International Registration of Marks
Design	Law no. 82 of 2002	10 year protection which can be renewed for 5 years.
Copyright	Law no. 82 of 2002	- For literary works and software programs: the lifetime of the author + 50 years - For registered works: 50 years from the registration date.	Berne convention for the protection of Literary and Artistic Works WIPO performances and Phonograms treaty
Industrial Models	Law on intellectual property no. 82	10 years validity renewable for 5 years.

Tax rates

Consumption taxes

Nature of the tax

A "General Sales Tax (GST)" is applied.

Tax rate

Taxes usually range from 5 to 25% for products and 5 to 10% for services. Various taxes at 15%, 50%, 75%, 100% and 200% exist as well as amounts in absolute value per quantity or weight.
Basic food products, natural gas, books, magazines and goods for scientific, educative and cultural use are tax-exempted.

Reduced tax rate

-5% for products

-10% for services

Other consumption taxes

Excise duty is also collected on alcoholic drinks and coffee. An additional duty is collected on brandy, cognac, gin and whisky.

Corporate taxes

Tax rate

Corporate Income Tax	:	20%
For oil and gas companies	:	40.55%

Capital gains taxation

Long-term capital gains are subject to tax on the companies at the standard rate (20%). Profits from movable capital are not taxable.

Main allowable deductions and tax credit

Setting up in special economic zones entitles the company to tax benefits. They are only taxed at 1% of their profits or operations.

Other corporate taxes

A tax on real-estate assets has been put in place in June 2008. It is up to 10% of the rental value whether the property is rented out or not. If the property is rented, the rental value is the effective value of rent collected by the owner if it is higher than 7% of the purchase value. The owner is exempted from landed property if the value of the property is less than or equal to 500,000 EGP.

Individual taxes

Tax rate

- 0 to 5,000 EGP	:	0%
- 5 000 to 20,000 EGP	:	10%
- 20,000 to 40,000 EGP	:	15%
- more than 40,000 EGP	:	20%

Allowable deductions and tax credit

None

Special expatriate tax regime

None

Double taxation treaties

Countries with whom a double taxation treaty have been signed: Refer the list on the Ministry of Transport's website
Whithholding taxes
Bilateral agreement

Sources of fiscal information

Tax Authorities: Egyptian Sales Tax Department's website
Other domestic resources: Egypt Tax Society's website

Accounting rules

Tax year: The fiscal year starts on January 1st and ends on December 31st the same year.
Accounting standards: The accounting obligations result from the Companies Act no. 159 of 1981 and Financial Market and Money Market Act no. 95 of 1992. The Accounting Plan (the Egyptian accounting standards) is close to international accounting standards.
Accounting regulation bodies: Capital Market Authority
Accounting reports: According to the law, all companies must present to the shareholders during their annual meeting an audit report, a balance sheet, an income statement and cash flow statement.
Publication: After its initial public offering, the company must present every three months a detailed report of its business (business progress and results).
Each year, a progress report and a report of the accounts (before certification) must be sent to the Capital Market Authority one month after the fiscal year end at the latest. The certified accounts cited on the Official Schedule 1 must be published in two reference journals of which at least one must be in the Arabic language.
Professional accountancy bodies: List of chartered accountants
Certification and auditing: All the accounts and reports are likely to be verified by government authorities such as the Tax Department (Internal Revenue) or the corporate department of the Department of Economy and Industry.
Accounting news: Economics and Accounting News website