Tax Expert in Egypt

While a tax lawyer fights battles in court, a Tax Expert in Egypt wins the war before it begins. The focus here is on strategy, planning, and optimization. It involves navigating the complex web of Egyptian tax laws to ensure maximum efficiency and full compliance.

Strategic Tax Planning vs. Tax Evasion

There is a clear legal distinction between tax avoidance (legal planning) and tax evasion (illegal). A true tax expert helps you utilize legitimate tools provided by the law to reduce your tax burden.

This includes:

• Structuring Salaries: optimizing the breakdown of payroll to utilize exempt allowances under the Income Tax Law.
• Expense Deductibility: Ensuring that all corporate expenses are documented correctly to meet the strict criteria for tax deductibility, thus reducing the taxable profit base.
• Depreciation Schedules: Utilizing accelerated depreciation where applicable to defer tax liabilities.

International Taxation and Treaties

For multinational companies operating in Egypt, the landscape is even more complex. A tax expert must have deep knowledge of:

Double Taxation Treaties (DTTs)

Egypt has signed DTTs with many countries. These treaties determine where specific types of income (dividends, royalties, interest) are taxed. An expert ensures you are not paying tax twice on the same income and helps you apply for reduced withholding tax rates available under these treaties. See our International Law Services.

Transfer Pricing (TP)

This is currently the hottest topic in Egyptian taxation. Related-party transactions (e.g., a subsidiary in Cairo buying goods from its parent company in Dubai) must be priced at "arm's length."

A tax expert assists in:

• Preparing the Master File and Local File as required by TP regulations.
• Benchmarking transactions against market standards to avoid audits and penalties.

Sector-Specific Expertise

Different industries in Egypt face different tax realities.

• Construction: Dealing with long-term contracts and VAT on progress payments.
• E-Commerce: Navigating the new digital services tax and VAT on digital goods.
• Free Zones: Understanding the limitations and benefits of operating within a Free Zone (exemption from corporate tax vs. applicability of other fees).