Any Egyptian entity has a liability to withhold tax that is applied on any payments above EGP 300 from a local contractor or supplier of goods or services at the time of payment. The rates of WHT applies to local payments for any local services and supplies with different percentages as follows:

• 1% on contracting and supplying services;
• 3% on all types of services;
• 5% on commissions fees; and
• 5% on professional fees. These payments of WHT are prepayments of the providers’/suppliers’ liability to CIT.

On the other hand, Egyptian entity which makes payments of interests, royalties or for services to non-residents (whether individual or corporate) is subject to 20% WHT at the time of payment. This can only be reduced in case of a relevant double tax treaty signed between Egypt and the relevant country. Also, there is an exemption on certain items such as: Transport or freight; Shipping and handling; Insurance; Training; Participation in exhibitions and conferences; Listing fees in stock market; Hotel accommodations; and Direct advertising and marketing expenses.

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