A company is considered to be tax resident in Egypt if its effective place of management is in Egypt.
In addition, foreign corporations and partnerships are classified as tax residents of Egypt if they meet one of the following conditions:
- The entity is established according to the Egyptian law.
- The government or a public authority owns more than 50% of the capital of the entity.
Egyptian corporations are subject to corporate profits tax on their profits derived from Egypt, as well as on profits derived from abroad, unless the foreign activities are performed through a permanent establishment located abroad.
Foreign companies performing activities through a permanent establishment in Egypt are subject to tax only on their profits derived from Egypt.
Foreign tax credit: The foreign tax paid by a resident company on its profits earned abroad is deductible from the tax payable in Egypt; however, losses incurred abroad are not deductible.