Tax Experts Group provides all services for establishments to include the necessary follow-ups according to commercial and investment laws. We highly recommend that foreigners establish their companies under the investment laws with us for the following reasons:
1-Oversees and follows-up on support documentation at the appropriate governmental departments.
2-Signifies validity as a company to conduct international business.
3-Offers visa assistance to its clients.
4-Initiates easy bank loans.
5-Provides foreigners with the capability to own 100% of their companies, real estate, and cars.
There is a belief by foreign residents in Egypt that the taxes imposed is based on the business but taxes in Egypt is based on the person himself and what he owns according to the classification below:
1-general taxes (on net income)
2-real estate taxes (property to include land, buildings, apartments, and villas)
3-sales tax (revenue or sales)
Contracting and Foreigners
It is recommended for all foreign residents when conducting business in Egypt to use a legal lawyer for contracting services and a chartered accountant for tax purposes.
Important Tax Question
Q: What type of company is recommended?
A: MR. Ashraf: Limited companies according to investment laws or joint-stock companies.
Q: What amount of tax should I pay?
A: MR. Ashraf: The tax rate now is 25% but will drop to 22.5% when the new law goes into effect.. One is taxed on the net profit which is the revenue minus the expenses.
Q: I want to buy another company in Hurghada?
A: MR. Ashraf: We recommend to ask a chartered accountant in order to shows you the company position, who has the right to sell, conditions of sale as well as the company’s tax liability in the last few years.
Q: In what form of invoice is to be issued?
A:MR. Ashraf: All payments made must include the company name and address, tax file number, date the tax registered, the serial bill number.
Q: In what form are payments made in purchases?
A:MR. Ashraf: Same as previously stated.
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