Can I Claim Private and Personal Costs as a Business Expense in Egypt?
No. Costs of the owner's private life are not business costs. Keep them out of the company's books, or record them against the owner who benefited.
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What Egyptian Tax Authority (ETA) says
A cost must relate to the business activity. Private spending paid from the company account is recorded as owed by the owner or as a distribution, never as an expense. When an owner takes money or benefits from the company, it should be recorded as salary through payroll, as a dividend decided by the shareholders, or as an amount the owner owes the company. Each one has a different tax treatment, so agree which applies with your accountant. An ETA audit can look at every cost in the books. Private costs mixed in with business costs weaken the support for the genuine ones.
When you can claim
When you cannot claim
- Personal shopping
- School fees
- Private car costs
- Household bills
- Family holidays
- Personal insurance policies
- Gifts to family and friends
- Club memberships used for leisure
- Personal mobile phone plans with no business use
- Medical bills for the owner's family
- Private travel paid by the company
Good to know
Pro tip: Keep a separate personal account and card. If a cost is partly business and partly private, such as a phone plan, agree a fair business share with your accountant and apply it the same way every month. Settle any amount the owner owes the company before the year end, so the balance sheet is clean for the return.
Important: Paying private costs from the company account makes the books harder to defend in an ETA audit. If a personal cost was paid from the company account, tell Finn. It records it against the owner, not as an expense, and shows when it has been repaid. Under the simplified regime the business pays tax on turnover, but private costs should still be kept out of its books.
Related expenses
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AccountsOS automatically categorises expenses with Egyptian Tax Authority (ETA)-aware rules and tells you exactly what is claimable.
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