How are dividends taxed in Egypt?
Dividends distributed by companies carry a 10% tax, or 5% on shares listed on the Egyptian Exchange, with no deduction for costs.
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Detailed Explanation
## The rule
Article 56 bis of the Income Tax Law (Law 199 of 2020) taxes dividends at 10%, or 5% on shares listed on the Egyptian Exchange (EGX). Dividends between resident legal persons are outside the base. Simplified-regime businesses are exempt.
## Undistributed profit
Profits of the permanent establishment of a non-resident company that are not distributed within 60 days after the financial year can be treated as distributed under that article. That rule does not apply to other companies.
## How AccountsOS helps
Finn records the dividend against retained earnings and shows the 10% tax.
Source: https://eta.gov.eg/sites/default/files/2024-03/law_no.199-2020.pdf
Real-World Examples
Owner dividend
An EGP 100,000 dividend carries EGP 10,000 of tax.
Common Mistakes to Avoid
- Recording a dividend as an expense
Frequently Asked Questions
Does a holding company pay it?
Dividends between resident companies are outside the base.
Practical Tips
- Agree dividends in writing before paying
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