Egypt has amended the Income Tax Law No. 91 of 2005 through Law No. 151 of 2026, introducing changes to the taxation of real estate disposals and securities, dividend withholding, interest deductibility and small-business taxation. The law was issued on 28 July 2026 and took effect on 29 July 2026, the day after its publication.
Real estate disposal tax
Under Article 43, a flat 2.5% tax applies to the total gross value of real estate or land disposals without deducting costs. The provision covers built and unbuilt property inside and outside city limits, excluding villages.
The tax applies to sales, inheritance disposals, usufruct rights, leases exceeding 50 years, and gifts or donations. Exemptions cover gifts and donations to ascendants, spouses, descendants, government bodies, local administrative units and public benefit projects.
Forced administrative or judicial sales and expropriations for public utility are also exempt. In-kind share contributions to joint-stock companies qualify for exemption where the resulting shares are held for at least 5 years.
The tax must be paid within 60 days of the transaction to avoid delay interest charges.
Capital gains and securities
The amendments make capital gains from non-listed shares and securities in Egypt or abroad subject to tax. Non-residents disposing of unlisted shares must calculate and remit the tax within 60 days of the transaction.
Capital gains from shares listed on the Egyptian Stock Exchange (EGX) remain exempt unless the disposal results in the company being delisted. Non-residents are also exempt from capital gains tax on Treasury Bills (T-Bills).
Taxable gains are calculated after taking account of the sale price, acquisition cost and brokerage fees. Where securities are sold at fair value after a holding period of at least 3 years, the acquisition cost may be adjusted upwards by the Central Bank of Egypt (CBE) discount rate for each year of the holding period.
Dividends and interest deductions
Article 50 exempts dividends received by a resident parent or holding company from a subsidiary where the parent holds at least 25% of the subsidiary’s capital or voting rights and holds, or commits to holding, the stake for at least 2 years.
Article 52 retains a 2:1 debt-to-equity ratio limit for interest deductions by legal entities, based on Egyptian Accounting Standards. The ceiling rises to 4:1 for companies implementing designated national infrastructure projects approved by Cabinet decree, provided loans are obtained from non-related parties and investment in national projects accounts for at least 25% of total investment.
Banks, insurance firms and licensed financing companies are excluded from these limits.
Under Article 56 bis, dividends distributed to non-resident individuals or resident and non-resident corporate entities are subject to 10% withholding tax without expense deductions. The rate is 5% for companies listed on the EGX, while free share distributions are exempt.
Profits of permanent establishments are deemed distributed 60 days after the end of their fiscal year. Interest on non-related loans with a minimum five-year tenure used to finance national infrastructure projects is exempt from withholding tax.
Bad debts and SME taxation
Article 28 allows bad debts to be written off after 12 months from the due date where serious recovery measures have been taken, including obtaining a performance order or court judgment or filing claims in bankruptcy.
For debts of up to EGP 10,000 per debtor, formal court procedures are not required, provided total written-off bad debts do not exceed 1% of the total debtors’ balance at the end of the tax year.
The law also introduced simplified tax treatment for unresolved tax years covering 2022 through March 2025 for businesses with annual turnover below EGP 10 million. Turnover between EGP 1 million and EGP 2 million is taxed at 0.5%, between EGP 2 million and EGP 3 million at 0.75%, and between EGP 3 million and EGP 10 million at 1.0%.
For businesses with turnover below EGP 1 million, a fixed annual tax applies at EGP 1,000 for turnover below EGP 250,000, EGP 2,500 for turnover from EGP 250,000 to EGP 500,000, and EGP 5,000 for turnover from EGP 500,000 to EGP 1 million.
EGX IPO incentive and tax waiver
Article 3 provides companies conducting a public IPO on the EGX with a 15% discount on income tax due for three years from the listing date. Eligibility requires market capitalisation of at least EGP 50 billion at the offering and an offered portion of at least 20% of total shares or a value of at least EGP 10 billion.
The incentive can be granted once during a company’s lifetime and cannot be combined with other statutory tax incentives.
The amendments also recognise the Takaful Contribution paid under the Universal Health Insurance Law (Law No. 2 of 2018) as a tax-deductible expense. In addition, unpaid income tax on capital gains from listed shares incurred between June 16, 2023, and the effective date of Law No. 151 of 2026 has been waived.
The amendments therefore apply across several areas of Egypt’s income tax framework, including property transactions, investment income, corporate financing and small-business taxation. Law No. 151 of 2026 has applied from 29 July 2026, with specific payment, holding-period and eligibility requirements applying to the respective measures.
