Egypt Highlights:
- An EoR (Employer of Record) package is the most efficient and effective way to deploy local and foreign employees in Egypt.
- 1WB acts as an EoR ensuring full compliance with country’s regulations.
- The whole deployment process for foreigners takes about 3 weeks whereas for locals within 1 week.
- Handling payroll processing, immigration and taxes compliantly, swiftly and cost efficient.
- Income tax is deducted at source, taking into account the following band rates:
| Gross Income (Egypt pounds) | Tax Rate % |
|---|---|
| 0 – 8.000 EGP | 0% |
| 8.001 – 30.000 EGP | 10% |
| 30.001 – 45.000 EGP | 15% |
| 45.001 – 200.000 EGP | 20% |
| >200.000 EGP | 22.5% |
| note that tax credit is applicable |
- Corporation tax is flat rate at 22.5%.
- Social security contributions, explain as follows:
| Employer | Max | Rate |
|---|---|---|
| Basic | 1,510 EGP | 26% |
| Variable | 4,040 EGP | 24% |
| Employee | Max | Rate |
|---|---|---|
| Basic | 1,510 EGP | 14% |
| Variable | 4,040 EGP | 11% |
- ER fund takes place.
- Ceilings for both employer and employee applies.
- Work permit - 1WB can sponsor work permits for foreign employees and the processing time is about 2 weeks.