Tax Consulting in Egypt: An Expats Guide

Delving into Egypt’s tax system can be as complex as deciphering ancient hieroglyphics for expats.

This indispensable guide shines a beacon on tax consulting in Egypt, offering a lifeline to those seeking to optimize their tax situations in a new cultural and legal landscape.

Whether you’re wrestling with income tax, property tax, or looking for investment advice, finding the right tax consultant is key to safeguarding your financial health abroad.

Let’s dive in!

What Is Tax Consulting?

A tax consultant advises and guides clients on tax-related matters.

They work with individuals and organizations to ensure they comply with tax laws and help minimize potential tax liability.

Tax consultants typically have a deep understanding of tax law and accounting principles.

This role might fit for detail-oriented, analytical individuals who enjoy working with numbers.

Many businesses engage tax consultants to assist with taxes. Organizations that employ tax consultants include accounting firms, law firms, banks, and real estate organizations.

These specialists can also maintain self-employment.

Why Is Using A Tax Advisor Or Consultant Important?

Expertise and Knowledge

Tax consultants are well-versed in the constantly evolving tax laws and regulations.

They undergo rigorous training and comprehensively understand tax codes, deductions, credits, and exemptions.

By leveraging their expertise, they can help you identify opportunities to minimize your tax liability legally.

Tax consultants can provide personalized advice tailored to your unique circumstances, whether you are an individual, a small business owner, or a corporation.

Tax Planning and Compliance

Effective tax planning is essential to optimize your financial situation.

Tax consultants can assess your financial position and develop strategies to reduce your tax burden.

They analyze your income, investments, and expenses to identify potential deductions, credits, and exemptions that may apply to your situation.

By staying abreast of the latest tax laws, consultants ensure you comply with all filing requirements and deadlines, minimizing the risk of penalties and audits.

Minimising Tax Liability

One of the primary goals of tax consultants is to minimize your tax liability while staying within the bounds of the law.

They employ various strategies such as structuring transactions, optimizing deductions, and utilizing tax-efficient investment vehicles.

Tax consultants can help you save money and increase your overall wealth by strategically planning your finances.

They can also advise on estate planning, retirement contributions, and charitable giving, enabling you to make informed decisions that align with your long-term financial goals.

Audit Assistance and Representation

Facing an audit from tax authorities can be a stressful experience. However, with a tax consultant’s support, you can confidently navigate the process.

Tax consultants are experienced in dealing with tax authorities and can guide responding to inquiries, organizing documentation, and representing you during the audit.

Their expertise ensures that you present a strong case while safeguarding your rights as a taxpayer.

Business Consulting

For businesses, tax consultants offer valuable insights beyond tax planning.

They can assist with structuring your business tax-efficiently, guiding you through mergers, acquisitions, and other complex transactions.

Tax consultants also provide financial analysis, helping you understand the tax implications of various business decisions.

With their expertise, you can optimize your business operations, enhance profitability, and stay compliant with tax laws applicable to your industry.

Who Is The Tax Expert In Egypt?

The tax expert is a certified legal accounting advisor who works independently, privately or within a government organization or certified accounting firm.

The tax expert has extensive experience in dealing with all tax fields and has a previous work experience of at least ten years. 

One of his most important features is to keep up to date with the latest regulations and amendments to the Tax Authority law.

What Are The Duties Of A Tax Expert?

The primary duty of a tax expert is to preserve the rights of both the taxpayer and the tax authority by following the provisions of the law, instructions and tax regulations.

He also plays a direct role in developing the tax performance of the citizens and an indirect role in the development of the state. 

You can understand this by knowing some of the tasks, which include:

  • Exempting the citizen from tax or reducing it to the maximum possible legally.
  • Informing taxpayers of their tax rights and the rights of the tax authority to protect them from tax evasion.
  • Educating the citizen and encouraging him to register for the tax and perform his duty towards the homeland.
  • Accurately calculate taxes for the taxpayer by calculating income tax and commercial profits.
  • Tax planning for modern companies and projects.
  • Accurately calculate value-added tax on goods and services, considering the exempted goods and services.
  • Help clients prepare tax returns accurately according to the provisions of the law.
  • Distinguishing between the types of tax imposed on the taxpayer and all the particular laws for each tax.
  • Protection of taxpayers from exposure to the provisions of the law and its penalties.
  • Calculation and optimization of corporate tax.
  • Legal representation of the citizen before the authorities and government agencies.
  • Providing tax advice to taxpayers to assist them in implementing the provisions of the law.
  • The General Tax Authority, the Ministry of Finance, and other bodies seek the assistance of a tax expert to discuss drafts of the law to avoid errors and distortions.
  • He also indirectly increases foreign investment and tax compliance, benefiting the state and the citizens.

Skills a Certified Tax Professional must possess

When hiring a tax consultant, you must ensure he has several skills that prove his professionalism. The skills of a successful tax expert include:

Significant scientific and professional experience: The tax expert must have practised the profession for at least ten years and have certificates proving that. 

It is also preferable to have scientific degrees such as a master’s or doctorate.

  1. Good reputation: The tax expert must have good moral character, integrity and credibility.
  1. Full awareness of Tax Reduction Strategies: A tax expert uses various techniques and methods to reduce personal and corporate tax.
  1. The skill of conducting accounting equations: The expert must have superior skills in carrying out various calculations.
  1. Accurate knowledge: A successful tax expert knows the value of every financial piece of information, no matter its size, so he must pay attention to every detail.
  1. Analytical skill: The tax expert must be able to analyze information and results and extract accurate and valuable reports on them.
  1. Time management skill: Every delay in submitting the return or paying the tax will expose the taxpayer to the penalties of the law, so the expert must have the skill of time management.
  1. Continuous skill development: The expert must stay abreast of the latest amendments in the corporate tax law, value-added tax, etc.
  1. Communication with clients: Continuous development of expert communication skills, both written and verbal, is preferred.

What Is The Role Of Tax Services In Reducing The Tax Burden On Companies And Individuals?

Accounting and tax offices and companies play an essential role in alleviating the tax burden on people and businesses, as they provide many tax services, Such as: 

Tax Advice

  • Preparing the annual or monthly tax return for sales tax.
  • Settled disputes and made settlements with the Tax Authority.
  • Preparing annual adjustments for tax on wages and salaries.  

Tax Planning

  • Follow-up of the daily tax activities.
  • Automation and electronic registration of tax tasks.
  • Executing the requests of tax authorities and coordinating work with the tax administration.  

Tax Audit Service:

  • Reviewing tax returns.
  • Tax agency service.
  • Ensure the integrity of the application of value-added tax in the company.
  • Submitting petitions and reconsideration of the calculated taxes.
  • Refund of the tax-exempt amount.  

Real Estate Tax Services:

  • Preparing tax returns for real estate.
  • Follow up on the collection process.
  • Submitting requests for tax payment.  

Dealing With The Electronic Tax Authority Website:

  • Preparing and submitting electronic reports.
  • Registration on the electronic invoice system.
  • Follow up on payment.  

What Are The Best Tax Advisors In Egypt?

Egyptian Certified Public Accountants

The Egyptian Certified Public Accountants office is the most significant accounting office in Egypt and the Arab countries. 

They continually strive for excellence in providing professional services at the fastest and lowest cost, keeping their client’s satisfaction in mind at every step.

The ECPA office has all the skills of tax and accounting work. 

Their consultants are available around the clock to provide the best tax services and advice. 

Egyptian Certified Public Accountants have achieved financial consulting for hundreds of companies with a 100% success rate.

Get started with Egyptian Certified Public Accountants 🔥

Hesham El Tohamy & Co

Hesham El Tohamy & Co. is a professional firm that provides its clients services in accounting, audit, and tax with advice to address the challenges and opportunities to maximize the benefits arising from their activities.

As a member of INNA GROUP (International Association of Independent Accounting Firms), they provide services that assess overall Chartered Accountants and Consulting.

Get started with Hesham El Tohamy & Co 🔥

Abdalla Adlan public accountants

Since 1995, Abdalla Adlan’s public accountants have provided audit, accounting, tax, payroll, forensic, and business consulting services.

Services they offer are:

  • Start-ups services
  • Financial audit & internal controls systems.
  • Accounting.
  • Market research & feasibility studies.
  • Business advisory.
  • Financial systems.
  • Tax service

Get started with Abdalla Adlan Public Accountants 🔥

Andersen Egypt

Andersen Egypt is your trusted partner in law, tax, and finance. We are rooted in global expertise and offer comprehensive solutions tailored to your unique needs. 

Navigating the complexities of the Egyptian landscape, their dedicated team ensures unparalleled service, compliance, and growth for your business.

Get started with Andersen Egypt 🔥

Abdallah Shalash & Co.

Abdallah Shalash & Co. is an independent audit and accounting firm based in Cairo, Egypt. Established in 1980, it specializes in accounting, auditing, taxing, and advisory services.

Get started with Abdallah Shalash & Co. 🔥

What Are The Tax Consulting Areas Of Expertise?

Tax consultants can concentrate their work on handling specific tax laws and regulations.

By specializing in a particular field, these professionals can become experts in the tax laws and regulations that apply to that sector.

Tax Analyst

A tax analyst researches tax laws and regulations, prepares tax returns and financial statements, and provides clients with tax planning and consulting services.

They must have strong analytical and research skills and a thorough understanding of tax laws and regulations.

Tax analysts typically work in public accounting firms, corporate tax departments, and government agencies.

Entry-level positions may involve preparing tax returns and financial statements, while senior positions may provide tax planning and consulting services.

A tax analyst typically reports to the head of the tax department.

SEC Reporting Consultant

The Securities and Exchange Commission (SEC) reporting consultants can use backgrounds in accounting and finance to help clients comply with reporting requirements.

They interpret SEC rules and regulations to communicate with clients and team members.

These niche accounting professionals work as employees or independent consultants in accounting firms, law offices, or corporate finance departments.

Responsibilities include filing SEC reports, reviewing SEC filings for accuracy and compliance, and advising on disclosure requirements and best practices.

An entry-level position for this career path may be a staff consultant, while a tenured consultant could advance to a managing consultant role.

Tax Analysts And SEC Reporting Consultants

Tax analysts and SEC reporting consultants analyze and prepare tax documents.

Each advises clients on tax law changes and potential business outcomes, but SEC reporting consultants also report disclosure requirements.

Both positions often advance professionally after becoming certified public accountants or obtaining master’s degrees in accounting or taxation.

What Types Of Taxation Does Egypt Have?

Income

Egypt taxes residents’ worldwide income at progressive rates ranging from 0% to 27.5%. (All amounts are given in EGP.) 

Non-residents are taxed at the same progressive rates as residents. However, unlike residents, non-residents are only taxed on their Egypt-source income. 

Additionally, residents and non-residents are entitled to an annual salary tax exemption of EGP 15,000.

It’s important to note that these tax rates came into effect starting 1 July 2023, with the introduction of the new bracket of 27.5%

Capital Gains

Capital gains generated from property sales are only taxed if the real estate was used in a trade or business (including a sole proprietorship). Otherwise, capital gains are not taxed.

Transfer Tax

A 2.5% transfer tax applies to selling any built real estate or land prepared for building. The value of the sale is assessed on the total disposal value of the property.

Stamp Tax

Egypt imposes a stamp tax on certain documents, such as:

  • Legal forms
  • Deeds
  • Banking transactions
  • Insurance premiums

The rate for this tax varies depending on the type of document. 

For example, the rate for banking transactions is 0.04%, while the rate for insurance premiums ranges from 0.08% to 10%.

Real Property Tax

All property in Egypt is subject to a real estate tax. 

The rate for this tax is 10% on the annual rental value after a 30% deduction for residential property or a 32% deduction for nonresidential property. 

Residential units with a rental value of less than 6,000 EGP are exempt.

Value-Added Tax

Egypt applies a value-added tax (VAT) to certain goods and services. 

The standard rate for this tax is 14%. Some goods and services are subject to a reduced rate of 5%

Others are exempted entirely.

Corporate Tax

Corporate income is taxed at a flat rate of 22.5%. This applies to the net taxable profits of the company. 

The only exception is oil exploitation companies, which are taxed at 40.55%.

Egyptian corporations are generally taxed on their worldwide income, while foreign companies operating in Egypt are only taxed on income derived from Egypt. 

What Should You Look For In A Tax Advisor?

Let’s face it: Taxes are as complicated as they are boring. If you’re having trouble sleeping at night, head to the IRS website and start reading. That’ll knock you out real quick.

But the excellent tax advisors are different from the rest of us. They live, eat and breathe this stuff.

They’re up-to-date on all the latest changes and trends happening in the Tax World to help you understand which tax laws, deductions, and credits affect you.

But looking for a tax pro goes beyond head knowledge. Here are eight essential qualities you should always look for in a tax advisor before you agree to trust them with your taxes:

1. They’re qualified and have the proper certifications.

When looking for a tax pro, you’ll want to work with someone who will give you quality advice. In other words, they know what the flip they’re doing!

When it comes to getting tax advice, find a pro who has one of these two certifications:

●   Enrolled Agent: An Enrolled Agent is a tax specialist for people looking for professional tax return preparation and tax advice.

 Plus, they’re licensed by the IRS to represent you if you’re being audited.

●   Certified Public Accountant (CPA): Certified Public Accountants specialize in tax preparation and planning but can also offer many other services to help you throughout the year.

This can start from bookkeeping to long-term financial planning.

If your tax situation is complicated, a CPA can help with advice on tax strategies based on your circumstances.

Enrolled Agents and CPAs both go through extensive training, testing and continuing education to maintain their credentials and stay up-to-date on tax laws and regulations so they can better serve you.

Someone with just a preparer tax identification number (PTIN) isn’t going to cut it.

 2. They’re available all year.

Nowadays, many part-time, fly-by-night tax preparers are popping up during tax season, only to disappear once they file your tax return, never to be heard from again.

Not even on a Christmas card or a magnetic calendar for your fridge.

As we said, things happen throughout the year that can significantly affect how you file your taxes for that tax year.

When life happens, having a reliable tax pro who will pick up the phone to answer your tax questions in September (not just January through April) can make a huge difference.

3. They understand your financial goals.

No matter where you are on the Baby Steps, it helps to have a tax advisor who’s on the same wavelength as you.

That means they take the time to learn about you, your family and your financial goals so they can give you tax advice that will drive you closer to reaching them.

Whether they’re helping you adjust your paycheck withholdings to pay off debt faster or helping you identify potential pros and cons of taking your side hustle to the next level.

A great tax advisor always looks for ways to help you move the ball down the field.

4. They make time to answer your tax questions.

When tax terms like deductions and itemized and adjusted gross income get thrown around, your head starts to flood with questions.

Don’t worry; that’s an entirely normal reaction.

Your tax advisor should always be ready to sit down with you and answer your questions. That’s what it means to have the heart of a teacher!

There’s a saying among tax pros that for every tax problem, there is a straightforward, uncomplicated and wrong solution. Good tax advisors know the correct answers!

If you’re asking questions and your tax advisor rolls their eyes or gives you some highbrow answer that leaves you more confused than you were before, it’s time to look for a new advisor.

5. They’re proactive in communicating with you.

You don’t just want somebody who puts a rubber stamp on your return and walks away. That’s just lazy.

It would help if you had a tax pro who would take the initiative and keep an eye out for things you might need to change for the upcoming year.

Did you get a big refund? No one wants to give the government an interest-free loan. Have you seen how they handle money?

A good tax pro will take the time to explain that your employer has been taking too much money out of your paycheck for taxes and show you how to fix it.

Or what if you got slapped with a big tax bill? Your pro should be able to explain why you had to cut a check to Uncle Sam and how you can avoid getting blindsided next year.

6. They can help you with small-business taxes.

If you have a small business or dream about starting one someday, it’s easy to forget what that means for your taxes.

But you’ll be glad you have a tax pro who has experience working with small-business owners and can help you navigate through small-business tax rates, estimated taxes and deductions you qualify for as a business owner.

7. They can help you with your taxes next year and the year after.

Having a tax advisor you can turn to year after year can save you from having to explain the same things repeatedly to a new random tax preparer every spring.

Who has time for that?

Besides, it helps to have a tax advisor who knows you and your tax situation well enough to give you solid advice and strategies to help you reduce your tax bill.

8. They can be trusted with sensitive information about your finances.

Working with a friend or relative on your taxes might be tempting, but do you want a family member to know how much you make, how big your mortgage is or even if you tithe to your church?

That could make Thanksgiving dinner awkward!

It would help to find a tax advisor you can trust with all the nuts and bolts of your financial situation.

Trust is the foundation of any strong relationship—including your relationship with your tax pro!

Conclusion

In the intricate world of Egyptian taxes, having a seasoned tax consultant by your side is invaluable.

This guide has illuminated the path to finding expert tax advice, empowering you to navigate the fiscal challenges and opportunities Egypt offers.

Remember, the right consultant doesn’t just help you comply with local laws—they enable you to thrive financially in your new environment. Here’s to fiscal wisdom and prosperity in your expat journey.

Fiscal flourishing!

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