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Do I have to pay any taxes here in Cairo???please help

Last activity 15 April 2009 by Egypt Tax Consultant

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VGM1210

To Whom It may concern,

Hello I am Spanish but married to a British National. We both work and live in Egypt since August 2008. We are working in a British School in Nasr City.

Let me explain my situation first; we have been living here for 9 months now and our school has not arranged the work permit for us yet- even when that is part of the contract we signed- so we are still on tourist visas. Apart form that, the school bursar has been taking the taxes from our salaries every month since we started,the 10%, even when we are not supposed to be legally in the country.
We just found out that UK citizens should not be paying taxes at all if they have been living here less than a year-Is it that true?- so my husband and some other UK+Irland National colleagues have received the refund for the taxes paid until April 2009, but not me or the rest of us ( Jamaican, Spanish and Belgian).

Can anyone give any onformation about that??? or suggest any website where we can check that out??
Do you think that it concerns also to me as I am married to a British National?
Does anyone know by any chance where is the Labor Council here in Cairo?

All the information you can provide us will be more than welcome.

Thanks guys

Egypt Tax Consultant

Hello,

First of all i would like to welcome you in Egypt.


Please note that according to Egyptian tax laws and regulations any expatriate working inside Egypt should be subject to tax in Egypt (Egyptian Tax is territorial base). This is applicable even if the expatriate is legally (i.e. have work permit) or illegally working in Egypt.

Furthermore , please note that any expat working inside Egypt for a period not exceeding the aggregate of 183 days during A CALENDAR YEAR is subject to flat 10% salary tax without any deductions or exemptions. However, in case he/she spends more than 183 days during the same calendar year, he/she will be regarded as resident for tax purposes and will be treated as Egyptian National and subject to salary tax at progressive rates up to 20% with some exemptions (the approximate effective salary tax rate is 18%).

It is however to be noted that Egypt has singed Double Tax Avoidance Treaties (DTA) with several Countries regulating the tax treatment for companies and individuals in both Countries, noting that Egypt has a signed DTA with Spain.

However, as per the Egypt-Spain DTA treaty, and as far as you are paid out of an Egyptian entity (the school), you should be subject to tax in Egypt by the above mentioned rules and rates.

I hope i have clarified the issue.

If you need any further assistance please call me at 0122278997 or write me an email at egypttaxconsultant@gmail.com

Best regards,

Hany Ahmed

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