Comparative Analysis of Corporate Taxation Across Egypt, UAE, and Saudi Arabia

With the rapid expansion of cross-border investments across Egypt and the GCC region... This comparative study provides an analysis of the most prominent features of the tax systems in Egypt, the United Arab Emirates, and the Kingdom of Saudi Arabia, based on the latest applicable legislation. 1. Corporate Income Tax (CIT) Egypt:• Standard Rate: A 22.5% tax is levied on the net profits of legal entities (corporations). • Exceptions: Higher rates apply to certain strategic entities, such as the Egyptian General Petroleum Corporation (EGPC) and the Suez Canal Authority, reaching up to 40% or 40.55%. United Arab Emirates:• Standard Rate: A federal corporate tax of 9% is imposed on taxable income exceeding AED 375,000. • Exemptions and Other Rates: Profits up to AED 375,000 are subject to a 0% rate to support startups and small businesses. A 15% rate applies to large multinational corporations under the Global Minimum Tax rules (BEPS Pillar 2). Free Zones enjoy a 0% rate on qualified income. Kingdom of Saudi Arabia:• Foreign Companies and Non-Saudis: Subject to an income tax of 20% on adjusted net profits. • Saudi Companies and GCC Citizens: Not subject to corporate income tax; instead, a Zakat of 2.5% is levied on the Zakat base. • Oil Sector: Hydrocarbon and oil production activities are subject to specific tax rates ranging between 50% and 85%. 2. Value Added Tax (VAT) Egypt:• Standard Rate: Placed at 14% on most goods and services. • Reduced Rates: A 5% rate applies to certain machinery and equipment essential for production. • Mandatory Registration Threshold: Annual supplies exceeding EGP 500,000. United Arab Emirates:• Standard Rate: Standing at 5%, applied broadly with some services exempted or zero-rated (such as exports, healthcare, and education). • Mandatory Registration Threshold: Annual supplies or revenues exceeding AED 375,000. Kingdom of Saudi Arabia:• Standard Rate: Placed at 15% (increased from 5% to 15% in July 2020). • Mandatory Registration Threshold: Annual supplies exceeding SAR 375,000. 3. Personal Income Tax (PIT) Egypt:• A progressive tax is applied to individual income and salaries, with maximum brackets reaching up to 27.5%, alongside exemptions for the lowest income brackets. United Arab Emirates:• There is no personal income tax on individual income, salaries, or wages. Kingdom of Saudi Arabia:• There is no personal income tax on individual income, salaries, or wages for citizens and residents. 4. Digital Obligations and Tax Compliance Egypt: Strict implementation of the E-Invoicing system and digital returns via the Egyptian Tax Authority to link data and tighten control over deductions and additions. United Arab Emirates: Tax files and compliance are managed through the EmaraTax portal under the Federal Tax Authority. Kingdom of Saudi Arabia: Implementation of the Fatoora system for mandatory e-invoicing and direct integration with the Zakat, Tax and Customs Authority (ZATCA).