Withholding Tax (WHT) & Refunds

Introduction Withholding Tax (WHT) refunds in Egypt are often seen as complex, time-consuming, and uncertain.Many multinational companies either give up or fail to submit complete, compliant documentation leading to rejections, delays, or reduced refund amounts.However, a well-structured approach can transform the process from a challenging obligation into a successful recovery of significant cash. This case […]

Introduction Base Erosion and Profit Shifting (BEPS) Action 6 also known as the Treaty Abuse Action represents one of the most significant global tax reforms in the last decade.Its purpose is simple but far-reaching: Stop multinationals from accessing treaty benefits when they are not entitled to them. Before BEPS, many companies used treaty-shopping structures, conduit entities,

Introduction Double Tax Treaties (DTTs) play a critical role in determining whether cross-border payments are subject to Withholding Tax (WHT). Among the most important treaty articles for multinational groups operating in Egypt and MENA are: Article 12 – Royalties Article 15 – Income from Employment These two articles define who has the taxation right, how

Introduction Egypt’s Income Tax Law and Executive Regulations impose withholding tax (WHT) on a wide range of cross-border payments. However, one of the most complex and frequently misunderstood areas relates to the classification and taxation of: Software payments Royalty and licensing fees Technical and consultancy services Misclassifying these payments can lead to over-withholding, disputes with

Introduction Withholding Tax (WHT) is one of the most financially sensitive components in service agreements, licensing contracts, software arrangements, and cross-border commercial relationships.A single clause often overlooked can determine: Who bears the tax cost Whether treaty benefits apply How much the recipient actually receives Whether the contract complies with Egyptian tax rules Misinterpreting WHT clauses

Introduction Withholding Tax (WHT) refunds in Egypt can offer significant financial relief for foreign companies and multinationals receiving cross-border payments.But despite eligibility under Double Tax Treaties (DTTs), many refund applications are rejected by the Egyptian Tax Authority (ETA) due to documentation gaps, misinterpretation of treaty rules, or inconsistencies in the refund file. Understanding why refund

Introduction Withholding Tax (WHT) is one of the most common taxes applied in Egypt on payments made to foreign entities for services, royalties, interest, and other cross-border transactions. Many multinationals end up overpaying WHT due to incorrect rates, missing treaty benefits, or misclassification of services and the only way to correct this is by filing