Guide to Taxation for Oil and Gas in Egypt

The Guide to Taxation for Oil and Gas in Egypt provides an in-depth overview of tax requirements and regulatory structures affecting the oil and gas industry in Egypt.

Key Topics Include:

1. 1. Corporate Taxation for Oil and Gas in Egypt: Companies face a high tax rate of 40.55%, with VAT exemptions for raw oil and natural resources.

1. 2. Production Sharing Agreements (PSAs): These agreements outline cost recovery and profit-sharing terms between Egypt and foreign operators, which impact taxation on oil and gas operations.

1. 3. Excise Taxes on Oil and Gas Products: Specific petroleum products are subject to excise (schedule) taxes, managed by the Egyptian General Petroleum Corporation.

1. 4. Withholding Tax Requirements: Foreign service payments are taxed at 20%, with reductions possible under certain double-tax treaties.

1. 5. Royalties in Egyptian Oil and Gas: A 10% royalty on production applies before other taxes as a government fee for resource access.

This guide is essential for understanding taxation in Egypt’s oil and gas sector, covering critical aspects of corporate tax, PSAs, VAT, and royalties to ensure compliance in Egypt’s complex tax environment.

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