Restaurants taxes in Egypt

Running a successful restaurant in Egypt is more than just creating delicious dishes and providing excellent service. Understanding complex restaurant taxes is an important aspect of business management. However, it's essential to consult tax professionals or legal experts to receive the most up-to-date and accurate information about the circumstances, as tax laws and regulations can change over time.

So let us show you the main important taxes for restaurants in Egypt.

One of the primary taxes affecting the restaurant industry in Egypt is the Value Added Tax (VAT) as Egypt imposes a standard VAT rate of 14%.

This tax is applied to most goods and services, including food and beverages served in restaurants.

It's crucial for restaurant owners to factor this percentage into their pricing strategies to ensure compliance with tax regulations while maintaining profitability.

In addition to VAT, service charges and tips are common components of the dining experience in Egypt.

While service charges are often included in the final bill, tips are usually given directly to the service staff.

It's essential for restaurant owners to understand the tax results of these additional charges, as they may affect the overall revenue and, consequently, tax liabilities.

Restaurant owners in Egypt are subject to corporate income tax on their profits. The corporate income tax rate can vary, so working closely with a tax professional can help optimize tax liabilities and ensure compliance with applicable regulations.

For restaurants collaborating with suppliers or engaging in international transactions, withholding tax may be required. This tax is deducted and applicable to certain payments, such as those made for services. Understanding the withholding tax obligations is important for both restaurant owners and their suppliers to avoid any potential issues with tax authorities.

Maintaining accurate and organized financial records is a fundamental part for restaurants in Egypt. From sales receipts to expense reports, as record-keeping facilitates the preparation of accurate tax returns and ensures that the business adheres to all relevant tax regulations.