Egyptian Tax Administration

The tax administration in carries a low corruption risk for business investing in Egypt. Poor wages contribute to making low-level tax officials vulnerable to corruption ( GP&A 2012 ). Nonetheless, only a small percentage of surveyed companies expect to give gifts to tax officials ( ES 2013 ). Furthermore, very few companies believe tax rates and regulations are important obstacles to business ( GCR 2015-2016 ). Dealing with taxes is more time-consuming and costly than the regional average ( DB 2016 ).

Tax evasion is a serious problem for the Egyptian government. During 2015, the public prosecutor’s office recovered approximately USD 73 million in evaded assets and hundreds of real estates and state land, some of them owned by renowned businessmen and allies to the ousted regime ( Mada Masr , July 2015). Estimates suggest that Egypt has lost more than USD 37.6 billion to illicit financial flows in between 2003 and 2012 ( Mada Masr , July 2015).