Egypt Freelancer & Self-Employed — Annual Income Tax Return (Form 2) + VAT

Confirm the client's residency status, ETA registration, and Tax Identification Number (TRN — رقم التسجيل الضريبي). Determine whether the client is registered as a sole trader (تاجر فرد) or a professional (مهنة حرة) under Income Tax Law No. 91 of 2005, and whether they hold an e-Invoice portal account on invoicing.eta.gov.eg. Identify the correct tax district office (مأمورية ضرائب).

Gather all gross professional/commercial income for the tax year (1 January–31 December) and identify allowable deductions under Income Tax Law No. 91 of 2005. Deductible items include rent on a business premises, business-related equipment and supplies, employee salaries (if any), social insurance contributions, and depreciation on qualifying assets. The personal exemption (الإعفاء الشخصي) of EGP 15,000 and any dependant exemptions apply at this stage.

Apply the Egyptian personal income tax brackets to the net taxable income computed in Phase 2. The 2024/2025 brackets under Income Tax Law No. 91 of 2005 (as amended) are: 0% on the first EGP 15,000; 10% on EGP 15,001–30,000; 15% on EGP 30,001–45,000; 20% on EGP 45,001–60,000; 22.5% on EGP 60,001–200,000; 25% on EGP 200,001–400,000; 27.5% above EGP 400,000. Credit advance tax payments (دفعات مقدمة) already paid during the year against the gross liability.

Prepare and file the annual income tax return (إقرار ضريبة الدخل — النموذج رقم 2) with the ETA by the 31 March deadline. The return covers income from commercial activities (Schedule 3) or professional/freelance activities (Schedule 4) as applicable. Filing is done via the ETA's online tax portal (my.eta.gov.eg) or in person at the client's registered tax district office. Any net tax balance due must be paid by 31 March to avoid a late-payment surcharge of 1.5% per month.

Set up the advance-tax payment schedule for the coming year. Egyptian self-employed taxpayers are required to pay advance tax in four instalments by the last day of January, April, July, and October. Each instalment is typically 25% of the prior year's assessed liability (or estimated if the prior year return has not yet been finalised). Missing instalments attracts a late-payment surcharge of 1.5% per month.

If the client's annual turnover meets or exceeds the EGP 500,000 VAT registration threshold under VAT Law No. 67 of 2016, confirm registration, review monthly VAT return obligations, and ensure e-Invoice compliance. Monthly VAT returns must be filed and tax paid by the last day of the following month via the ETA e-Invoice portal (invoicing.eta.gov.eg). Failure to issue ETA-compliant e-Invoices may result in disallowance of input VAT credits for the client's own suppliers.