What is a Tax Card?
A Complete Guide to Tax Registration for Businesses & Freelancers in Egypt
Introduction
In Egypt, a Tax Card (البطاقة الضريبية) is a mandatory legal document issued by the Egyptian Tax Authority (ETA). It serves as a tax identification number (TIN) for individuals and businesses, ensuring compliance with Egypt’s tax laws.
Whether you’re a business owner, freelancer, or professional, obtaining a Tax Card is essential for legal operations and financial transactions.
What is a Tax Card?
The Tax Card is an official registration document that:
Identifies taxpayers (individuals/companies) to the Egyptian Tax Authority.
Tracks tax obligations (VAT, income tax, etc.).
Is required for invoicing, banking, and government transactions.
Who Needs a Tax Card?
| Category | Examples | Requirement |
|---|---|---|
| Businesses | Shops, LLCs, corporations | Mandatory for all commercial activities |
| Professionals | Doctors, engineers, lawyers, accountants | Required to practice legally |
| Freelancers | Designers, programmers, writers | Must register if income exceeds EGP 24K/year |
| SMEs | Startups, small enterprises | Needed for contracts and tax filings |
How to Obtain a Tax Card
1. Submitting the application:
An application is submitted to the tax authority to which the business activity belongs.
2. Required Documents
For Individuals: National ID + proof of activity (e.g., rental contract).
For Companies: Commercial Registration + Articles of Association.
3. Application Steps
Submit documents to the local Tax Authority office.
Pay fees (varies by activity).
Receive your Tax Card (typically within 10 days).
Note: Freelancers must declare annual income via a tax return.
Tax Registration for Freelance Professionals:
Freelance professionals in Egypt, such as lawyers, doctors, engineers, and accountants, must register with the Tax Authority as individuals and declare their annual income to determine their tax obligations accordingly. The process includes:
Submitting an Annual Tax Return: A yearly declaration stating their income.
Paying Taxes: The tax rate is determined based on income, where the tax increases as the annual income rises.
Pensions and Insurance: In some cases, they must enroll in social insurance, which depends on the nature of their profession.
The Situation for Freelancers Regarding Taxes in Egypt:
Freelancers (or self-employed individuals) face specific challenges when it comes to taxes in Egypt. In the past, there were few tax obligations for freelancers, but recently, the Egyptian Tax Authority has begun imposing taxes on freelancers' income through an annual tax return.
Procedures for Freelancers:
Obtaining a Tax Card: Freelancers practicing independent professions, such as design, programming, or writing, must go to the Tax Authority to obtain a tax card.
Paying Taxes: Freelancers must report their freelance income and pay the due taxes.
Registration in Social Insurance: If a freelancer works regularly and earns a steady income, they may be required to enroll in social insurance.
Conclusion:
The tax card is one of the fundamental pillars that contribute to regulating economic activities and ensuring compliance with tax laws in Egypt by individuals and businesses alike. Whether you're a business owner, a freelance professional, or an independent contractor, it is essential to be registered with the Tax Authority and maintain a valid tax card to ensure legal compliance and avoid any legal issues that may arise from tax evasion.
If you need legal consultation regarding obtaining a tax card or settling tax matters in accordance with the law, you can contact Ellwaa Legal Services Group through our website ellwaa.org. We are here to provide you with accurate consultations that will help you navigate all legal procedures with ease.
