Dividend Income

The term dividend includes:

Dividends from shares in joint-stock companies, equity quotas in limited liability companies, investment securities issued by investment funds;
Profits attributable to a permanent establishment which are deemed to be distributed as dividends if the profits are not repatriated within 60 days from the fiscal year-end;
The amount of interest paid in excess of the arm’s length value;
Amount of interest paid on excess debt as per thin-capitalization rules; and
Amount of interest paid in excess of the interest rate specified by the Central Bank.

Interest

Interest includes all sums received from investment in loans, advances, any kind of debt, bonds, treasury bills, deposits, monetary guarantees, and any form of financing by securities with fixed or variable interest.

The following interest income is exempt:

Interest on loans and credit facilities received by the Government, local authority units, and other public legal persons from sources outside Egypt;
Interest received by public sector companies, public business sector, and the private sector provided that the loan or facility term is for at least three years; and
Income from government treasury bonds and bills.

Interest on government treasury bonds and bills benefitted from an exemption, but the exemption was removed for issues made from 6 September 2020.

Royalties

The term royalty includes payments made for:

The use, or the right to use, copyrights related to a literary, artistic, or scientific work, including cinema movies;
The use of any patent, trademark, design, model, plan, formula, or secret process;
The use or the right to use scientific, commercial, or industrial equipment, or information related to scientific, commercial, or industrial expertise;
Leasing industrial, commercial, or scientific equipment (leasing of equipment is deemed as using such equipment or the right to use such equipment); and
Using design or know-how.

Service Fees

Service fees include payments for administrative fees, management, and technical fees.

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