TABLE OF CONTENTS
Remote People Egypt ensures that employees are reimbursed for legitimate business expenses in compliance with Egyptian tax laws and company policies. Proper documentation and adherence to procedures are essential to avoid tax implications and ensure smooth processing.
Under Articles 11 and 12 of Egyptian Tax Law No. 91 (2005), any payment made to an employee is considered taxable income unless it is properly classified as a business expense.
To be treated as a non-taxable reimbursement, expenses must comply with Decision No. 323 (2022) issued by the Egyptian Tax Authority.
How to Ensure an Expense Is Treated as a Business Cost
To correctly categorize an expense as a non-taxable business reimbursement, employees must:
Ensure the invoice is issued in the name and tax ID of their official employer in Egypt
Remote People Global HR Consulting
Commercial registration number: 208452
Use the Egyptian E-Invoicing Portal for all local vendor invoices.
Confirm the correct company name and tax details before arranging any expense.
Reimbursements not supported by a compliant e-invoice will be treated as taxable income.
Travel & Mileage
Mileage Reimbursement
Employees using personal vehicles for business travel may claim EGP 10–15 per kilometer.
A detailed mileage logmust be maintained, including:
Date of travel
Purpose of trip
Start and end locations
Total kilometers traveled
Parking & Tolls
Parking tickets and tolls must be submitted as separate expenses with receipts.
Illegal parking fines are not reimbursable.
Business Travel Restrictions
Travel must be related to the company's business activity to be accepted by the Tax Authority.
There are no specific rules for air, bus, train, tram, taxi, or rental car travel.
Invoicing & Documentation
To be reimbursed tax-free, invoices must include:
For Local Vendors (Inside Egypt):
Company name (Remote People Egypt)
VAT registration number
Company address
Must be issued via the Egyptian E-Invoicing Portal
For Foreign Vendors (Outside Egypt):
Company name (Remote People Egypt)
VAT registration number
Company address
Invoice Requirements
Invoices are always required
Remote People must be listed as the legal employer
No threshold under which invoices are not required
Reimbursement & Taxability
Tax-Free Reimbursable Expenses
With proper documentation (e.g., e-invoicing), the following are tax-free:
Transportation (e.g., Uber)
Business travel
Office-related purchases
Per Diems
Cash allowances are taxable
No official per diem exemption rates provided
All per diem payments must be documented and will be taxed unless exempted by law
Entertainment & Gifts
All benefits related to employees are subject to tax
Includes client entertainment, team gatherings, and gifts
Health & Wellness Expenses
Employees may claim medical bills if covered under a company-wide medical insurance policy
Individual entertainment or wellness expenses (e.g., gym, yoga) are considered taxable benefits
VAT
VAT (Value Added Tax) applies to all reimbursable expenses unless specifically exempted
Employers must ensure VAT compliance in accounting
Compliance Considerations
Group in-kind benefits (e.g., accommodation, medical care) are non-cash advantages provided to employees collectively and may be tax-exempt
All receipts must be accurate and complete
Expenses must be incurred directly for business purposes
Payments should be made via bank transfer or company card for audit compliance
Expenses must be reported within the fiscal year