Are home internet and phone expenses paid to employees subject to salary tax in Egypt?

In Egypt, expenses such as home internet and phone costs paid directly to employees are considered employee benefits under local tax law. As a result, these payments are subject to 100% salary tax unless specific compliance procedures are followed.

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Tax Implications

According to Egyptian Tax Law No. 91 (2005), any payments or allowances provided directly to employees are generally treated as taxable income. This includes reimbursements or direct payments for:

Such benefits are fully taxable as part of the employee’s salary unless they are processed correctly as legitimate business expenses.

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