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Egypt–China Double Taxation Agreement – Benefits for Chinese Investors
Understand the Egypt–China Double Taxation Agreement (DTA) and how it helps Chinese investors avoid paying taxes twice. Key terms, benefits, and application process explained.
Egypt–China Double Taxation Agreement: What You Should Know
What Is a Double Taxation Agreement (DTA)?
A Double Taxation Agreement (DTA) is a bilateral treaty that ensures businesses and individuals don’t pay taxes twice on the same income in two countries.
Egypt and China signed their DTA in 1997, and it remains active today — providing tax benefits to:
Chinese companies operating in Egypt.
Egyptian companies doing business with China.
Chinese investors with profits from Egyptian entities.
Why the Egypt–China DTA Is Important for Chinese Investors
Without the DTA, a Chinese company could be:
Taxed on income earned in Egypt by the Egyptian government.
And taxed again on the same income in China.
With the DTA, you avoid this duplication — meaning:
Lower tax burden.
Higher profit repatriation.
More investment flexibility.
Protection from double audits.
Key Benefits of the Egypt–China DTA
| Area | Benefit for Chinese Investors |
| Withholding Tax Rates | Reduced rates on dividends, interest, and royalties. |
| Permanent Establishment | Clear rules on what defines taxable presence. |
| Tax Credits & Relief | Tax paid in Egypt credited against Chinese tax. |
| Business Profits | Exemptions if business has no permanent base in Egypt. |
| Construction Projects | Tax only after 6–12 months presence on site. |
Example: Dividends from Egypt to China
Without DTA:
Egypt: 10% withholding tax.
China: 20% additional tax on foreign-sourced income.
With DTA:
Egypt: 5–10% withholding only.
China: Tax credit or full exemption, depending on case.
Result: Significant net tax saving and better cash flow for Chinese investors.
Who Can Benefit from the Egypt–China DTA?
Chinese companies registered in Egypt.
Egyptian–Chinese joint ventures.
Chinese professionals working in Egypt.
Investors receiving dividends, royalties, or interest from Egyptian entities.
To benefit, you must prove residency in China and submit proper forms to the Egyptian Tax Authority.
Steps to Claim DTA Benefits
- Prepare a Tax Residency Certificate from Chinese authorities.
- Translate it into Arabic and certify it (with legal attestation if needed).
- Submit to the Egyptian Tax Authority with supporting documents.
- Apply before the end of the fiscal year to avoid default withholding.
- Maintain documentation in case of audit.
Translation Requirements for DTA Applications
You must translate into Arabic:
Tax residency certificate.
Business license or commercial register.
Tax filings and proof of payment in China.
Shareholding documents and contracts.
These translations must be certified and accepted by the Egyptian tax authority.
At COT Translation Services, we provide:
Certified Arabic translations of tax and financial documents.
Formatting to match Egyptian tax requirements.
Support with DTA application preparation.
Fast service for annual renewals or urgent tax filings.
FAQs
Can any Chinese company use the Egypt–China DTA?
Yes, as long as it’s registered in China and operates legally in Egypt. Proper documentation is required.
Is the tax treaty automatic or do I need to apply?
You must apply with the Egyptian Tax Authority and provide translated documentation.
What’s the typical withholding tax on royalties under the DTA?
Reduced from 20% to 10%, depending on the nature of the service.
Do I need certified translation for DTA documents?
Yes. All non-Arabic documents must be translated by a certified office and may require legal attestation.
Conclusion
The Egypt–China Double Taxation Agreement is a powerful financial tool for Chinese investors operating in Egypt. By reducing tax exposure and avoiding duplicate payments, it supports growth and cross-border trade.
At COT Translation Services, we ensure your tax documents are translated, certified, and submission-ready — so you can claim the benefits you deserve.
Call Us or Send the document via WhatsApp
Visit: www.cottranslation.com
Branches: Maadi – Downtown – Mohandessin
