All You Need to Know About Working as an Independent Contractor in Egypt

All You Need to Know About Working as an Independent Contractor in Egypt

Everyone can agree that the number of independent contractors across the globe has, as a whole, increased significantly over the years. Nevertheless, there is still not enough information about successful freelancing in countries beside the U.S.A. That is why we made this guide on how to excel as an independent contractor in one of Africa’s largest economies.

Who is an independent contractor/freelancer?

To start off right, we should define who an independent contractor/freelancer is. This is someone who is self-employed and offers expert services to clients on a contract basis. A freelancer does not receive certain benefits from a company and files taxes independently. He or she is in control of their work method and schedule, and is not limited to one client.

Getting started as an independent contractor / freelancer in Egypt

Every great career has a strong foundation, and freelancing in Egypt is no exception. You will need the following documents to get started:

  • CV or Resume
  • In case the Freelancer or the Independent Contractor is a person who is enrolled in a Syndicate or a Company, it is required to submit or show the Syndicate Card and the Tax Card.

Invoices are as Important As Your Work

In any endeavor getting paid is essential, and as an independent contractor, clients pay you after receiving your invoice. Don’t leave out any of the information below in your invoice:

  • Contact information for both you and the client.
  • Date the Invoice was submitted
  • Overview of services rendered and their charges
  • Invoice Number
  • Due Date of the payment
  • Payment methods available
  • Total charges

Some things to consider for stress-free invoicing:

  • Organize your invoices for easy referencing and to provide proof when needed.
  • Have well stablished payment terms and communicate them clearly to your clients at the very beginning
  • In case the Freelancer or the Independent Contractor is a person who is enrolled in a Syndicate or a Company, it is allowed to issue an invoice including the aforementioned data; otherwise, it is not allowed to issue an invoice.

Taxes for independent contractors in Egypt

In case it is in a form of a Company, the applied Taxes will be 22.5%.

In case it is a person who is enrolled in a Syndicate (Affiliated to a legal entity), the applied Taxes will be calculated according to the annual income received which is calculated asper the Table mentioned in Article 8 of the income Tax Law No. 91 of the year 2005.

When A Client Pays from Another Country

Having international clients is a great way to broaden your network and clientele. But before you get too excited, remember that besides language and cultural barriers, the payment process may become more complicated. There are a few things to keep in mind when dealing with international payments:

  • Payment from international clients may lead to extra fees. These fees are also tax deductible and could be charges for bank transfer, foreign exchange fees, etc.
  • Have as many payment options available, in order to accommodate your international clients.
  • Tax is levied on the income gotten from overseas clients.
  • In case the income amount received has been transferred from outside the Country, some Banks requires the reasons for the transfer and the taxes are calculated from the revenue of the person by the usual ways of deducting Taxes.

How to open a bank account in Egypt

Only Egyptian citizens and residents can open bank accounts. In Egypt, different banks have their various requirements. On average, the documents listed below are normally required:

  • Valid national ID or passport
  • Proof of income
  • Utility bills or rental contract
  • The bank’s minimum deposit

 

If you are not an Egyptian citizen, you will also need to provide:

  • Your original passport (and a copy) with valid entry visa
  • Your residence permit
  • The bank’s minimum deposit
  • Passport photos

According to the articles, the new requirements for the self-employed, freelancers, and craftsmen to set up bank accounts are:

  • A national ID
  • Utility bills or a rental contract to verify the business or residence address

Furthermore, owners of micro-sized projects without business registration or license can open bank accounts. According to Ahramonline, these new rules are by President Abdel-Fattah El-Sisi; Enterprise explains that they are part of KYC regulations intended to “encourage more individuals to join the formal economy, boost financial inclusion, and boost enterprise growth through access to credit.”

For more information on the benefits of these new directives, you can read the articles mentioned.

Also remember: The fees associated with having an account in a particular bank differs from bank to bank.

Conclusion

Independent contractors need resources, such as this, to deepen their understanding of their countries’ freelancing industries. The insight will help them embrace the unique challenges and opportunities available in their nations.

 

Note. This content was generated by RemotePass team and reviewed by a certified tax advisor Youssry Saleh & Partners in Egypt.


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Sign up for your free demo today!

More from RemotePass

All You Need to Know About Working as an Independent Contractor in Egypt

All You Need to Know About Working as an Independent Contractor in Egypt

Everyone can agree that the number of independent contractors across the globe has, as a whole, increased significantly over the years. Nevertheless, there is still not enough information about successful freelancing in countries beside the U.S.A. That is why we made this guide on how to excel as an independent contractor in one of Africa’s largest economies.

Who is an independent contractor/freelancer?

To start off right, we should define who an independent contractor/freelancer is. This is someone who is self-employed and offers expert services to clients on a contract basis. A freelancer does not receive certain benefits from a company and files taxes independently. He or she is in control of their work method and schedule, and is not limited to one client.

Getting started as an independent contractor / freelancer in Egypt

Every great career has a strong foundation, and freelancing in Egypt is no exception. You will need the following documents to get started:

  • CV or Resume
  • In case the Freelancer or the Independent Contractor is a person who is enrolled in a Syndicate or a Company, it is required to submit or show the Syndicate Card and the Tax Card.

Invoices are as Important As Your Work

In any endeavor getting paid is essential, and as an independent contractor, clients pay you after receiving your invoice. Don’t leave out any of the information below in your invoice:

  • Contact information for both you and the client.
  • Date the Invoice was submitted
  • Overview of services rendered and their charges
  • Invoice Number
  • Due Date of the payment
  • Payment methods available
  • Total charges

Some things to consider for stress-free invoicing:

  • Organize your invoices for easy referencing and to provide proof when needed.
  • Have well stablished payment terms and communicate them clearly to your clients at the very beginning
  • In case the Freelancer or the Independent Contractor is a person who is enrolled in a Syndicate or a Company, it is allowed to issue an invoice including the aforementioned data; otherwise, it is not allowed to issue an invoice.

Taxes for independent contractors in Egypt

In case it is in a form of a Company, the applied Taxes will be 22.5%.

In case it is a person who is enrolled in a Syndicate (Affiliated to a legal entity), the applied Taxes will be calculated according to the annual income received which is calculated asper the Table mentioned in Article 8 of the income Tax Law No. 91 of the year 2005.

When A Client Pays from Another Country

Having international clients is a great way to broaden your network and clientele. But before you get too excited, remember that besides language and cultural barriers, the payment process may become more complicated. There are a few things to keep in mind when dealing with international payments:

  • Payment from international clients may lead to extra fees. These fees are also tax deductible and could be charges for bank transfer, foreign exchange fees, etc.
  • Have as many payment options available, in order to accommodate your international clients.
  • Tax is levied on the income gotten from overseas clients.
  • In case the income amount received has been transferred from outside the Country, some Banks requires the reasons for the transfer and the taxes are calculated from the revenue of the person by the usual ways of deducting Taxes.

How to open a bank account in Egypt

Only Egyptian citizens and residents can open bank accounts. In Egypt, different banks have their various requirements. On average, the documents listed below are normally required:

  • Valid national ID or passport
  • Proof of income
  • Utility bills or rental contract
  • The bank’s minimum deposit

 

If you are not an Egyptian citizen, you will also need to provide:

  • Your original passport (and a copy) with valid entry visa
  • Your residence permit
  • The bank’s minimum deposit
  • Passport photos

According to the articles, the new requirements for the self-employed, freelancers, and craftsmen to set up bank accounts are:

  • A national ID
  • Utility bills or a rental contract to verify the business or residence address

Furthermore, owners of micro-sized projects without business registration or license can open bank accounts. According to Ahramonline, these new rules are by President Abdel-Fattah El-Sisi; Enterprise explains that they are part of KYC regulations intended to “encourage more individuals to join the formal economy, boost financial inclusion, and boost enterprise growth through access to credit.”

For more information on the benefits of these new directives, you can read the articles mentioned.

Also remember: The fees associated with having an account in a particular bank differs from bank to bank.

Conclusion

Independent contractors need resources, such as this, to deepen their understanding of their countries’ freelancing industries. The insight will help them embrace the unique challenges and opportunities available in their nations.

 

Note. This content was generated by RemotePass team and reviewed by a certified tax advisor Youssry Saleh & Partners in Egypt.


Ready to get started?

Sign up for your free demo today!

More from RemotePass