Are professional training courses subject to salary tax in Egypt?

In Egypt, professional training courses provided to employees are not subject to salary tax, provided certain conditions and documentation requirements are met. This allows employers to support employee development without imposing additional tax liabilities on the training benefits.

Tax Treatment of Professional Training

According to Egyptian tax regulations, the cost of professional training courses paid or reimbursed by the employer to the employee is generally considered a non-taxable benefit, as long as the training is directly related to the employee’s current job or professional development.

This exemption encourages employers to invest in workforce skills and knowledge, supporting both employee growth and organizational performance.

Documentation Requirements

To qualify for this tax exemption, the training expense must be properly documented and supported by the following:

An official invoice from the training provider, showing the provider’s tax ID and the employer’s name and tax ID as the recipient
Proof that the training course is related to the employee’s professional role or career development
Evidence of payment made by the employer (not directly reimbursed to the employee without documentation)

Proper documentation is essential to demonstrate compliance with Articles 11 and 12 of Tax Law No. 91 (2005) and the guidelines issued by the Egyptian Tax Authority.

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Are professional training courses subject to salary tax in Egypt?