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Tax Withholding Campus Conversation

January 24, 2021

Last week's campus conversation explained how AUC will begin to withhold taxes on employee salaries and wages and remit them to the Egyptian Tax Authority monthly. Here are some key takeaways from the conversation. For FAQs, click here. To find upcoming info sessions, click here.

- All employees, including non-Egyptians, are subject to pay taxes to the Egyptian government. AUC faculty and staff receive a discounted income tax rate. 

- AUC employees do not have to pay past due taxes, since the University paid back all taxes and penalties owed on behalf of employees.  

- The tax rate depends on your salary and will typically be between 0 and 9 percent.

- A permanent, one-time salary raise has been implemented for affected faculty and staff to compensate for upcoming tax payments, resulting in the same net pay.

- There will be information sessions for those who pay U.S. taxes to help understand how to properly pay your Egyptian and U.S. taxes

- Employees are encouraged to consult a tax adviser to assist with understanding tax payments, both foreign and Egyptian.

- Any future increases in income taxes and/or rates will be the individual's responsibility.