How are different expense categories treated in Egypt for reimbursement?

In Egypt, expense categories are treated in various ways for reimbursement, and many have specific requirements regarding taxability:

Taxable Categories

Mobile Phone Usage: Business usage of a personal mobile phone is considered a taxable benefit and must be taxed through the employee’s payroll, even when used for work purposes.

Internet at Home / Home Broadband: Home internet and broadband expenses are considered a personal benefit and are therefore fully taxable and processed via payroll.

Unsupported or Cash Reimbursements: Any expenses reimbursed without valid supporting documentation or receipts are considered a taxable benefit and included in the employee’s taxable income.

Expenses with Special Requirements

Mileage: Mileage is reimbursed at a fixed statutory rate of EGP 3.50 per kilometer. Fuel and tolls are reimbursable only when supported by valid invoices. Detailed journey information must be provided, and Pebl reserves the right to revise mileage rates in line with local regulations.

Parking and Tolls: Parking fees incurred during business journeys are reimbursable when supported by receipts.

Non-Taxable Expenses

These include business travel transportation (airfare, public transport, taxis with receipts), car rentals provided during business trips, accommodation during business travel, meals during business travel, client entertaining when business-related and properly documented, computer equipment and software used exclusively for business purposes, office supplies and stationery, dongles and data cards for business use, foreign currency exchange commissions, approved work permits and visas, professional certifications and memberships related to the job role, business-related training, technical books relevant to the role, conference fees, and exceptional business-related cancellation costs, provided all expenses are wholly, exclusively, and necessarily incurred for business purposes and supported by compliant documentation.

For all expense types, proper documentation is mandatory, including original invoices or receipts that meet Egyptian tax and VAT requirements. Expenses must be incurred solely for business purposes, approved by the supervisor, and submitted within the required timeframe to ensure compliant reimbursement under Egyptian tax regulations. Original documents may be required for tax inspection purposes