On 17 February 2019, the Ministry of Finance of Egypt has published a draft consolidated tax procedures Act for public discussion. The Act aims to facilitate the procedures related to the collection of various taxes to prevent multiple procedures that promote the work of financiers and to facilitate the implementation of tax obligations. The main points are:
-The draft law will eliminate professional secrecy regarding requests formulated by tax inspectors to obtain registers and other relevant documentation that is kept by specialists, fund managers, etc.
– Taxpayers can apply for a mandatory tax ruling to the tax authority to process such a request within 60 days.- Any corporation involved in transactions with related parties must provide the tax authorities with three-level transfer pricing documentation in the following terms:
- Master file: no later than 2 months from the filing date by the parent entity of master file in its jurisdiction of resident;
- Local file: No later than 2 months after submission of the annual tax return of the Egyptian taxpayer; and
- Country-by-country report: Within one year of the end of the reference year.
-The act establishes the Arabic language as the official language for various tax requirements in accordance with current regulations. Documentation in other languages must be translated into Arabic by taxpayers.
-An electronic signature will be required to confirm the authenticity of the electronic filing of tax returns.- The annual corporate tax return must be filed within 4 months of the closing date of the fiscal year.
