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Egypt Regulatory Reporting Requirements: A Comprehensive Guide for Companies

In Egypt, companies are required to comply with various regulatory reporting requirements, which can be complex and time-consuming for foreign businesses operating in the country. This guide provides an overview of the key regulatory compliance obligations that companies must adhere to.

Financial Reporting Requirements

Mandatory Reporting Obligations

All Egyptian businesses, whether publicly traded or privately held, are required to prepare financial statements in accordance with Egyptian Accounting Standards (EAS) and have those financial statements audited by a certified public accountant (CPA) under the Corporate Law of 1981 and the Capital Market Authority Law of 1992.

Submission Requirements

Companies must submit:

  • An audit report
  • Balance sheet
  • Income statement
  • Cash flow statement to shareholders at their annual meeting
  • A detailed report on its operations, including development and results, every three months following its initial public offering

Additionally, companies are required to send a progress report and a report of accounts (before certification) to the Capital Market Authority within one month after the end of each fiscal year. The certified accounts must be published in at least two reference periodicals, with one being in Arabic, as listed in Official Schedule 1.

Tax Compliance and Filing Obligations

Financial Statement Preparation

The financial statements of companies must be prepared in conformity with EAS and serve as the primary foundation for calculating annual net taxable income.

Tax Return Filing

All businesses are required to file their corporate income tax returns within four months after the end of each fiscal year, with a deadline of April 30th of the following year. Self-assessment is used to prepare tax returns, where the taxpayer determines the taxes owed and includes payment with the return submission to the Egyptian Tax Authority (ETA).

Value-Added Tax (VAT) Filing

Other returns such as value-added tax (VAT) must be submitted monthly.

Anti-Money Laundering and Counter-Terrorism Financing Regulations

Domestic Policy

The Egyptian government has implemented a domestic anti-money laundering policy in addition to the global AML policy to combat financial crime. The Anti-Money Laundering Law (CML) was passed in 2002, making it illegal to launder money obtained through drug trafficking, prostitution, terrorism, gun sales, organized crime, and other activities.

Financial Intelligence Agency

The Money Laundering Combating Unit (MLCU) was created in 2002 as the financial intelligence agency responsible for investigating suspicious transaction reports from financial institutions or other organizations. The MLCU is an independent unit within the Central Bank of Egypt (CBE).

Regulatory Bodies

The Egyptian Financial Supervisory Authority (EFSA) also regulates anti-money laundering, while the Personal Data Protection Centre oversees compliance with the Data Protection Law.

Conclusion

Complying with regulatory reporting requirements in Egypt can be a daunting task for foreign companies operating in the country. However, with Norebase’s Autocomply software, businesses can stay on top of new regulations and compliance obligations, ensuring seamless compliance with Egyptian regulatory requirements.