On February 12, 2025, Egypt published Law No. 5 of 2025 as part of the tax facilitation package to regularize and resolve the tax status of a specific group of taxpayers. This law provides opportunities for companies to comply with their Transfer Pricing obligations and avoid possible penalties.
Details of Law No. 5 of 2025
The referred law addresses taxpayers who have not filed their tax returns from 2020 to the period before the effective date of the law, as well as those who have filed them but require amendments due to omissions or errors. Specifically, Article 3 addresses Transfer Pricing documentation, allowing companies to regularize their situation without incurring penalties if they act within the established deadline.
Benefits for Companies
Companies will be able to:
- Avoid fines associated with failure to comply with Transfer Pricing documentation.
- Ensure compliance with Egyptian tax regulations.
- Improve their relationship with tax authorities by demonstrating transparency and proactivity.
Recommended Actions
Companies should review their Transfer Pricing policies and documentation to identify potential non-compliance. For discrepancies detected, it is crucial to act quickly to benefit from the provisions of Law No. 5 of 2025 and avoid future penalties.
Conclusion
Implementing Law No. 5 of 2025 in Egypt is crucial for companies to address their tax Transfer Pricing situation. Acting within the deadline is essential to take advantage of the benefits offered by this legislation.
Call to Action
If your company needs advice regarding Transfer Pricing compliance, do not hesitate to contact TPC Group. Our experienced team is ready to guide you through this process and ensure effective compliance with your tax obligations.
Source: ITR