According to national legislation, financial statements of all companies are subject to mandatory audit. Financial statements can only be audited by a certified auditor that is on the list of the Ministry of Finance of Egypt.
In Egypt, the financial year does not coincide with the calendar year and lasts from 1 July to 30 June. However, in accordance with the Companies Law No. 159, companies themselves determine their financial year for the purpose of making financial statements and state it in their articles of association.
Companies with foreign investment, except companies that operate under production sharing agreements with governmental entities, are required to fill in a quarterly form on the website of the General Authority for Investment and Free Zones and attach interim financial statements (if any) or the latest annual financial statements. The filing deadline is 45 days after the end of each quarter.
The corporate income tax return must be filed with the tax office within 4 months of the end of the financial year. VAT returns are filed monthly within 1 month of the end of the VAT period.
Failure to fill in the form on the website of the General Authority for Investment and Free Zones, which includes the filing of financial statements, carries a penalty not exceeding EGP 50 000.
Late filing of a tax return carries a penalty of EGP 3 000 to EGP 50 000 if the tax return is filed within 60 days after the deadline, and a penalty of EGP 50 000 to EGP 200 000 if the delay exceeds 60 days.
As a general rule, in order to prepare financial statements and successfully pass an audit for the reporting period, it is necessary to provide the following documents:
1) Statements of all bank accounts of the company covering the reporting period (including statements in electronic form, if available)
Requirements for bank statements:
3) Copies of contracts made in the reporting period, or which continue in the reporting period, as well as all additional agreements to such contracts
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Services
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Fees (USD)
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Preparation of financial statements
(payable on a monthly basis) |
250 – 300 / month*[1]
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Preparation of tax returns
(payable on a monthly basis) |
400 – 450 / month*
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Conducting of an audit[2]
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from 5 000 / year*
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Additional assistance from GSL specialists with financial and tax reporting as well as audit (where necessary)
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100 – 400 / hour[3]
(based on time spent) |
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Advising on legal, tax, and accounting matters
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from 300 / hour
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[1] *This is an indicative fee. The final cost will depend on the company’s business operations (type and scope of activity, number of transactions, etc.).
The fees do not include local VAT (the standard VAT rate in Egypt is 14%, although reduced rates may apply in certain cases).
[2] The estimated cost will be agreed with the client in advance (a fee estimate is made by local specialists based on the description of the company’s business operations). The final cost will be known after the accounting documents are given to the auditor.
[3] The rate depends on the type of work and the qualification of a specialist involved.