Transfer Pricing (TP) regulations in Egypt, overseen by various laws and regulations, are designed to govern commercial or financial transactions between related parties, both domestically and across borders. The related party transactions must adhere to arm’s length principles and involve a range of commercial and financial dealings, such as buying and selling goods, services, assets, and financial instruments.
Non-submission or late submission of TP documentation can result in penalties not exceeding 3% of the total value of related transactions, emphasizing the importance of timely and accurate compliance with TP regulations. Recent developments in Egypt show a significant rise in TP audits, reflecting the increased scrutiny and focus on TP compliance by the Egyptian Tax Authority (ETA).
These developments underline the growing importance of TP compliance and documentation, stressing the need for companies to ensure robust adherence to TP regulations to avoid penalties and contribute positively to the fiscal aspect of businesses in Egypt.
For a comprehensive overview of the transfer pricing landscape in African countries and detailed insights, download the full Grant Thornton Africa Transfer Pricing Landscape Guide 2023/2024.