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Tax Authority: Advance pricing agreements offer tax certainty

Businessmen Team news 07 August 2025 01:32 PM
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Tax Authority: Advance pricing agreements offer tax certainty

The head of the Egyptian Tax Authority, Rasha Abdel Aal, announced that the agency is prioritizing transfer pricing to enhance tax certainty and ensure fair profit allocation among related parties within multinational entities.

Abdel Aal stated that this focus is in line with directives from Finance Minister Ahmed Kouchouk to boost the efficiency of the tax administration in advanced technical fields like transfer pricing.

She highlighted Advance Pricing Agreements (APAs) as an effective tool for achieving tax stability and stimulating long-term investment.

She noted that a recent workshop on APAs, held from July 27-31, 2025, focused on unilateral agreements, documentation requirements, and transaction analysis. This workshop is part of a series that began in January, which covered various types of agreements including unilateral, bilateral, and multilateral APAs.

According to Abdel Aal, upcoming workshops will detail bilateral and multilateral agreements as part of a comprehensive training plan. This plan aims to build a skilled technical team capable of handling these advanced tax agreements.

The workshop also covered key areas such as the valuation of intangible assets, the treatment of intercompany financial transactions, and value chain and FAR analysis to establish a solid foundation for the allocation of taxable profits.

Abdel Aal concluded that the authority is committed to developing its transfer pricing management capabilities to align with international best practices and strengthen Egypt's position as a regional leader in modernizing tax policies.