Egypt
1. Egypt was reviewed as part of the 2017/2018 and the 2018/2019 peer reviews. This report is supplementary to those previous reports (OECD, 2019[1]) (OECD, 2018[2]).
2. The first filing obligation for a CbC report in Egypt applies to reporting fiscal years ending on or after the 31 December 2018.
Summary of key findings
3. Egypt’s legal and administrative framework to implement Action 13 meets all applicable terms of reference (OECD, 2017[3]), except for the following:
It is recommended that Egypt take steps to ensure that its definition of Group of Associated Enterprises is in line with the required definition of Group. This recommendation remains unchanged since the 2018/2019 peer review.
It is recommended that Egypt take steps to ensure that its definition of Egyptian Parented GAE is in line with the required definition of Ultimate Parent Entity and Multinational Enterprise Group. This recommendation remains unchanged since the 2018/2019 peer review.
It is recommended that Egypt take steps to ensure that its definition of multinational group is in line with the required definition of Multinational Enterprise Group. This recommendation remains unchanged since the 2018/2019 peer review.
It is recommended that Egypt take steps to ensure that enforcement provisions and monitoring relating to the enforcement of CbCR filing obligations are implemented. This recommendation remains unchanged since the 2018/2019 peer review.
4. It is recommended that Egypt take steps to have qualifying competent authority agreements in effect with jurisdictions of the Inclusive Framework that meet the confidentiality, consistency and appropriate use conditions and with which Egypt has an international exchange of information agreement in effect that allows for the automatic exchange of tax information. This recommendation remains unchanged since the 2017/2018 peer review.
5. It is recommended that Egypt take steps to implement processes or written procedures to ensure that the exchange of information is conducted in a manner consistent with the terms of reference relating to the exchange of information framework ahead of the first exchanges of information. This recommendation remains unchanged since the 2018/2019 peer review.
6. It is recommended that Egypt take steps to ensure that the appropriate use condition is met ahead of the first exchanges of information. This recommendation remains unchanged since the 2017/2018 peer review.
Part A: The domestic legal and administrative framework
7. Egypt has Transfer Pricing Guidelines issued by Ministerial Decree in place to implement the BEPS Action 13 minimum standard.
Conclusion
13. The recommendation in the 2017/18 peer review, that Egypt finalise its domestic legal and administrative framework in relation to CbC requirements as soon as possible, is removed.
14. Egypt’s domestic legal framework meets all applicable terms of reference, except for the following:
It is recommended that Egypt take steps to ensure that its definition of group is in line with the required definition of Group.
It is recommended that Egypt take steps to ensure that its definition of parent entity is in line with the required definition of Ultimate Parent Entity.
It is recommended that Egypt take steps to ensure that its definition of multinational group is in line with the required definition of Multinational Enterprise Group.
It is recommended that Egypt take steps to ensure that enforcement provisions and monitoring relating to the enforcement of CbCR filing obligations are implemented.
Part B: The exchange of information framework
(a) Exchange of information framework
15. As of 31 March 2020, Egypt has no bilateral relationships in place for the exchange of CbC reports. It is recommended that Egypt take steps to have qualifying competent authority agreements in effect with jurisdictions of the Inclusive Framework that meet the confidentiality, consistency and appropriate use conditions and with which Egypt has an international exchange of information agreement in effect that allows for the automatic exchange of tax information.
(f) Consultation with other Competent Authority before determining systemic failure or significant non-compliance
20. No changes were identified.
Conclusion
23. It is recommended that Egypt take steps to have QCAAs in effect with jurisdictions of the Inclusive Framework which meet the confidentiality, consistency and appropriate use prerequisites and with which Egypt has an international exchange of information agreement in effect that allows for the automatic exchange of tax information remains in place. This recommendation remains unchanged since the 2017/2018 peer review.
24. It is recommended that Egypt take steps to implement processes or written procedures to ensure that the exchange of information is conducted in a manner consistent with the terms of reference relating to the exchange of information framework ahead of its first exchanges of information. This recommendation remains unchanged since the 2018/2019 peer review.
References
OECD (2019), Country-by-Country Reporting – Compilation of Peer Review Reports (Phase 2): Inclusive Framework on BEPS: Action 13, OECD/G20 Base Erosion and Profit Shifting Project, OECD Publishing, Paris, https://dx.doi.org/10.1787/f9bf1157-en. [1]
OECD (2018), Country-by-Country Reporting – Compilation of Peer Review Reports (Phase 1): Inclusive Framework on BEPS: Action 13, OECD/G20 Base Erosion and Profit Shifting Project, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264300057-en. [2]
OECD (2017), Terms of reference for the conduct of peer review of the Action 13 minimum standard on country-by-country reporting, OECD Publishing, https://www.oecd.org/tax/beps/beps-action-13-on-country-by-country-reporting-peer-review-documents.pdf. [3]