Have there been any significant regulatory developments in Egypt over the last 12 months?

Yes, there have been some regulatory developments during the last 12 months. Our concern (as accountants) lies in:

• The government offering some its owned assets for sale. These assets are its share in some companies and factories.
• A lot of significant changes in the Tax Laws, including increases in some areas (increasing the top % for the income tax return to 27.5% for taxable income over 1 million Egyptian pounds)
• Some incentives are granted to speed up the process as far as time is concerned for the establishment of new companies called (the Golden Licence).
• Egyptians residing abroad get some custom duties incentives in regards to importing vehicles.
• Increase in custom duties on some commodities that the government called provocative items!
• Real estate tax has increased for the next 5 years between 30% to 40%

How would you describe the health of the accounting industry in Egypt in terms of customer demand, fee pressure, and staff recruitment and retention?

Demand for professional accounting, auditing and tax services have increased drastically in the last few years as the government has produced the "electronic invoice" for nearly all the commercial and non-commercial activities.

All bank customers dealing with banks (loans, overdrafts, L/c's etc.) must submit a complete set of "audited" financial statement signed by a credited public accountant at the end of their fiscal year. The Tax Department has increased the tax audit sample on all sectors of business in Egypt thus the help of tax experts is now in demand.

Certified Public Accountants firms whether small or medium size are under pressure from the government body "The Financial Regulatory Authority" as they are under peer review regularly.

Unfortunately, the small and medium size accounting firms are suffering the lack of suitable (adequate) fees increase as the country general inflation is much higher.

Finding and hiring fresh graduates for the small & medium size firms is still a big challenge. These firms will train & qualify the personnel, then face them leaving.

Are there any service areas where demand has grown over the last 12 months?

Consultations with all its sub categories are now in demand, such as buying and selling companies. Partial and full acquisitions have risen in the last few years.

Has there been any significant consolidation or merger activity in the accounting profession?

Small & medium size firms tend to merge together to face the power of the big 6 firms here in Egypt and also the correct and remedy any deficit or lack of certain qualifications in the industry. Also some swapping happened between the big 4 firms concerning some of their major partners.

For the full IAB Egypt Country Report, please click here.