لخّصلي

 Political
Political issues often affect organizations and their business practices. Businesses must be able
to adapt their marketing strategies to applicable laws now and in the future.
All of these issues relate to how and to what degree the government intervenes in the economy.
Could include some:
o Government Policy
The Egyptian government is working to control the Egyptian market to prevent any fraud. For
example, it has taken a number of measures during the past few days to confront the continuous
rise in prices, in an attempt to regulate the markets. It banned some monopolistic practices and
formed a committee to monitor production and supply levels.
The decisions include obliging companies to clearly specify the final selling price on products,
and directing citizens to report any outlet that sells a commodity in violation of the guide prices.
Companies must also issue sales invoices containing data specifying the type and quantity of the
product, and the selling price at the factory. As of March next month, the maximum final selling
price for consumers must include taxes and financial burdens.
o Government stability or instability Policy
One of the primary political factors that affect Egypt is government stability. Therefore, the
stability of the government is a crucial factor in determining the political landscape of Egypt.
The country has experienced significant political instability in recent years, including protests
and uprisings that have led to changes in government. The stability of the government is essential
for maintaining order and ensuring that the country can function effectively.
When the government is unstable, it can lead to unrest and even violence, negatively impacting
the country’s economy and citizens’ well-being.
o Tax Policy
The corporate tax is imposed on the annual taxable net profit. The taxable net profit is
determined based on the audited financial reports' net profit after adjusting it with certain
adjustments based on the income tax law.
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Taxpayers are required to file annual corporate income tax return which should be signed by a
local external tax advisor. Tax return under the Egyptian Tax Law is a self-assessment.
Accordingly, any understatement of tax liabilities in the tax return will result in the imposition of
penalties
Corporate income tax rate is 22.5% on net taxable income.
Tax losses can be carried forward for five subsequent years maximum
A serial of tax law amendments has been issued during the years 2013 - 2015 and the major
issues of such amendments on the corporate tax are about the Capital gains and Profits
distributions
o Corruption Policy
Corruption in Egypt is an important issue that affects various aspects of the country's
governance and economy. Laws exist to criminalize practices such as extortion, embezzlement,
and bribery, and companies sometimes rely on informal contacts within the government to obtain
preferential treatment, which can discourage competition and lead to an ineffective legal system.
The use of “waste,” or intermediaries, is common practice to navigate the complex regulatory
framework, and well-connected companies may receive favorable treatment.
The Egyptian government is making every effort to get rid of this corruption.