Tax treatment of forex gains and losses differences for FY2023

On 27 January 2024, the Egyptian Ministry of Finance issued Decree No. 34 of 2024, outlining the appropriate treatment for the differences in gains and losses arising from securing foreign currency in determining the taxable base for the fiscal year 2023 (FY2023).

Key highlights of the decree

Effective from 28 January 2024, both individual and juridical taxpayers engaged in activities requiring foreign currency are required to adhere to the provisions of the decree.The decree stipulates the below permissible difference rates for forex gains and losses during FY2023, provided that such currency is tied to and necessary for the taxpayer’s activity:

Taxpayers involved in activities requiring foreign currency are encouraged to familiarize themselves with the specified difference rates outlined in the decree. Staying informed about these regulations will assist in maintaining compliance and ensuring a smooth financial reporting process.