Dar Al-Khebra for Accounting and Auditing

5 Common Mistakes Small Businesses Make When Filing Tax Returns

1. Delaying the submission of the tax return, exposing the company to late penalties.

2. Entering inaccurate or unverified accounting data.

3. Failing to retain invoices and documents supporting transactions.

4. Neglecting to record sales subject to value-added tax.

5. Relying on an unqualified or unregistered accountant as an official tax representative.

Dar Al-Khebra Tip: Ensure the tax return is thoroughly reviewed before submission and consult a certified tax expert.

How to Prepare Your Company for a Surprise Tax Audit?

1. Maintain updated and organized accounting records.

2. Ensure the availability of all tax invoices, purchase, and sales invoices.

3. Prepare reports reconciling tax returns with actual documents.

4. Accurately review deferred tax balances.

5. Fully cooperate with the tax auditor and provide the required documents promptly.

What is the Difference Between an Accountant and an Auditor? Who is Responsible Before the Tax Authority?

- Accountant: Responsible for preparing entries, records, and financial statements within the company.

- Auditor: An independent entity that reviews and examines the accountant’s work, issuing a neutral legal report.

- The tax authority legally deals with the legal management or the authorized certified accountant, but the auditor’s report is an important legal reference in disputes.

Steps to Establish a Limited Liability Company in Egypt

1. Visit the General Authority for Investment.

2. Prepare and notarize the company’s articles of association at the real estate registry.

3. Open a bank account in the company’s name and deposit the capital.

4. Obtain the commercial registry and tax card.

5. Register with the Chamber of Commerce and enroll in value-added tax.

Simplified Explanation of the Electronic Invoicing System and Its Obligation for Companies

- A digital system through which companies instantly register invoices with the tax authority.

- Contributes to reducing tax evasion and promoting transparency.

- Mandatory for companies registered for value-added tax.

- Companies must register in the system and sign invoices using an electronic signature.

The Importance of Periodic Auditing in Detecting Financial Errors Before They Escalate

- Ensures the accuracy of records and their alignment with reality.

- Uncovers accounting errors and embezzlements before losses escalate.

- Enhances the confidence of management and investors in the company’s financial structure.

- A legal requirement for many financing entities and tenders.