Issuing Permanent and Temporary Tax Files for Subsidiary and Sister Companies

Subsidiary and sister companies operating in Egypt are legally required to open a tax file with the Egyptian Tax Authority, either permanent or temporary, depending on the nature and duration of their business activities. This step is essential to begin any commercial, industrial, or service activity.

Permanent Tax File: Opened when a subsidiary or sister company is established for long-term business purposes. It serves as the official tax identity used for filing returns and paying taxes.

Temporary Tax File: Used for short-term or project-based operations, such as limited-time construction or expansion projects. It can be converted to a permanent file if the business continues.

Steps to Open a Tax File:

1. Visit the tax office responsible for the company’s registered address.
2. Submit incorporation documents: commercial registration, tax card, articles of association, and address proof.
3. Fill in the tax file application, specifying whether the file is permanent or temporary.
4. Receive the tax file number and determine applicable tax types (income tax, VAT, withholding tax, etc.).
5. Submit the file to the tax officer and activate it in the system.

Required Documents:

• A copy of the commercial register of the subsidiary or sister company.
• Lease or ownership contract of the company’s premises.
• Original or pending tax card.
• A copy of the parent company’s articles (for sister companies).
• Power of attorney for the legal representative.

Important Notes:

• Temporary files are closed automatically after the project ends unless officially converted to permanent.
• Any change in address or business activity must be reported to the tax authority.
• A tax file must be created before registering for the E-Invoice System or Tax Automation Services.