Policy Board Meeting 10 – 11 March 2005

BDO Khaled & Co. was honored to host the BDO Policy Board Meeting in Cairo for the first time. The function started with a cocktail reception event that took place on the evening of 9 March 2005 at the Four Seasons Nile Plaza Hotel. The event was attended by all Policy Board Members and selective clients of the Egyptian member firm. The reception was also well taken care of with regards to publicity where Mr. Mathias, Mr. Samyn, Mr. Van Elten and Mr. Taha Khaled (Egypt's ILP) had the opportunity to be interviewed by a prominent TV Channel (Nile TV), in addition to other press interviews. During the reception, the President of the Egyptian Hokey Federation delivered a symbolic gift to the Chairman and Executive Board Members as an appreciation of BDO's participation in Sahara Champions Challenge. The Policy Board Members spelled out the success of their meeting at the end of 11 March 2005, and appreciated the efforts exerted by our firm.

 Sahara Champions Challenge, Men, Alexandria, Egypt, April 2005

 BDO's Egyptian Member firm has strongly supported this event, which took place recently (1-9 April). They have taken advertising in the goals, as well as on the shirt sleeves of the Egyptian team, sponsorship of the umpires' shirts, and extra boarding. In addition, Mr. Paul van Elten was selected to grant the Gold Medals and Mr. Mohanad Khaled (Egyptian Member Firm) was selected to grant the bronze medals at the closing ceremony, which was attended by the FIH president and the Governor of Alexandria.

 Regional News

 Mr. Taha Khaled in his capacity as the Middle East Regional Senior Partner has lately opened communication channels with potential accounting firms both in Libya and Sudan for being BDO affiliated or member firms, in their local territories. This has been part of the regional plan, specially after the political stability in Libya and the growth of business opportunities in both countries.

Also, congratulations to Gerard Rahman (ex. Middle East Regional Coordinator) for getting married. Mr. Rahman has been transferred from BDO – Dubai (where he use to be a partner to New Zealand). Mr. Rahman has contributed a great deal to The middle east. Region in general and to Dubai office in particular.

 New Clients Won

 Due to the trustful relationship and well known reputation of BDO Khaled & Co. at all levels of the Egyptian business society, we have lately been honored to be appreciated by the Central Bank of Egypt to conduct a valuation study on one of the prominent banks in Egypt,  Nile Bank. We received a personal appreciation on the work performed by the Vice Governor of the Central Bank of Egypt.

 In addition, after proving high quality audit of two quasi-governmental companies in the oil sector, headed by the Minister of Petroleum, His Excellency decided to appoint us as the auditor for two more companies, which are also headed by H.E.

 Moreover, BDO Khaled & Co. has won a World Bank tender, to audit one of their funds provided to a project in relation to the Egyptian Holding Company for Airports and Air Navigation.

 Also on the tax services side, BDO Khaled & Co. has been appointed as the tax advisor for one of the largest banks in Egypt, the National Development Bank. The service provided are mostly related to tax compliance services. We have also been appointed as the tax advisors for OTIS Elevators Egypt.

 In addition to all of the above, we have been cooperating very well with other member firms on business advisory services, examples of these member firms are the UK, Netherlands, Belgium, Switzerland, Spain, Dubai, Greece, etc.

 ACCA in Egypt

 BDO Khaled & Co. has started delivering ACCA courses from February to May 2005 to ACCA candidates in Egypt. The first session of courses showed great success, and accordingly, we will start the second semester courses in August 2005 for candidates sitting examinations in December 2005.

 Moreover, Mr. Mohanad T. Khaled a Senior Manager in the firm is currently finalizing an agreement with ACCA, to be the first voluntary representative of ACCA in Egypt.

 New Tax Law

 Mr. Taha M. Khaled (ILP) has been one of the main lobbyers of introducing a new tax law with lower tax rates. Finally, the dream became true, where the new tax law has been issued on 9 June 2005, and the corporate tax rate therewith has been reduced from 42% to became 20%, starting the fiscal year ending after issuance of the new law. As for the individual salary taxes, they were progressive rates with a maximum of 32%, and now after the new law, they are progressive rates with a maximum of 20%.