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Thursday, 11 May 2017

Council of State signs off on stamp tax duty, sends to House

Stamp tax on all capital market transactions back with the House for a final vote: Maglis Al Dawla (Council of State) has finished reviewing amendments to the Income Tax Law that will incorporate a stamp tax on EGX transactions, Deputy Finance Minister Amr El Monayer told Al Borsa on Wednesday. The amendments, which the Ismail cabinet had approved in March, impose a 0.125% duty that will gradually increase to 0.175% over a three-year span, on the buy- and sell-sides of all capital market transactions, as well as a 0.3% duty on transactions where 33% or more of a company’s shares are being sold. The House of Representatives will receive the amended bill today. While El Monayer says a final vote should come by 17 May, we’re expecting a delay after MPs reportedly went into recess yesterday until 29 May.

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