ECMA lobbies EGX, FinMin to cut tax on dividends by up to 50%
Industry association lobbying to slash withholding tax on dividends: The Egyptian Capital Markets Association (ECMA) is lobbying the EGX and Finance Ministry to cut withholding tax on dividends by up to 50%, ECMA head Mohamed Maher tells Al Mal. As matters stand today, dividends paid by listed and privately held companies alike are subject to a 10% withholding tax that falls to 5% if the shareholder owns more than 25% of the company and has held its shares for at least two years (the good people at PricewaterhouseCoopers have more here and here and here). Maher is arguing that cutting the tax in half will make listings on the EGX more attractive.
Background: The Mehleb government had imposed the dividends tax back in 2014, and had been mulling a capital gains tax on stock market transactions. Under pressure from retail investors, the capital gains tax was scrapped, but the government decided to keep the dividends tax in place.