Parliament approves Egypt’s new bank tax treatment
LEGISLATION WATCH- House approves new bank tax treatment: The House of Representatives’ general assembly approved yesterday proposed amendments to the Income Tax Act that would change how banks and corporations account for income from investments in government debt, according to state news agency MENA. The measure will require banks and companies alike to separately account for income derived from their holdings of government debt and could see their effective tax rate rise. A senior government official told us last week that the anticipation of the move by banks drove them to ratchet up their participation in treasury auctions, driving down yields and contributing to an influx of inflows and an appreciating EGP.
What’s next? The law now goes to President Abdel Fattah El Sisi for signing. The Finance Ministry will also have to outline executive regulations on the measure.