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Sunday, 24 February 2019

El Sisi ratifies new tax treatment for Egyptian banks

LEGISLATION WATCH- El Sisi ratifies new tax treatment for banks: President Abdel Fattah El Sisi has signed off on proposed amendments to the Income Tax Act that change how banks and corporations account for income from investments in government debt, according to a Finance Ministry statement (pdf). The ministry will immediately begin outlining the executive regulations, the statement notes, adding that the regs will take into account recent discussions in meetings with the Federation of Egyptian Banks. The House of Representatives approved the changes earlier this month.

Background: The measure will require banks and companies to separately account for earnings from their holdings of government debt and could see their effective tax rates rise. The measure will apply only to gains on debt bought after the treatment comes into effect.

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