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Tuesday, 24 September 2019

Gov’t committee close to finalizing incentives package for new listings on Egypt’s bourse

EXCLUSIVE- Gov’t committee close to finalizing package of incentives for new EGX listings: A government committee has been working to put the final touches on a package of proposed incentives to stimulate IPO activity in the market and attract more foreign investment into Egyptian equities, the Finance Ministry told Enterprise in an exclusive statement. The committee, which Prime Minister Moustafa Madbouly formed earlier this year, includes Vice Minister of Finance Ahmed Kouchouk, Tax Authority head Abdel Azim Hussein, and ECMA board member Ayman Sabry. The proposal could be before Finance Minister Mohamed Maait for review “within weeks,” we’re told.

The package looks likely to include a mix of tax breaks for both Egyptian residents and non-residents, according to our sources, including a 50% tax break for seven years for companies that list 35% or more of their shares on the stock exchange. The proposal was put forth by the Egyptian Capital Markets Association (ECMA) earlier this year.

Also likely to be included in the package is a capital gains tax exemption for non-residents, while resident investors could see a full exemption from the stamp tax, which is currently set at 0.15%. The committee is also looking at mandating Misr for Central Clearing, Depository, and Registry (MCDR) with handling listed companies’ tax files to simplify procedures.

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