Back to the complete issue
Thursday, 13 February 2020

FEDCOC to submit “comprehensive” proposal to Egypt’s parliament on taxing EGX trades

Securities division at FEDCOC to present ‘comprehensive’ proposal for EGX taxes to house in month and a half: The securities division at the Federation of Egyptian Chambers of Commerce has invited capital market representatives for a meeting within 45 days with the House Economic Committee to discuss tax on stock market transactions, according to a local press report. The division agreed to prepare a comprehensive study which contains a clear proposal for taxes on the EGX that balances the costs incurred by investors and the amount of tax being collected. The House meeting would come as the Finance Ministry is close to wrapping up draft amendments that will determine whether the capital gains tax, which was shelved for three years in 2017 in favor of a provisional stamp tax, will be making a comeback.

The proposal will likely echo one floated by the Egyptian Capital Markets Association (ECMA) in December, which would see a 0.1% withholding tax imposed on transactions involving resident investors, but cap what can be collected from a single investor at 10% of their realized profits in a given year.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2020 Enterprise Ventures LLC.