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Sunday, 22 March 2020

Cabinet greenlights EGX tax breaks

CABINET WATCH- Cabinet greenlights EGX tax breaks: The Madbouly Cabinet has approved the emergency measures announced last week to cut stamp tax on EGX transactions and the withholding tax on dividends to reduce market volatility due to the covid-19 outbreak, according to a cabinet statement out following its weekly meeting on Thursday. The changes would cut the tax on dividend income to 5%, and lower the 0.15% stamp tax to 0.125% for foreign investors and 0.05% for residents. A capital gains tax that was due to be reintroduced this year would be postponed to 1 January 2022.

Other decisions from Thursday’s meeting:

  • Approving changes to the executive regulations of a temporary law to settle building code violations to reflect legislative amendments ratified in January;
  • Greenlighting a contract with Schneider Electric to build 10 new power transmission control centers; and
  • Allocating a land plot in Zafarana to the Military Production Ministry to set up a plant to produce PV solar panels.

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