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Sunday, 4 October 2020

New stamp tax on securities will see the government collect up to 0.125% on every transaction

Lower stamp tax on EGX transactions is now in effect: Amendments to the Stamp Tax Act that lower the stamp tax on EGX transactions and the withholding tax on dividends are now the law of the land following President Abdel Fattah El Sisi’s sign-off, according to a Financial Regulatory Authority statement (pdf). The amendments, which the House of Representatives had approved in July, set a tax rate on EGX trades of 0.125% for foreign investors and 0.075% for residents, both of which were previously set at 0.15%. Intraday transactions are still exempt from the stamp tax, according to the statement. The tax on dividends has been cut in half to 5% for foreign and resident investors alike.

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