Legislative amendments to the Income Tax and Stamp Duty laws
Cairo - Nadeh Imam: Rasha Abdel Aal, head of the Egyptian Tax Authority, confirmed that the Ministry of Finance, the Egyptian Tax Authority, and the Financial Regulatory Authority are working in a coordinated framework to implement a package of tax measures and incentives aimed at supporting securities market activity and revitalizing the capital market. This initiative is part of the second package of tax facilitations and implements the directives of Ahmed Kojok, Minister of Finance, which seek to encourage investment and support compliant taxpayers.
She added that amendments introduced to Income Tax Law No. 91 of 2005 and Stamp Duty Law No. 111 of 1980 addressed several tax issues related to the securities market, foremost among them eliminating double taxation on dividend distributions, alongside establishing incentives and benefits for companies that list their shares for trading on the Egyptian Exchange.
She clarified that the amendments provide for exempting capital gains derived from the disposal of securities listed on the stock exchange from income tax, limiting such transactions to the proportional stamp duty stipulated in Stamp Duty Law No. 111 of 1980, thereby contributing to enhancing the competitiveness of the securities market and attracting further investments.
The head of the Authority noted that transactions involving unlisted securities have been exempted from stamp duty, subjecting them solely to income tax, thereby achieving tax fairness and completely eliminating double taxation.
She also explained that the amendments exempted the “market maker” activity from stamp duty, given the important role it plays in increasing trading volumes and enhancing liquidity within the Egyptian Exchange.
Abdel Aal emphasized that a clear and simplified mechanism has been introduced to determine the acquisition cost of unlisted securities, facilitating the calculation of taxes due on capital gains from their disposal, simplifying tax accounting procedures, and providing greater clarity for investors.
