Mohamed Maait, Minister of Finance, has confirmed that no new taxes have been imposed on the stock market and there are no plans to do so.
The imposition of taxes could only be done through legislation approved by the Cabinet and the House of Representatives, not by ministerial decisions, he explained.
He added that the recent ministerial resolution No. 428 of 2021 provided only the rules and instructions for the tax treatment of capital gains resulting from securities, shares, and treasury bills transactions, as well as the stamp duty. It aimed to explain and simplify the tax treatment of various traded securities to facilitate the process for taxpayers.
Maait pointed out that this guide was not the first of its kind, but another one was previously issued explaining the procedures to be followed to pay taxes on capital gains for non-residents.
The recent ministerial resolution included the chronology of amendments to the Income Tax Law promulgated by Law No. 91 of 2005, as well as the Stamp Duty Law promulgated by Law No. 111 of 1980 to Law No. 199 of 2020, and the method, date, and prices of income tax on capital gains resulting from securities and treasury bills transactions, whether listed or unlisted. It also included the method, date, and prices of the relative stamp duty on the securities selling and buying, and an explanation of legal terms and the definition of capital gains subject to income tax in relation to securities of all kinds, and legal liability in accordance with the provisions of the Income Tax Law.
He added that this guideline was part of the Ministry of Finance’s approach to support transparency and simplify procedures for taxpayers.
A statement by the Ministry of Finance said that this guideline was praised by the business community, as it helped them understand the proper rules for tax treatment of capital gains.