Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), said that, as part of close coordination between the Ministry of Finance, the Egyptian Tax Authority and the Financial Regulatory Authority (FRA), a package of tax incentives and benefits has been approved for securities market activities to stimulate the capital market and support the economy.
The measures form part of the second package of tax facilitation reforms and are in line with the directives of Finance Minister Ahmed Kouchouk to support compliant taxpayers, encourage investment, and provide additional incentives for businesses.
Abdel Aal explained that a number of amendments have been introduced to the Income Tax Law No. 91 of 2005 and the Stamp Duty Law No. 111 of 1980. The amendments are designed to eliminate double taxation on dividends, introduce a cash incentive—subject to specified eligibility criteria—for companies listing their shares on the stock exchange, and exempt capital gains arising from the disposal of securities listed on the Egyptian Exchange (EGX) from income tax. Such transactions will instead remain subject only to the proportional stamp duty prescribed under the Stamp Duty Law No. 111 of 1980.
She added that transactions involving the sale of unlisted securities will no longer be subject to stamp duty and will instead be subject only to income tax, thereby eliminating double taxation on those transactions.
Abdel Aal also noted that market-making activities have been exempted from stamp duty in recognition of their role in supporting the Egyptian Exchange, enhancing market liquidity, and increasing trading volumes.
She added that a clear mechanism has also been established for calculating the acquisition cost of unlisted securities, with the aim of simplifying tax calculations related to capital gains realised from the disposal of securities that are not listed on the Egyptian Exchange.
