Egypt decides to cancel the stock exchange tax on resident investors

The official spokesperson for the Presidency of the Council of Ministers in Egypt, Ambassador Nader Saad, announced that the coordination efforts made by the Ministry of Finance with the management of the Egyptian Stock Exchange, the Financial Supervisory Authority and the parts of the securities sector, resulted in reaching an incentive package that would contribute to to support the capabilities and competitiveness of the Egyptian stock market, and help it to grow at all levels to play a greater role in supporting economic and social development plans, thus improving the market position in the world indicators and thus increasing its capacity to attract more foreign investment.

Ambassador Nader Saad stressed that the meetings held in this regard have seen flexibility and consent from all parties, and the Ministry of Finance has responded to the technical and legitimate requests made by the stock exchange administration on behalf of the various market players. , on some issues related to the application of the capital gains tax, which included the cancellation of the capital gains tax Stamp duty on stock exchange transactions for the resident investor to ensure the fairness of not paying tax in loss, and the deduction of all expenses related to trading, stock keeping and other tax base.

How much incentive will be calculated for the money invested in scholarship and deducted from the tax base in case of profit making, and this matter would help maximize investor returns and do justice between the various savings funds. In addition to calculating the profit by comparing the purchase price or the closing price of the shares before the start of the demand, whichever is greater than the selling price to increase investor returns, reducing the tax on the profit realized in the new offers of 50% for the first two years from the issuance of the law, and deferring the payment of the tax until the completion of the sales process in Cash In stock exchange transactions whenever the buyer is listed on the Egyptian Stock Exchange, this encourages listed companies to acquire unlisted companies and create large entities that help in the growth of the market.

Ambassador Nader Saad added that it was agreed that no tax files will be opened for individuals who invest in exchange and that the clearing house will calculate and collect the tax after deducting all the expenses it has requested to be entered and the incentive, and that to be at the end of each year and on the total operations of the investment portfolio, with the ” adoption of the offer method through capital increases as a non-taxable event.

It was also decided to reduce the tax rate on individual investors through equity funds to 5% on the realized profit, and to exempt equity investment funds from all taxes on shares and to allocate the fund to calculate and provide them without opening files. tax for investors in the documents, and to stimulate venture capital funds from Through exemptions for their reports in free shares of start-up and a 5% tax reduction for policyholders in case of profits.

Ambassador Nader Saad confirmed the continuation of all the exemptions stipulated in favor of the holders of documents of cash funds and fixed income instruments, and a new unit will be set up to solve all the problems relating to listed companies, reporting directly to the head of the General Investment Authority to fulfill all matters relating to these companies, with the formation of a joint committee between the General Investment Authority, the Egyptian Stock Exchange and the Financial Supervisory Authority are affiliated with the Prime Minister to coordinate and accelerate the resolution of all listed companies’ issues, as well as the modification by the General Investment Authority of the requirements of the guide form for the issuance of preference shares in favor of emerging companies and entrepreneurs in general.

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