Elite Financial Consulting board member Mohamed Kamal said in an interview with “Al Arabiya” today, Sunday, that the capital gains tax to be applied at the beginning of the new year on the Egyptian stock exchange should be negotiable, because the session of government agencies and parties in stock exchange on a negotiating table, will lead to a solution that is advantageous to the interest of the Egyptian market and economy, its prosperity and the increase in foreign and Egyptian investments.
He added that among the biggest points of the dispute over the enforcement mechanism is the distinction between holders of Egyptian nationality, residents and non-residents, imposing a tax on the resident and not imposing it on the non-resident Egyptian.
A board member of Elite Financial Consulting explained that this will lead to fraud by establishing overseas companies to enter the Egyptian market as a non-resident, and all these matters need to be addressed. in consider and negotiate with market parties to reach a formula that is very satisfying to the money market and the trader.
He pointed out that it currently is in the calculation of the stamp duty and the postponement of the capital gains tax to January 2022 are in force, and a few days ago the mechanism for applying and calculating the tax in the new year was enacted, but it has not yet been decided whether to abolish the stamp duty or apply the two taxes, and this has not been resolved or announced.
He stressed that we need to negotiate with the market parties to reach a solution that benefits the Egyptian market and economy.
Muhammad Kamal said that the interaction with the main index during today’s transactions is a large part of the inconvenience due to the application of the tax, as well as the controversy over the mechanism of application and the process of calculating the tax and opening of a tax file for the investor in the tax market better.
He added that there is no doubt that investment barriers include the imposition and calculation of the tax because it hinders the investment process and also affects the planned schedule for initial offerings, with the market’s great need for government offers and changing the market situation from decline to subsequent rises.
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