Egypt plans stamp tax to replace capital gains tax on stocks

Egypt plans to replace the capital gains tax on stock market transactions with a stamp tax and introduce incentives to encourage more companies to list on the Egyptian Exchange (EGX), Finance Minister Ahmed Kouchouk said on Monday.

The proposed reforms include a three-year tax incentive for companies seeking to list on the Egyptian Exchange as part of efforts to boost market liquidity and attract investment.

“The package introduces a three-year incentive to encourage companies to list on the Egyptian Exchange while helping increase trading activity and investment,” Kouchouk said during a meeting with Prime Minister Moustafa Madbouly.

He said replacing the capital gains tax with a stamp tax would ease the tax burden on investors and support trading activity on the Egyptian Exchange.

The proposed measures form part of Egypt’s broader efforts to deepen capital markets, increase listings and improve the investment climate, and will take effect once approved by parliament.

Attribution: Amwal Al Ghad English