The Egyptian Tax Authority will impose tax on shareholders and investment funds that make capital gains from the acquisition deal of National Société Générale Bank (NSGB) by Qatar National Bank (QNB), said Mamdouh Omar, chairman of the Authority.
Société Générale will be exempted from taxes for the transaction under an agreement to avoid double taxation between Egypt and France, but individual shareholders and investment funds holding minority stakes in NSGB will have to pay a 10% tax on their gains, as per article no. 56 (bis) of law no. 91 of 2005.
NSGB’s consolidated business results showed that the bank achieved net profit of EGP 1.537 billion in 2012, compared to EGP 1.489 in 2011, registering a growth rate of 3.2%.
The bank’s non-consolidated financial statements showed that the bank achieved net profit of EGP 1.536 billion in 2012, compared to EGP 1.47 billion in 2011.
The Central Bank of Egypt (CBE) has approved QNB’s request to acquire 100% of NSGB. The offer values the bank at US$ 2.558 billion.