The amendments, which received final parliamentary approval during a plenary session chaired by Speaker Pro Tempore Hisham Badawi, form part of the second phase of the government's tax facilitation initiative and are intended to enhance transparency, improve tax administration, and strengthen investor confidence, according to the parliamentary report.
The report said the changes come after years of legislative amendments delaying, suspending, or exempting capital gains tax on listed securities, most recently under Law No. 30 of 2023, as authorities faced practical challenges in implementing and collecting the tax.
Under the new law, a 0.05 percent (0.5 per thousand) stamp duty will be levied on the total value of buy and sell transactions involving securities listed on the Egyptian Exchange (EGX), whether Egyptian or foreign, with the tax split equally between buyers and sellers. The unified rate applies to both resident and non-resident investors.
For same-day buy-and-sell transactions, or day trading, the law introduces a reduced stamp duty of 0.025 percent (0.25 per thousand) on both buyers and sellers.
Parliament said the measure was introduced in coordination with the Financial Regulatory Authority (FRA) to help curb speculative trading and promote greater market stability.
The amendments also exempt licensed market makers from paying stamp duty on their transactions, recognising their role in improving market liquidity, facilitating trading, and reducing price volatility.
To avoid double taxation, the law excludes transactions involving unlisted securities from income tax under the standard rate stipulated in the Income Tax Law.
The legislation maintains the requirement for settlement entities to withhold the tax and remit it to the Egyptian Tax Authority within five days from the beginning of the month following the transaction. These entities will continue to bear joint liability with buyers and sellers for payment of the tax and any late-payment charges.
The amendments also repeal Article 5 of Law No. 199 of 2020, which had exempted resident investors from stamp duty on listed securities from January 2022, reflecting the government's decision to permanently adopt the proportional stamp duty system as an alternative to capital gains tax.
According to parliament's report, the legislation is part of broader efforts by the Ministry of Finance and the Egyptian Tax Authority to simplify tax procedures, improve collection efficiency, promote tax fairness, and strengthen Egypt's investment climate and capital market.
The capital gains tax on listed shares in Egypt was first introduced in 2014 at a rate of 10 percent on gains from shares traded on the Egyptian Exchange, replacing the previous stamp tax. It was then suspended in May 2015 after investor pushback, and that suspension was extended several times over the following years.
The tax was later set to be reintroduced from 1 January 2022, but implementation was postponed again, and the government announced in May 2024 that it would take effect starting from the March/April 2025 tax season.
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