The committee will prepare recommendations on how taxes on capital market activities should be applied, calculated, and enforced while improving coordination among the three entities. It will digitally link ETA and EGX data, prepare joint guidance and manuals on tax accounting for listed and unlisted securities and investment funds, and establish a clear classification for all funds.
It will also review previously issued tax instructions and update them to reflect applicable laws and market developments.
The initiative aims to support the capital market, strengthen trust between the ETA and businesses operating in the non-banking financial sector, build institutional capacity, and improve services for investors.
The total financing provided by FRA-regulated non-banking financial institutions reached EGP 1.4 trillion by the end of 2025, accounting for about 54 percent of Egypt's financial sector.
The move is part of the government's broader efforts to enhance transparency, improve tax administration, and deepen capital markets to attract long-term financing as Egypt's economy grows and the number of investors increases despite recent regional conflict.
As of March 2026, Egypt's capital market had between 250,000 and 300,000 investors, with around 180,000 new investors expected to join the market this year.
Egypt has also been working to attract more private investment, improve corporate governance, and develop its stock market by maximizing returns on state-owned assets through its initial public offering (IPO) and divestment programme to support fiscal reform and economic restructuring toward a more private sector-led growth model.
The committee will also examine how provisions of the Capital Market Law affect taxation in practice and propose appropriate tax treatment where needed. It will also draft a cooperation protocol to train staff from the three entities and facilitate the exchange of expertise on legislative frameworks.
Last week, the FRA announced plans to launch a training programme for executives of state-owned companies preparing for stock market listings to help them meet listing and offering requirements under the latest regulatory frameworks.
The Capital Market Law channels savings into investment through the issuance and trading of equities, bonds, and sukuk across various sectors.
The law was amended in December 2025 to allow the FRA to study the possible conversion of the EGX from a public entity into a joint-stock company in preparation for a partial public listing. The amendment would give exchanges greater flexibility by allowing them to operate as FRA-licensed joint-stock companies, helping expand investment and trading volumes.
The committee will also determine mechanisms for collecting taxes on securities and investment fund transactions. This supports the ETA's efforts to reduce litigation and expedite the collection of state dues through the tax dispute settlement framework, which has been extended until the end of 2026 to help resolve disputes with taxpayers.
Egypt previously replaced the capital gains tax on transactions involving listed securities with a unified proportional stamp duty to simplify tax collection, support the stock market, and advance the government's tax reform agenda.
The committee will be chaired by Reda Abdel-Moaty, senior adviser to the FRA chairman, and will include representatives from the FRA, ETA and EGX. Other experts may be invited to assist the committee, but they will not have voting rights.
The committee will also have a technical secretariat comprising one representative each from the FRA's Trading Department, the EGX, and the ETA.
Short link: