Egypt denies imposes new taxes on EGX: Finance Minister

BY

Mon, 06 Sep 2021 - 12:20 GMT

FILE- Employees in the EGX following performance of the trading session on December 12, 2017

FILE- Employees in the EGX following performance of the trading session on December 12, 2017

CAIRO- 6 September 2021: The Egyptian Minister of Finance, Mohamed Maait, confirmed that no new taxes have been imposed on the stock exchange, denying any intention to do so.

 

The Egyptian minister said in a statement, Monday that the imposition of laws can only be done through legislation approved by the Cabinet and approved by the House of Representatives, and not by ministerial decisions.

 

The minister explained that Ministerial Resolution No. 428 of 2021, which came in implementation of the provisions of the laws in force, and which are now in force, includes only the rules and instructions for the tax treatment of capital gains resulting from the disposal of securities, shares and treasury bills, as well as the stamp tax on dealing in securities.

 

He pointed out that it aims to clarify and simplify the procedures and tax treatment of the various traded securities to facilitate for financiers and lay the foundations for transparency, in a way that contributes to spreading tax awareness.

 

Maait stated that this guide is not the first of its kind, but another guideline has already been issued explaining the treatment and procedures to be followed to pay the tax on capital gains for non-residents for unrestricted shares.

 

He pointed out that the guideline issued by Ministerial Resolution No. 428 of 2021 includes the chronology of the amendments to the Income Tax Law promulgated by Law No. 91 of 2005, as well as the Stamp Tax Law promulgated by Law No. 111 of 1980.

 

“Up to Law No. 199 of 2020, the method, date and prices for the income tax to apply to capital gains resulting from the disposal of securities and treasury bills, whether restricted or not on the Egyptian Stock Exchange, and the method, date and prices of the relative stamp tax on the sale and purchase of securities,” Maait stated.
 

He stated that it included an explanation of legal terms and the definition of capital gains subject to income tax in relation to securities of all kinds, and legal responsibility in accordance with the provisions of the Income Tax Law.

 

He added that this guideline comes within the Ministry of Finance's approach to supporting transparency and simplifying and clarifying procedures for financiers, which is what financiers and dealers always demand.

 

The minister stressed that the indicative guide aims to explain the correct tax treatment in a way that contributes to sparing financiers dealing in securities any problems or falling under the law; As a result of lack of clarity or wrong application of the tax.

 

A statement by the Ministry of Finance stated that this guide was praised by the business community, which confirmed that this approach is very good, as it meets their need to know the proper rules for tax treatment of capital gains, as it contains detailed explanations that contribute to simplifying the procedures, facilitating their absorption, and ensuring the accuracy of their application.

 

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