Parliament approves amendments to the income Tax Law

CAIRO,30 May,2017:The parliament passed on Monday a bill of amendment on some provisions of the income Tax Law no. 91 of 2005. In addition, the parliament approved amendments on the Stamp Duty Law no. 111 of 1980.

The chairperson of the Budget and Planning Committee, MP Hussien Eissa, said during the session that the amendments aim to boost the Egyptian economy by activating the stock market and attracting capitals to encourage more investments. The amendments extends the term of the suspension of tax on capital gains resulting from dealing in money bills in the stock market for another three years until 2020.

Article 1 of the law states:

The provisions stipulated in Law No. 53 of 2014 shall continue to be suspended through amending certain provisions of the Income Tax Law no. 91 of 2005 in respect to taxation on capital gains resulting from trading with money bills listed in the stock market for a period of 3 years.
The collection of the tax referred to in the preceding paragraph shall be exceeded from 17 May 2017 until the date of implementation of this Law.

Article 2 states:

The following text replaces article 53 of the income Tax Law No. 91 of 2005: Capital earnings gained from reevaluation shall be taxed in the event of a change in the legal status of the person being considered. The legal person shall be subject to tax deferral provided that the assets and liabilities are recognized at their carrying amount at the time of change in the legal status for purposes of calculating the tax. The depreciation of the assets and the transfer of provisions and reserves shall be calculated in accordance with the established rules established before making this change.

To postpone taxation, the shares resulting from change in the legal status shall not be disposed for three years following the date of changing the legal status. Postponed tax is payable in case of any other change in the legal status of the legal person or if it has expired for any reason.

Article 3:

Two articles to be added to the Stamp Duty Law no. 111 of 1980 as follows: A tax shall be imposed on the total tax of purchase or sale of money bills of all types, whether Egyptian money bills or foreign money bills or restricted money bills by the labor market, without any deduction or added costs.

Article (4):

Any contradictions with the provisions of this law shall be canceled and the Minister of Finance shall issue the implementation decisions.