Second stage of stamp duty applied on EGX

CAIRO – 4 June 2018: The second stage of stamp duty has been applied on the Egyptian Exchange’s (EGX) transactions starting June 1.
The duty has been raised to LE 1.5 per 1,000 from LE 1.25 per 1,000 during the first stage.

In 2017, the Cabinet also approved a stamp duty on stock exchange transactions for both buyers and sellers set at LE 1.25 per 1,000 for the first year of the tax’s introduction, rising to LE 1.5 in the second year and LE 1.75 in the third.

It also imposes a levy of LE 3 per 1,000 for investors buying or selling more than one third of a company’s stocks.

The stamp duty law issued by Law No. 111 of 1980 stipulates that "a stamp duty shall be levied on the total value of purchases or sales of securities of all types, whether Egyptian or foreign securities, listed or unlisted on the stock exchange without deduction of any costs.”

The stamp duty was applied in June 2017 after President Abdel Fatah al-Sisi had ratified its draft law.
Ministry of Finance targeted revenues of LE 1-1.5 billion during the first year of applying the stamp duty.

The Egyptian Exchange (EGX) ended Sunday in green, and market capitalization gained LE 8.8 billion ($490.9 million) amid Egyptian and Arab purchases.

The benchmark EGX30 jumped 1.59 percent, or 260.78 points, to close at 16,675.31 points.

The equally weighted index EGX50 climbed 0.88 percent, or 24.94 points, to reach 2,844.68 points.

Meanwhile, the small and mid-cap index EGX70 rose 0.25 percent, or 2.10 points, closing at 844.76 points, and the broader index EGX100 increased 0.77 percent, or 16.54 points, to close at 2,154.78 points.