Capital Gains Delayed in Egypt, Markets Rally
May 19, 2015 Taxation in Egypt
CAIRO – The stock market in Egypt has rocketed upward after the government dropped its controversial capital gains tax.
On May 18th the government of Egypt announced a delay to the implementation of a capital gains tax on profits made from the sale of stocks in the country.
The tax, which was part of a wider government effort to broaden the tax base and to boost revenues, has now been delayed by two years.
The tax has caused significant controversy in Egypt, as the government took more than 10 months to publish details on the proposed measure after having passed it earlier in 2014.
Opponents of the tax claimed that the measure caused severe uncertainty among investors, while simultaneously raising costs and reducing profits.
Immediately following the announcement of the delay, the national stock market jumped by 3.3 percent, rising to 6.5 percent by the end of trading for the day.
Photo By: Andreas Poike