Egypt Eyes Sharemarket Tax

March 6, 2017 Taxation in Egypt

Sharemarket tax in EgyptCAIRO – Sharemarket transactions in Egypt are set to become more expensive, as the government comes closer to implementing its long-debated stock stamp tax.

Over the course of this week the Cabinet of Egypt is expected to receive the proposed legislation for a new stamp tax to be applied on stock market transactions.

It is currently expected that the tax would be levied at a rate of 0.125 percent on any transaction on the stock market, rising to a rate of 0.15 percent in its second year of operation, and 0.175 percent in its second year of operations.

Based on the number and size of transactions seen on the stock market presently, the tax could raise as much as EGP 1 billion per year.

It is not expected that the tax will result in a drop in the number of value of transactions, as the stamp tax is set at a low rate, and implemented incrementally.

The Egyptian stock market has fluctuated significantly with any news of the tax’s implementation, although traders did seem to be optimistic about the latest rate proposals, which are lower than originally announced.

The tax has been discussed and debated within the Egyptian government and among traders since its first announcement in September 2016.