Egypt’s new tax measures to boost stock market liquidity
Egypt has rolled out its second tax incentives package, introducing new measures to attract investment into the stock exchange.
The government will replace capital gains tax with a stamp duty to boost institutional participation in the stock market, the Egyptian cabinet statement said, quoting finance minister Ahmed Kouchouk.
Working in coordination with the Financial Regulatory Authority, the ministry will grant tax incentives to encourage companies to list on the stock exchange over the next three years to help increase trading volume and investment activity.
Kouchouk said the government is planning to review the law on ending tax disputes, as well as to improve the internal and dispute-resolution committees to accelerate case handling.
The first package was launched last year to provide more liquidity to businesses, expedite the resolution of long-standing tax disputes, and offer improved, simplified services.
Moreover, legislative amendments will be made to exempt profit distribution for Egyptian companies affiliated with an Egypt-based holding company, the statement said.
The new tax package is designed to make the tax system simpler, faster, and fairer for all taxpayers, Kouchouk said.
He said the government is preparing a legislative amendment to the Unified Tax Procedures Law to allow the issuance of a temporary tax card for four months to speed up company incorporation.
The government will lower the value-added tax (VAT) on medical devices to 5 percent from the current 14 percent, with full VAT exemption for components and supplies used in dialysis and kidney filters.
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