Egypt launches tax measures aimed at boosting stock liquidity
- More equity investment sought
- Stamp duty to replace capital gains tax
- Incentives to encourage listings
Egypt has rolled out a second package of tax incentives, introducing measures aimed at attracting investment into the domestic stock exchange.
The government will replace capital gains tax with a stamp duty to boost institutional participation in the bourse, the Egyptian cabinet said in a statement, 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 plans to review the law on ending tax disputes, as well as to improve a dispute-resolution committee 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.
Further reading:
- Egypt turns to short-term borrowing as debt piles up
- Limited hope for economic change as Egyptians vote
- Non-oil industry and tourism push up Egypt’s GDP
The new package is designed to make the tax system simpler, faster and fairer for all, Kouchouk said.
The government is preparing an amendment to the Unified Tax Procedures Law to allow the issuance of a temporary tax card for four months to speed up company incorporation, he said.
The government will lower the value-added tax on medical devices to 5 percent from 14 percent, with full VAT exemption for components and supplies used in dialysis and kidney filters.
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