2 Min Read
CAIRO, May 30 (Reuters) - Egypt's parliament has approved a stamp duty that will be imposed on stock exchange transactions for both buyers and sellers as an alternative to a capital gains tax, which will remain suspended for three years.
Below are some facts about Egypt's stamp duty:
* The decision was approved by cabinet in March of this year but must still be ratified by President Abdel Fattah al-Sisi. The new stamp duty is set at 1.25 Egyptian pounds ($0.0696) per 1,000 for this year (2017-2018), and rising to 1.5 pounds in the second year and 1.75 in the third. * In May 2013 Egypt imposed a stamp duty on stock exchange transactions set at 1 pounds per 1,000, collecting more than 350 million Egyptian pounds. * In 2014, Egypt suspended the stamp duty and imposed a 10 percent tax on capital gains in July of the same year. * In May 2015, Egypt then decided to halt the capital gains tax for two years following strong objection from investors. * The government extended the capitals gains tax suspension in March for another three years (until May 16, 2020). * The stamp duty will now impose a levy of 3 pounds per 1,000 for investors buying or selling more than a third of a company’s stocks. ($1 = 18.1000 Egyptian pounds) (Reporting by Ehab Farouk; Writing by Arwa Gaballa; Editing by Alison Williams)