KPMG Hazem Hassan in Egypt provides an overview of significant changes to Egypt’s tax laws, including new capital gains tax rules and changes to the stamp tax law.
The tax rate on capital gains from trading in securities listed on the Egyptian Exchange is 10 percent, without deduction for costs. However, this provision was suspended for 2 years starting on 17 May 2015, and a recently issued law decree extends the suspension for 3 more years, subjecting the total value of such transactions to stamp tax.
Under recent Egyptian Stamp Tax Law amendments, the tax applies to the sale and purchase of shares in companies incorporated in Egypt (whether or not listed) and in companies incorporated outside Egypt whose shares are listed in Egypt. Stamp tax rates range from 0.25 percent to 0.6 percent of the total consideration for the sale/purchase. The applicable rate is based on:
The purchaser and seller are jointly liable for ensuring the tax is paid (but not both parties for the same amount).