CAIRO: Investors in Egypt will benefit from its government's new move to abolish stamp duty on stock market transactions, in addition to reducing tax on profit realized in new offerings by 50 percent for first two years.
This comes as part of the set of stock market incentives presented by Prime Minister Mostafa Madbouly in coordination with the Ministry of Finance, the Egyptian Exchange, the Financial Regulatory Authority, and the securities industry parties, Nader Saad, the Egyptian Cabinet Spokesperson stated.
The incentives aim to boost the competitiveness of the stock market and improve the investment and business environment for individual investors.
It is hoped they will also encourage listed companies to acquire private ones, consolidation and growth.
The move includes the abolition of the stamp duty on stock market transactions for the resident investors, and deducting all expenses related to trading and preserving shares and other tax bases.
This is in addition to reducing the current 22.5 percent tax on the profit achieved in the new offerings at a rate of 50 percent in the first two years of the issuance of the law.
It was also agreed that no tax files would be opened for individuals investing in the stock exchange.
The tax rate for individual investors through stock funds has also been reduced to 5 percent on the profit achieved.
