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Egypt: Tax relief provisions (COVID-19)

Egypt: Tax relief provisions (COVID-19)

The Egyptian Cabinet announced tax measures intended to provide relief from the economic impact of the coronavirus (COVID-19) pandemic.

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For instance, the capital gains tax realized by Egyptian tax residents from disposals of securities listed on the Egyptian stock exchange are deferred until 31 December 2021 (from the current “on hold” date of 16 May 2020). For non-residents, such capital gains are permanently exempt from tax.

The rate of withholding tax imposed on dividend distributions made by companies listed on the Egyptian stock exchange is reduced to 5% (from 10%) when the dividends are paid to both tax residents and non-residents.

The rate of stamp tax imposed on total proceeds realized by tax residents of Egypt from the buying and selling of listed securities is reduced to 0.05% (from 0.15%), and the rate of stamp tax imposed on the total proceeds realized by non-residents from the buying and selling of listed securities is reduced to 0.125% (from 0.15%). All “spot transactions” are exempt from stamp tax.

Read an April 2020 report (English and Arabic) [PDF 1.2 MB] prepared by the KPMG member firm in Egypt

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