The Clap
Starting January 2022, a 10% tax will be imposed on capital gains in the stock market.
Claps Class
Capital gain is defined as the difference between the selling value and the acquisition cost and any commission paid.
Who is affected🤷
EGX board member Ahmed Abou El-Saad said that the idea of applying taxes on a small-sized emerging market will have a negative impact, and could lead to market contraction.
Abou El-Saad pointed out that the ministry of finance did not coordinate with the EGX administration in determining the date of issuing this treatment, which coincided with the application of the new price limits, which may lead to aggressive movements in the market this week.
Why is this important🤔
The capital gains tax controversy has been around for the past six years. In 2015, the Egyptian government decided to impose a 10% tax on capital gains in the stock exchange, but the law didn’t go through.
Since 2015, the capital gains tax law has been postponed six times. It is worth mentioning that the stamp tax on the purchase and sale of securities was reduced in March 2020 to 0.5 per 1,000.
