Prime Minister Dr. Mostafa Madbouly held back-to-back meetings yesterday, where he stressed the importance of providing a package of incentives to support the stock market & improve the investment & business environments.
The most notable outcomes of the meetings were
- The implementation of a capital gains tax
- Deduction of all trade-related & custody expenses
- Abolition of stamp tax on stock market transactions for resident investors
- No tax files will be opened for individuals investing in the stock exchange, & the clearinghouse is responsible for calculating & collecting tax after deducting expenses
- Reducing tax on realized capital gains from IPOs by 50% for the first two years
- Another highlight is that taxes will be calculated based on the higher of acquisition cost of a stock or the stock’s closing price by the end of the year. This allows investors the chance to pay fewer taxes in case of price appreciation, & maximize their return on investment.
