Trading Stamp Duty Replaces Capital Gains
Egypt’s Ministry of Finance has unveiled a second package of tax reforms aimed at fueling investment and easing the private sector’s financial load. Minister of Finance Ahmed Kouchouk announced the shift, which moves the national tax environment toward a “customer service” model centered on simplification.
A centerpiece of the plan is a three-year incentive program for companies listing on the Egyptian Exchange (EGX). To boost trading volumes, the government is replacing the capital gains tax on stock market transactions with a stamp duty. Minister Kouchouk and Prime Minister Mostafa Madbouly framed the move as a direct mechanism to lower transaction costs and spur active participation in local equity markets.
VAT Relief for Healthcare and Industry
The ministry is doubling the suspension period for Value-Added Tax (VAT) on machinery and equipment, extending it from two years to four. This move is designed to bolster industrial production. Healthcare providers will see similar relief. The government is slashing VAT on medical devices from 14 per cent to 5 per cent. Furthermore, inputs required for kidney dialysis machines—including filters and associated parts—will be granted a total VAT exemption.
Streamlining Compliance and Disputes
For the broader business community, the government is adjusting the solidarity contribution, which will now be deducted from the tax base to reduce total tax liability. Additionally, the government is extending the tax dispute resolution law until the end of December. This window allows taxpayers to settle pending disputes with the tax authority voluntarily. Minister Kouchouk noted that tax offices are preparing for the rollout, which will take effect once the relevant legislation is officially enacted.
New Exemptions for Property Transfers
The reform package also clarifies the status of real estate transactions. While the disposition tax for individuals remains fixed at 2.5 per cent of a unit’s sale value, the government has introduced a specific exemption: transfers of property between spouses, children, and direct descendants are now fully exempt. The Ministry of Finance maintains that these adjustments will foster a more flexible, incentivized tax environment. Officials confirmed the ministry is prepared to execute these policies as soon as the legal framework is finalized.
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