Egypt Approves New Stamp Tax Structure for Stock Market Trades

Amendments to the stamp tax law governing stock market transactions have been approved by Egypt's House of Representatives, introducing a revised framework for trading activity on the Egyptian Exchange (EGX).

Under the new structure, a stamp tax of 0.5 per thousand will be applied to both buyers and sellers in transactions involving listed securities.

Intraday trades, where securities are bought and sold on the same day, will be subject to a lower rate of 0.25 per thousand for each side of the transaction, a measure aimed at supporting market liquidity and trading volumes.

The amendments also exempt investment fund certificates listed on the EGX from stamp tax following changes to Article 83 (bis), which applies the levy to the total value of sales of Egyptian listed securities while excluding listed fund certificates.

According to the new framework, the exemption is intended to avoid double taxation. Investment funds are already taxed as separate entities, and applying stamp tax to certificate holders would effectively duplicate the tax burden.

The legislation establishes separate treatment for standard transactions and same-day trades, while clarifying the tax status of listed investment fund certificates within Egypt's capital markets.