Egypt’s Parliament has approved amendments to the country’s stamp tax law aimed at revising the taxation framework for securities transactions on the Egyptian Exchange, introducing a unified tax rate for investors while reducing charges on same-day trading activities.
The House of Representatives approved the government-proposed bill during a plenary session on June 23, amending provisions of Stamp Tax Law No. 111 of 1980, according to a parliamentary statement.
Under the approved changes, Article 83 bis of the law will be replaced to impose a proportional stamp tax on the total value of all securities sales conducted on the Egyptian Exchange, whether involving Egyptian or foreign-listed securities.
The tax will be calculated on the full transaction value without deducting any related costs, according to the amendments.
The new framework sets the stamp tax rate at 0.5 per thousand for both buyers and sellers, regardless of whether they are residents or non-residents of Egypt.
More Read
The government said the unified rate is intended to establish equal tax treatment for all market participants and create a clearer structure for securities transactions.
The amendments also introduce a lower stamp tax rate for same-day purchases and sales of securities, reducing the charge to 0.25 per thousand for both the buyer and seller.
The reduction was introduced in coordination with the Financial Regulatory Authority (FRA) and is aimed at improving market activity while addressing concerns over speculative trading practices.
Officials said the adjustment would help create a more balanced environment for investors by reducing transaction costs associated with short-term trading while maintaining tax collection mechanisms.
The revised law also provides an exemption from stamp tax for transactions carried out by companies licensed to operate as authorised market makers under Egypt’s Capital Market Law.
The exemption recognises the role of market makers in supporting liquidity, improving price stability and reducing excessive volatility in financial markets.
Market makers typically help ensure smoother trading by providing continuous buying and selling opportunities, especially in less active securities.
The amendments maintain existing requirements for the entity responsible for settling securities transactions to withhold the applicable tax and transfer the proceeds to the relevant tax authority.
The settlement entity will be required to remit the collected tax within five days from the beginning of the month following the transaction date.
More Read
The entity will also remain jointly responsible with both buyers and sellers for payment of the tax, as well as any penalties resulting from delays in payment.
The legislative changes come as Egypt seeks to strengthen its capital markets and improve the competitiveness of the Egyptian Exchange by balancing government revenue needs with investor participation.
Financial authorities have in recent years introduced reforms aimed at increasing market transparency, attracting domestic and foreign investment and improving trading conditions.
Analysts say adjustments to transaction taxes can influence investor behaviour, particularly in equity markets where trading costs affect liquidity and participation.
By lowering taxes on same-day transactions while maintaining a broader tax structure for securities sales, the government aims to support market development while preserving tax revenues.
The approved amendments will now move forward through the required legal procedures before taking effect, marking another step in Egypt’s ongoing efforts to modernise its financial and regulatory framework.
