Egypt is swapping its capital gains tax on stock market transactions for a stamp duty and slashing value-added tax (VAT) on medical devices from 14 percent to 5 percent. Finance Minister Ahmed Kouchouk announced the moves during a meeting with Prime Minister Mostafa Madbouly and Deputy Prime Minister for Economic Affairs Hussein Issa, framing them as a second package of tax facilities intended to lure investment and reduce burdens on businesses.
Driving Volume on the Egyptian Exchange
The Ministry of Finance is launching a three-year investment incentive to encourage companies to list on the Egyptian Exchange. Minister Kouchouk stated the initiative is designed to guarantee an increase in trading volume and investments. The replacement of capital gains tax with a stamp duty serves to stimulate trading.
Cutting Costs for Medical Infrastructure
VAT on medical devices will drop to 5 percent. Further relief comes for kidney dialysis machines, as the ministry confirmed that inputs for kidney dialysis machines, filters, parts, and supplies will be entirely exempt from tax.
The government is also extending the suspension of VAT payments on machinery and equipment used in industrial production and medical devices to four years, up from two years.
Corporate Relief and Dispute Resolution
To ease the financial pressure on the business community, the solidarity contribution will be deducted from the tax base. Meanwhile, the government is extending the tax dispute resolution law until the end of next December to encourage the voluntary settlement of the largest possible number of disputes.
Fixed Rates and Family Exemptions
Real estate disposition tax for individuals stays fixed at 2.5 percent of a unit’s sale value, irrespective of the frequency of transactions. The new package does, however, carve out a full tax exemption for property transfers between spouses, children, and direct descendants.
A Shift Toward Customer Service
Minister Kouchouk described a transition in the tax environment toward a “customer service” culture centered on simplification and incentivization. He noted that tax offices are prepared to execute these measures with precision once the laws governing the second package are officially issued.
