The decision by the Finance Ministry telling Misr for Central Clearing, Depository, and Registry (MCDR) not to collect capital gains tax on stock market transactions enforces a stay on the tax’s application until the House of Representatives reconvenes on 29 May, sources told Al Mal. The Ministry’s decision effectively waits for parliament to vote on the capital gains tax law fully and implement it. The parliament’s planning and budget subcommittee had amended the income tax law to include a clause allowing for not collecting capital gains tax from 17 May until the final law comes into effect. Capital gains tax is expected to be levied at 0.125% on each side of the transaction from when the law comes into effect to 30 May 2018, and increased gradually from there. Al Borsa, on the other hand, reports that EFSA has asked investment funds to set aside the payable capital gains taxes starting from 17 May, in order to be able to calculate the funds’ net asset values accurately.

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