More details emerge on the planned stamp tax on EGX transactions: The Finance Ministry is looking to collect some EGP 722 mn from the incoming stamp tax on EGX transactions in the upcoming fiscal year, as part of a broader plan to collect some EGP 61 bn from stamp duties through various channels, a government source told EnterpriseAM.

REMEMBER- A government source told EnterpriseAM earlier this year that the long-awaited and repeatedly delayed capital gains tax on EGX transactions may never come, with the cabinet having held discussions over alternatives to it — particularly a stamp tax on EGX transactions.

The timeline: The draft law for the implementation of the stamp tax on EGX transactions is currently in its final stages of preparation ahead of being submitted to the House of Representatives for final approval, upon which it would replace the long-delayed capital gains tax on bourse transactions.

The stamp tax will be imposed on daily buy and sell transactions, and Misr for Central Clearing, Depository and Registry (MCDR) will collect it on behalf of the Finance Ministry at a rate of 1.25 per 1k from both resident and non-resident investors, whether they are buyers or sellers.

What this means for tax returns: Returns that have been submitted include the income they made on their entire investment portfolio up until last December, as the capital gains tax law was still in effect up to that point. Should the new law replacing the capital gains tax with a stamp tax state pass and be applied retroactively — meaning that it would cover past transactions as well — investors who already paid capital gains tax on their 2024 earnings might be able to get a refund.

This will serve to simplify tax procedures, the source said, adding that calculating the tax on buying and selling will help the government reach its targeted revenues.

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