{"id":619458,"date":"2024-05-02T00:00:00","date_gmt":"2024-05-02T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/05\/02\/capital-gains-taxes-incoming-in-2025\/"},"modified":"2024-05-02T00:00:00","modified_gmt":"2024-05-02T00:00:00","slug":"capital-gains-taxes-incoming-in-2025","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/05\/02\/capital-gains-taxes-incoming-in-2025\/","title":{"rendered":"Capital gains taxes incoming in 2025"},"content":{"rendered":"

Good morning, folks. <\/strong>You\u2019ve done it. You\u2019ve made it until the end of the week and you have a well-deserved long weekend ahead. In case no one\u2019s told you, the public and private sectors and all banks will be off on Sunday and Monday in observance of Labor Day and Sham El Nessim next week.<\/p>\n

And that includes EnterpriseAM Egypt<\/strong>, which will be taking a break from your inbox until Tuesday morning, when we will be back with all the most important local business news to keep you up to date.<\/p>\n

We\u2019ve got a packed issue for you today<\/strong>, with news the capital gains taxes are coming in 2025, the narrowing of our net foreign asset deficit, ACUD\u2019s whopping tax bill for 2023 showing us just how big the company has become, and much, much more for you today. <\/p>\n

** DID YOU KNOW that we now cover <\/strong>Saudi Arabia<\/a><\/strong> and the <\/strong>UAE<\/a><\/strong>?<\/strong><\/p>\n

PSA-<\/p>\n

#1- Firms have a three-day, penalty-free extension to submit their tax returns: <\/strong>The Tax Authority has extended the deadline<\/a> for companies to submit their income tax returns by three days without penalties, provided that due tax has been paid within the legal deadline of 30 April.<\/p>\n

Help is at hand:<\/strong> Companies can receive free technical support from the authority\u2019s tax filing support centers and by calling up the hotline on 16395, Tax Authority head Rasha Abdel Aal said in a statement<\/a>.<\/p>\n

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#2- Expats can still transfer FX (but not apply) to import cars for another month:<\/strong> The cabinet gave the thumbs up<\/a> to a proposal from the Immigration Ministry to extend the duration for receiving FX transfers from Egyptian expats to import cars for a month. <\/p>\n

The rationale:<\/strong> There are many pending FX transfers from those who have already been accepted into the program. This is not an extension for the whole scheme that ended on Monday<\/strong> but only a 30-day window to process outstanding transfers and existing requests.<\/p>\n

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#3- There\u2019s a road safety hotline now for citizens reports:<\/strong> The General Authority for Roads and Bridges will receive citizens reports and complaints against road safety violations and encroachments on a new hotline and via Whatsapp, according to a Transport Ministry statement<\/a>. Citizens can now report such incidents by dialing 19487, or by sending photos or videos of road safety violations on the Whatsapp number 01207255273.<\/p>\n

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WEATHER- <\/strong>It\u2019s another partly cloudy morning followed by sunshine in Cairo today, with a high of 31\u00b0C and a low of 20\u00b0C, according to our favorite weather app.<\/p>\n

While in Alexandria<\/strong>, expect to see a high of 26\u00b0C and a low of 18\u00b0C.<\/p>\n

And over the long four-day weekend, <\/strong>expect to see temperatures staying at around 30\u00b0C in the capital. The weather for our friends on the Mediterranean will start to cool starting tomorrow and settle in the mid-twenties for the rest of the long weekend.<\/p>\n

EGX WATCH-<\/p>\n

<\/a> The EGX30<\/strong>bounced back 3.4% at yesterday\u2019s close<\/strong>, with all but two of the index\u2019s components ending yesterday\u2019s session in the green, after having dropped 6.0% the day before to a four month low. The index now sits at 25,271 and is back in green since the start of the year by 1.5% YTD.<\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- Gov\u2019t to collect capital gains tax starting 2025:<\/strong> The Madbouly government plans to start collecting taxes on capital gains incurred from trading EGX-listed financial securities starting March-April 2025, according to a cabinet statement<\/a>. <\/p>\n

The rationale:<\/strong> The executive regulations of the law governing capital gains tax aren\u2019t published yet, and there is yet to be a clear procedure to calculate and collect capital gains tax dues, according to cabinet spokesman Mohamed El Homsani. Until then, the Tax Authority and the Misr for Central Clearing, Depository, and Registry company will outline the procedures that need to be followed to calculate and collect capital tax gains for 2024. <\/p>\n

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<\/a> #2- AMOC stake sale could raise up to EGP 3.8 bn: <\/strong>The sale of the National Bank of Egypt and Banque Misr\u2019s combined 26.1% stake in EGX-listed Alexandria Mineral Oils Company (AMOC) could raise between EGP 3.5-3.8 bn, Alarabiya<\/a> reported, citing anonymous sources. <\/p>\n

Two final offers are currently on the table<\/strong>: The company has completed due diligence on an offer from a local investor and another from a Gulf investor, and is currently deciding on which one to choose, the sources said. The Egyptian General Petroleum Corporation is reportedly among the bidders, according to unconfirmed media reports<\/a>.<\/p>\n

The sale should be wrapped up in the next two months<\/strong>, with the sale expected to close by the end of 1H 2024, the sources told the outlet.<\/p>\n

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<\/a> #3-<\/strong>ACUD is one of the country\u2019s largest taxpayers<\/strong>: The Administrative Capital for Urban Development (ACUD) paid EGP 8 bn to the tax man in 2023, placing the company that was founded in only 2016 among the very top taxpayers in the country, a source at the Finance Ministry told Enterprise. <\/p>\n

ACUD will also soon appoint an IPO advisor: <\/strong>The developer of the new administrative capital will select and announce the international financial advisor for its planned IPO<\/a> in the third quarter this year, after the company wraps its pre-listing restructuring and due diligence, ACUD CEO Khaled Abbas told CNBC Arabia<\/a>.<\/p>\n

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#4- Alghanim to invest USD 300 mn in Berenice port:<\/strong> Kuwait\u2019s Alghanim<\/a>International<\/a> is reportedly looking to inject USD 300 mn worth of investments in the Berenice maritime port, Al Borsa<\/a> writes, citing sources it said have knowledge of the matter. The funds will go to redevelopment, operation, and maintenance works in the port. The Transport Ministry reportedly gave the group three to six months to complete the project\u2019s technical and financial studies.<\/p>\n

Refresher:<\/strong> Alghanim International signed an MoU last month<\/a> with Red Sea Ports Authorities to develop, manage, operate, maintain, and re-deliver Berenice Port benefitting from road networks connecting the port with other hubs along Egypt\u2019s Red Sea coast, cities in Upper Egypt, and the Arqin border crossing with Sudan.<\/p>\n

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Get Enterprise<\/b> daily <\/h4>\n<\/p><\/div>\n

The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n

Subscribe here<\/a> <\/div>\n<\/p><\/div>\n<\/p><\/div>\n

ATTENTION, EGYPT INVESTORS-<\/p>\n

<\/a> <\/p>\n

Foreign investors are falling in love with Egypt again\u2026<\/strong> Foreign investors we speak with (debt, equity, and strategic alike) have a growing appetite for Egypt. They\u2019re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that\u2019s taking shape after the float of the EGP, and its competitive advantages are clear to many of them: It\u2019s a massive consumer opportunity and a regional export hub of tomorrow.<\/strong><\/p>\n

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: <\/strong>Spark conversations about a future that we think is much brighter than so many in our community feel right now. Think of it as much-needed shock therapy combined with an early, actionable roadmap for those of us who are \u201clong Egypt.\u201d<\/p>\n

We\u2019ll be talking with you about the agenda over the coming couple of weeks. <\/strong>It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow\u2019s opportunities \u2014 and who aren\u2019t afraid to answer some tough questions. <\/p>\n

*** Interested in attending? <\/strong>Tap or click here<\/a><\/strong> to let us know.<\/strong> Seating is limited.<\/p>\n

FACT CHECK-<\/p>\n

<\/a>Gabal El Zeit wind power station sale rumors denied: <\/strong>The Madbouly government denied rumors circulating on social media platforms about the sale of the Gabal El Zeit wind farm to foreign investors at a price far below its construction costs, according to a cabinet statement<\/a>.<\/p>\n

Remember: <\/strong>Actis reportedly wrapped up due diligence<\/a> on the 580-MW wind farm in February and the IMF thinks<\/a> stake sales of the Gabal El Zeit and Zafarana wind farms will be finalized before the end of June.<\/p>\n

NEWS TRIGGERS- <\/p>\n

It\u2019s the second day of May \u2014 <\/strong>here are the key news triggers to keep your eyes on in this month:<\/p>\n