Arab Finance: The House of Representatives approved on June 23rd in a plenary session a government-proposed bill amending certain provisions of the stamp tax law No. 111 of 1980, as per a statement.

Under the amendments, Article 83 bis of the stamp tax law will be replaced to impose a proportional stamp tax on the total value of all sales of securities listed on the Egyptian Exchange (EGP), whether Egyptian or foreign, without deducting any associated costs.

The bill sets the tax rate at 0.5 per thousand for both buyers and sellers, whether they are residents or non-residents, establishing a unified tax treatment for all market participants.

The amendments also reduce the stamp tax on same-day purchases and sales of securities to 0.25 per thousand for each of the buyer and seller. The reduction was introduced in coordination with the Financial Regulatory Authority (FRA) and is intended to regulate trading activity and limit speculative transactions.

In addition, transactions conducted by companies licensed to operate as authorized market makers under the Capital Market Law will be exempt from the stamp tax. The exemption recognizes the role of market makers in supporting liquidity, stabilizing prices, and reducing market volatility.

The bill maintains the requirement for the entity responsible for settling securities transactions to withhold the tax and remit it to the relevant tax authority within five days from the beginning of the month following the transaction. The settlement entity will also remain jointly liable with both the buyer and seller for payment of the tax and any applicable late-payment penalties.