Arab Finance: The Egyptian Tax Authority (ETA) has approved a new package of tax incentives for the securities sector as part of the second phase of its tax facilitation reforms, Rasha Abdel Aal, Head of the ETA, announced.

The new measures were introduced through close coordination between the Ministry of Finance, the ETA, and the Financial Regulatory Authority (FRA). They aim to stimulate capital market activity, encourage investment, and drive economic growth.

The reforms include amendments to the Income Tax Law No. 91 of 2005 and the Stamp Tax Law No. 111 of 1980, targeting the elimination of double taxation on dividend distributions.

Under the amendments of the second tax facilitation package, the EGX-listed companies will be eligible for a cash incentive, subject to a set of qualifying criteria.

The changes also exempt capital gains generated from trading EGX-listed securities from income tax, with such transactions remaining subject only to the proportional stamp tax stipulated under the Stamp Tax Law.

In order to enhance transparency and ensure greater tax fairness, the amendments remove sales of unlisted securities from the scope of the stamp tax, making them subject solely to income tax. The move is intended to permanently eliminate double taxation on these transactions.

Moreover, the reforms exempt market maker activities from stamp tax, underlining their role in supporting liquidity and increasing trading volumes on EGX.

It is worth highlighting that Egypt's tax revenues jumped by 28% during the fiscal year (FY) 2025/2026 without any new burdens.