Arab Finance: The Financial Regulatory Authority (FRA), the Egyptian Exchange (EGX), and the Egyptian Tax Authority (ETA) agreed to form a joint coordination committee to strengthen cooperation among the three entities, as per a statement.

During a meeting between FRA Chairman Islam Azzam, Head of ETA Rasha Abdel Aal, and Chairman of EGX Omar Radwan, they discussed strengthening cooperation and coordination to support the efficiency of the capital market and improve the business environment, particularly in sectors regulated by the FRA, as part of efforts to enhance the competitiveness of the Egyptian market.

Azzam reaffirmed the FRA's commitment to coordinating with all relevant state institutions within the investment ecosystem, emphasizing the importance of aligning the roles of regulatory and executive bodies to remove obstacles for investors while supporting market stability and development.

He also stressed the need to strengthen trust and partnership between the tax administration and the business community in the non-banking financial sector, alongside expanding cooperation between the FRA, the EGX, and the ETA on training and capacity building covering the latest legislative and regulatory frameworks.

He added that improving the capabilities of government personnel responsible for dealing with markets and investors remains a key priority under the agreed mechanisms.

The discussions concluded with an agreement to establish a working group that will examine and implement a range of proposed cooperation mechanisms. These include forming a joint coordination committee, signing a detailed cooperation protocol on mutual training and capacity building, and preparing guidance manuals covering the regulatory and operational frameworks governing capital markets.

Abdel Aal welcomed the proposed coordination mechanisms, saying they would facilitate the exchange of expertise and information while helping tax personnel better understand investment activities in the non-banking financial sector and their accounting treatment.

She noted that this would improve the efficiency of tax accounting procedures and strengthen taxpayer confidence, drawing a comparison with the joint committees the Tax Authority has previously established with chambers of commerce for other activities.

Radwan, meanwhile, outlined several proposals aimed at encouraging investment in the stock market and investment funds. These included clarifying the tax classification of existing and future funds, explaining the accounting mechanisms for certain types of taxes, and defining the tax-related responsibilities of each service provider.

Participants also reviewed additional proposals to encourage the establishment of investment funds, strengthen ongoing coordination between the FRA, the EGX, and ETA on tax matters affecting capital market participants, and expand reciprocal training programs, with the FRA providing training for ETA staff and the tax authority offering similar programs for entities operating in the non-banking financial sector.