Arab Finance: Misr for Central Clearing, Depository and Registry (MCDR) has begun implementing its obligations to withhold and remit stamp duty on transactions executed on the Egyptian Exchange (EGX) as of the July 29 trading session, in line with recent amendments to the tax framework governing the capital market, as per an emailed press release.

The implementation follows legislative amendments that abolished the capital gains tax on transactions involving securities listed on the EGX and reinstated the stamp duty. According to MCDR, the changes are intended to simplify tax application and collection procedures, enhance the clarity and stability of tax treatment, and support the efficiency of the capital market.

Under the amended law, a stamp duty of 0.5 per thousand of the total transaction value is imposed on both buyers and sellers of securities listed on the EGX. The rate is reduced to 0.25 per thousand for both buyers and sellers in same-day purchase and sale transactions, whether involving residents or non-residents. Transactions involving investment instruments listed on the exchange, as well as transactions carried out by companies licensed to conduct market-making activities under the Capital Market Law, are exempt from the tax.

As settlement for trades completed on August 2 had already been finalized, stamp duty deductions will begin with settlements processed on August 3, 2026.

MCDR added that stamp duty on regular trading transactions executed on July 30 will be deducted from settlements on August 3.

It also noted that stamp duty differences arising under the amended law will be calculated for regular trading transactions executed on July 29, as well as same-day purchase and sale transactions conducted on July 29 and July 30.

Brokerage firms will be notified in advance of any amounts to be deducted or credited, as applicable, in accordance with the law and the applicable settlement mechanisms, MCDR said.

The company added that its operational systems are ready to implement the amended provisions and that it will continue coordinating with relevant parties to ensure the accurate and effective application of the new rules while supporting the efficiency and stability of the clearing and settlement system in the Egyptian capital market.

It is worth mentioning that MCDR reported net profits of approximately EGP 1.95 billion in 2025, marking a 15% year-on-year (YoY) increase from EGP 1.69 billion in 2024.