Background & Details

  1. The Tax Authority has extended the filing deadline (March 31, 2020) for the income tax return for individuals to April 16, 2020. Corporate taxpayers, however, must file an extension request. The tax authority is also allowing taxpayers the option of remitting tax payments either electronically or through bank checks
  2. The government announced that the capital gains tax realized by Egyptian tax residents from disposals of securities listed on the Egyptian stock exchange would be deferred until December 31, 2021 (from the current “on hold” date of 16 May 2020). For non-residents, such capital gains are permanently exempt from tax. The rate of stamp tax imposed on total proceeds realized by tax residents of Egypt from the buying and selling of listed securities is reduced to 0.05% (from 0.15%), and the rate of stamp tax imposed on the total proceeds realized by nonresidents from the buying and selling of listed securities is reduced to 0.125% (from 0.15%). All “spot transactions” are exempt from stamp tax
  3. The suspension of administrative attachment has been announced for all taxpayers who have at least 10% payable taxes outstanding
  4. The rate of withholding tax imposed on dividend distributions made by companies listed on the Egyptian stock exchange would be reduced to 5% (from 10%) when the dividends are paid to both tax residents and non-residents