Egypt Adopts Stamp Duty Instead of Capital Gains Tax on Stock Exchange Trades

Egypt's citizens' budget for fiscal year 2026-2027 includes shifting to stamp duty instead of capital gains tax on stock exchange trades, along with reducing the tax rate for non-residents to 0.5 per thousand from 1.25 per thousand, a change impacting every transaction executed in the market.

The measures include a three-year incentive to encourage listings on the Egyptian Exchange, alongside measures aimed at avoiding double taxation on dividends, thereby preventing double collection from shareholders upon receiving profits.

On another front, it was decided to reduce value-added tax on medical devices to 5% from 14%, a measure that lowers the cost of medical supplies for consumers and facilities operating in the health sector.

In an effort to ease burdens on small businesses, the budget offers a simplified sectoral tax regime for businesses with an annual turnover of up to 20 million EGP, expanding the registered taxpayer base under a single tax threshold and reducing compliance costs.

What do these terms mean?

Stamp Duty: A fee levied on every trading transaction on the stock exchange regardless of profit realization. Capital Gains Tax: A tax on the profit realized from selling shares. Value-Added Tax (VAT): A consumption tax added to the price of a good or service.