CAIRO: The Cabinet has approved an amendment to the income tax law, reducing the tax from 30 to 22.5 percent and suspending the capital gains tax for two years, Youm7 reported Tuesday.
The decision is yet to be ratified by President Abdel Fatah al-Sisi; it is expected to be applied before the end of July, Youm7 quoted Minister of Investment Ashraf Salman as saying.
“The government intends to list three companies in the stock market with a cost of nearly $900 million before 2016,” said Salman in a statement Monday.
He added that the government will finish determining the gross domestic product of each governorate for the fiscal year 2015/16 this week, for the first time in Egypt, as the GDP reports have been on the entire without a breakdown.
The draft law issued by Sisi to amend income tax law is one of a group of reforma measures adopted to cope up with the new budget, Minister of Finance Hany Kadry said in a statement June 5.
Kadry said that the new legislative amendments make distributing banknotes and capital profits subject to income tax. He added that they cancel the stamp tax, which is applied now at 0.001 percent of the value of selling or buying banknotes.
The amendments impose a 10 percent tax on the net profit of every portfolio that has more than 150,000 EGP at the end of every year, he continued.