Egypt exempts bonus shares from new tax

CAIRO: Egypt will exempt bonus shares from a new 10 percent capital gains tax on profits made on the stock market, the country’s Finance Minister Hany Dimian said.

Dimian said Thursday that Egypt had approved the introduction of the tax, part of the first phase of income tax reforms that the government expects to bring in 10 billion Egyptian pounds ($1.4 billion).

“Distributions of bonus shares will be exempt from the taxes,” Dimian told Reuters late Thursday after a meeting with government finance officials.

Stock market profits are currently tax-free, and Dimian has said the new tax will not be retroactive.

Egypt is eager to encourage investment but is also trying to find additional revenue sources after years of economic and political turmoil since a popular uprising toppled President Hosni Mubarak in 2011.

Abdel-Fattah al-Sisi, the former army chief who toppled Egypt’s first freely elected leader after protests last year, was elected president with over 90 percent of the vote this week, according to initial results.

A version of this article appeared in the print edition of The Daily Star on May 31, 2014, on page 4.




Your feedback is important to us!

We invite all our readers to share with us their views and comments about this article.

Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.

Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (

comments powered by Disqus



Interested in knowing more about this story?

Click here