Egypt’s House of Representatives has given final approval to amendments to the country’s stamp tax law governing stock market transactions. This entails introducing a revised tax framework aimed at balancing government revenue with market liquidity..

Why You Should Care

The changes reduce the tax burden on intraday trading and exempt listed investment fund certificates from stamp tax, making some forms of investing more attractive.

 The amendments also address concerns around double taxation for investment funds, which are already taxed as separate entities, while signaling continued efforts to encourage participation in Egypt’s capital markets.

The Details

Under the new rules, a stamp tax of 0.5 per thousand will apply to both buyers and sellers in transactions involving listed securities.The amendments also reduce the stamp tax on same-day purchases and sales of securities to 0.25 per thousand for each of the buyer and seller. This move aims to support trading activity and liquidity in the Egyptian Exchange (EGX). 

The amendments also exempt investment fund certificates listed on the Egyptian Exchange from the tax. The exemption follows changes to Article 83 (bis), which now applies the tax to the total value of sales of Egyptian listed securities while excluding listed investment certificates.

The exemption was introduced to prevent double taxation. Investment funds are already taxed as separate entities, meaning taxing certificate holders as well would effectively impose the same tax burden twice.

The Ripple 

The amendments reinforce Egypt’s broader efforts to deepen its capital markets and encourage greater investor participation. By reducing taxes on intraday trading and exempting listed investment fund certificates, policymakers are signaling support for both market liquidity and the growth of professionally managed investment products.

The move could also strengthen the role of investment funds in channeling savings into the stock market, giving retail investors easier access to diversified portfolios while supporting the development of Egypt’s asset management industry.

What to Watch

The latest changes add to a series of measures aimed at strengthening Egypt’s capital markets and broadening investor participation. As trading costs fall for active investors and investment funds receive more favorable treatment, market participants will be watching for increased activity across the Egyptian Exchange.

The reforms also highlight the government’s continued focus on positioning the stock market as a key source of investment and capital formation. This creates opportunities for both domestic and international investors as Egypt works to expand and modernize its financial markets.