(Corrects headline and first paragraph after MCDR corrects
starting date of tax implementation)
CAIRO, July 3 Egypt started implementing a new
capital gains tax on Wednesday in a bid to increase the
country's sources of revenue following more than three years of
economic and political turmoil.
The managing director of Misr For Clearing, Settlement and
Central Depository (MCDR), Tareq Abdel Bary, told Reuters on
Thursday that his organisation started implementing the tax on
Wednesday which will be financially settled on Sunday.
Egypt's President Abdel Fattah al-Sisi passed the law on
Tuesday, imposing a 10 percent tax on capital gains and stock
dividends as the cash-stripped country of 85 million seeks to
boost revenue to help its ailing economy.
"We will deduct 6 percent of the realised profit from
foreign investors with each transaction under the tax account
but for the Egyptian investors we will record the realised
profits and send them to the tax authority which will collect,"
The finance ministry had initially set an annual tax-free
limit of 10,000 Egyptian pounds ($1,400) on cash dividend
payments for individual residents in Egypt but the tax was
watered down last month after news of it caused the stock market
to record its biggest daily drop in almost a year.
Egyptian officials said last month the tax threshold would
be raised to 15,000 pounds but in the official gazette,
published on Thursday, the tax-free exemption was still limited
to 10,000 Egyptian pounds.
(Reporting Ehab Farouk; Writing by Asma Alsharif; Editing by