Regulatory Alerts2014-01-01
Circular Letter No. 7 of 2014 on Amendments to Income Tax and Stamp Duty Laws and Their Impact on Investment Funds under Law No. 95 of 1992
The Egyptian Financial Supervisory Authority (EFSA) and the Egyptian Tax Authority issued Circular Letter No. 7 of 2014 to clarify the application of amendments to the Income Tax and Stamp Duty Laws on investment funds governed by Law No. 95 of 1992. The directive mandates that funds calculate tax at a flat 10% rate on realized capital gains and cash dividends, while exempting stamp duties on exchange transactions and money market funds. It further requires funds to maintain tax provisions for unrealized gains, adhere to specific acquisition cost and loss carryforward rules, and coordinate with auditors and managers to ensure consistent accounting treatments for net asset value calculations.
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