Egypt to collect foreigners' capital gains tax on each transaction

Source: Reuters

Egypt will collect capital gains tax from foreigners with each transaction, the country's finance minister Hany Dimian said in a television interview late on Saturday.

The interim government agreed to impose a new 10 percent capital gains tax on profits made on the stock market last week as part of its first phase of tax reforms which it expects to bring in 10 billion Egyptian pounds ($1.42 billion).

The 10 percent tax will be imposed on cash dividends and on net capital gains that Egyptians make at the end of the tax year. But Dimian said foreigners would be taxed with each transaction.

"For foreigners... I will (collect) transaction-by-transaction because they can carry out a transaction and leave," he said on private Egyptian television channel CBC.

Read more: http://news.yahoo.com/egypt-collect-foreigners-capital-gains-tax-transaction-080633400.html