(EGYPT) – Egypt replaced the 10% capital gains tax on gains from listed shares with a 0.05% unified stamp duty, effective June 23, 2026. The new levy applies to the total value of both buy and sell transactions in securities listed on the Egyptian Exchange.

The change shifts the tax base from profit to transaction value. Under the old system, tax applied only when an investor realized a gain on a listed share sale. Under the new system, the unified stamp duty applies whether the trade produced a gain, a loss, or no gain at all. The rate is 0.5 per thousand, or 0.05%, on each side of the trade.

Investors trading Egyptian listed shares are directly affected. That includes Egyptian residents, foreign investors, funds, and expatriates who hold or trade listed securities through local or international brokers. U.S. tax residents, including many green card holders and visa holders who meet the substantial presence test, still must report their worldwide income to the IRS. Egypt’s change does not replace U.S. reporting rules.

The practical effect is simple. A trader who buys shares worth EGP 1,000,000 pays EGP 500 in stamp duty on the purchase. If those shares are later sold for EGP 1,100,000, the sale triggers another EGP 550. Total Egyptian transaction tax: EGP 1,050. Under the prior capital gains tax system, the tax would have been tied to the EGP 100,000 gain, not the trade values.

The same rule now applies even if the trade loses money. If an investor buys at EGP 1,000,000 and sells at EGP 900,000, the purchase still triggers EGP 500 and the sale triggers EGP 450. The investor pays EGP 950 in Egyptian stamp duty despite having no gain. That is the core economic difference in the new system.

Egypt reported the change on June 23, 2026, and the levy applied from that date. That date matters for tax year 2026, especially for investors who traded listed shares before and after the switch. Pre-change transactions remain governed by the earlier regime. Transactions executed on or after June 23, 2026 fall under the new stamp duty structure.

The scope is narrower than a blanket securities tax. The new levy applies to purchase and sale transactions involving securities listed on the Egyptian Exchange. The reported change does not describe a broader rule for all private securities, foreign exchanges, or unlisted interests. Investors should review broker records carefully to confirm which transactions fall inside the listed-market scope.

Transition treatment appears to follow the trade date. Gains realized before June 23, 2026 remain part of the earlier capital gains tax framework. Trades executed from June 23, 2026 onward trigger the new stamp duty, even if the investor acquired the shares earlier. That means some 2026 investors may have activity under two different Egyptian tax rules in the same year.

📅 Deadline Alert: Investors with trades on both sides of June 23, 2026 should separate pre-change and post-change transactions now. Broker statements and contract notes will matter at year-end.

That split can complicate U.S. tax reporting. A U.S. tax resident generally reports gains and losses from foreign stock transactions on Form 8949 and Schedule D for tax year 2026, filed in 2027. IRS Publication 519, the U.S. Tax Guide for Aliens, explains when immigrants and visa holders are taxed as U.S. residents. IRS international tax guidance is available at irs.gov/individuals/international-taxpayers, and forms are available at irs.gov/forms-pubs.

The Egyptian stamp duty is not the same as a gains tax for U.S. purposes. U.S. taxpayers still compute gain or loss using their purchase price, sale price, holding period, and exchange rates. The foreign levy may affect the transaction’s economics, but it does not erase the need to calculate gain under U.S. rules. Whether the Egyptian stamp duty qualifies for a foreign tax credit is a technical question that often requires case-specific review.

Visa holders should check residency status first. An F-1 or J-1 student or trainee may remain exempt from the substantial presence test for a limited period under IRS Publication 519. An H-1B or L-1 worker is often a U.S. tax resident and usually reports worldwide investment activity. A green card holder generally reports foreign stock sales and related income for the full period of U.S. tax residency.

Foreign account reporting can also enter the picture. If the investor’s non-U.S. financial accounts exceeded $10,000 in aggregate at any point in 2026, FinCEN Form 114, the FBAR, is required. Form 8938 may also apply, depending on filing status and asset values. The Egyptian tax change does not alter those U.S. filing thresholds.

⚠️ Warning: A losing trade on the Egyptian Exchange can still trigger Egyptian stamp duty. Do not assume zero gain means zero local tax cost.

Investors and tax preparers should preserve four records for tax year 2026: purchase confirmations, sale confirmations, broker statements showing the 0.05% levy, and exchange-rate records for U.S. reporting. If the account is held jointly or through a foreign entity, ownership records also matter. Missing basis records often create bigger tax problems than the levy itself.

Anyone with active Egyptian listed-share trading should review 2026 transactions before year-end. Separate trades before and after June 23, 2026, confirm how the broker applied the unified stamp duty, and match those records to U.S. reporting forms. Investors who changed visa status during 2026, or became U.S. tax residents midyear, should ask a CPA whether a dual-status return, treaty position, or foreign reporting form applies.

⚠️ Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax situations vary based on individual circumstances. Consult a qualified tax professional or CPA for guidance specific to your situation.