Background

Plans to introduce a 10% tax on major stock market transactions, including IPOs and takeovers, were amongst a raft of tax reforms announced in December 2012, but no date was given for the tax to be introduced.

Further information

The 10% tax will target profits generated via the sale of 100% of National Société Générale Bank's shares to Qatar National Bank. It will be imposed on profits achieved by investors as a result of the average difference between the buy and sell share prices.

As the share price was 38.61 Egyptian Pounds at the time of the sale to QNB, those who purchased the shares at this price or higher before selling them to QNB will not be subject to the tax. Those who purchased it below this price, and later sold their shares to QNB making a profit in turn, will be subject to the tax.