Egypt Financial Regulatory Authority agrees with tax authority and exchange on a working group for joint training and capital markets tax guidance

The Egypt Financial Regulatory Authority published details of a meeting with the Egyptian Tax Authority and the Egyptian Exchange focused on closer coordination to support capital market efficiency and ease the business environment for sectors under the authority’s supervision. The main outcome was agreement to form a working group to study and implement shared mechanisms, including a joint coordination committee, a detailed cooperation protocol on mutual training and capacity building, and guidance manuals covering the regulatory and practical frameworks of capital markets. The measures are intended to strengthen cooperation between the tax administration and the non-bank financial sector, with reciprocal training between the authority, the exchange and the tax authority to improve officials’ understanding of investment activities and their accounting treatment. Discussions also covered tax issues affecting capital markets, including proposals from the exchange to clarify the tax classification of existing and future investment funds, explain accounting treatment for certain taxes and define the responsibility of each service provider for tax accounting. Participants also reviewed proposals to encourage the establishment of investment funds and to maintain close coordination on tax matters relevant to the market. The working group is expected to examine the proposed coordination committee, cooperation protocol and guidance manuals as the next step in implementing the agreed framework.