The joint coordinating committee established by the Financial Regulatory Authority (FRA), the Egyptian Exchange (EGX) and the Egyptian Tax Authority (ETA) has held its inaugural meeting, marking the official launch of its work. The meeting was attended by Islam Azzam, Chairperson of the FRA, who stressed the importance of developing the tax framework governing the capital market and strengthening trust and partnership between the tax administration and the business community. Under a decision issued by the FRA Chairperson in July, the committee has begun carrying out a number of key tasks. These include examining and assessing the tax implications of applying the provisions of the Capital Market Law, conducting the necessary studies to prepare recommendations and proposals on the appropriate tax treatment of various activities and transactions, and recommending the transactions to which taxes applicable to investment funds should apply. The committee will also oversee the establishment of an electronic link between the Egyptian Tax Authority and the Egyptian Exchange, review previously issued tax treatment instructions and update them in line with applicable legislation and market developments, and determine the mechanisms for collecting and remitting taxes due on securities transactions and investment fund activities. Its responsibilities also include developing a practical framework for training employees of the Egyptian Tax Authority and the Egyptian Exchange, facilitating the exchange of technical and professional expertise, preparing joint guidance manuals covering the tax treatment of listed and unlisted securities and investment fund activities, and establishing a clear classification of investment funds to support the standardisation of related tax treatments and procedures. During the meeting, Azzam said strengthening trust and partnership between the tax administration and the business community in the non-bank financial sector is a shared priority for the three institutions. He added that the committee represents a first step towards building institutional capacity, providing training on the latest legislative and regulatory frameworks, and enhancing the efficiency of government personnel responsible for dealing with markets and investors. He stressed the importance of accelerating joint efforts to resolve outstanding tax treatment issues and reach clear, practical recommendations, noting that doing so would enhance the attractiveness of the Egyptian market amid growing regional competition and the increasing diversification of investment instruments. Azzam added that the committee’s formation comes at a particularly important time, coinciding with significant developments across Egypt’s non-bank financial sector aimed at diversifying investment channels and introducing new tools and mechanisms for market participants, thereby deepening the market and enhancing its competitiveness. These developments include the anticipated launch of short selling, the activation of market makers, the continued development of the derivatives market, which was launched on 1 March, and the regulation of hedge fund establishment.The post FRA, EGX, and Tax Authority launch joint coordinating committee first appeared on Dailynewsegypt.
