Cairo — Mubasher: Egypt's Ministry of Finance (MoF) has reached an agreement on newly ratified amendments to the Income Tax Act that change how lenders and corporations account for income from government debt holdings, a senior government source said.
The treatment will see the cost-to-income ratio on income from holdings of treasuries capped at 50%, the source told Enterprise.
The source signalled that a tax formula would be set up for Euro and dollar-denominated government treasuries.
The new tax treatment will not apply to any government debt notes issued prior to the recent amendments to the Income Tax Act, but they will be applicable if those treasuries are later traded to another institution or sold on the secondary market, he added.
The government source expected the new executive regulation of tax amendments of treasury bonds to be finalised within days.
In November 2018, the finance ministry and the Federation of Egyptian Banks (FEB) agreed on applying the proposed amendments after being endorsed by the Egyptian House of Representatives.
