Capital gains tax has always been an issue for non-Egyptian resident entities.

And since the Ministry of Finance issued guidelines in December 2020 on capital gains realised by non-residents on the sale of securities (i.e., shares and quotas) not listed on the Egyptian Stock Exchange, the ETA has sent a strong signal that it will pursue non-resident entities that fail to pay taxes on capital gains.

So when is capital gains tax due?

What are the penalties for failing to pay?

And can non-resident entities benefit from treaty protections?

Our Cairo Team answers these questions and more here.