الهيئة العامة للرقابة المالية

Dr. Islam Azzam – FRA Chairman:

• FRA, EGX and Tax Authority will launch joint training initiatives to enhance institutional capabilities.

• Forming a joint committee and drafting a MoU to establish clear regulatory guidelines to strengthen trust with market participants.

Dr. Islam Azzam, FRA Chairman hosted Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA) and Omar Radwan, EGX Chairman for an expanded, high-level meeting. Joined by senior officials from all three institutions, the session focused on deepening joint cooperation to boost capital market efficiency, streamline business operations in FRA-regulated sectors and elevate the competitiveness of the Egyptian market.

FRA Chairman emphasized the Authority’s commitment to coordinate with all state institutions tied to the investment ecosystem. He noted that integrating the roles of regulatory and executive authorities is crucial to remove obstacles for investors, ensure market stability, and drive market depth.

In this context, FRA Chairman stressed the importance of fostering trust and partnership between tax authority and the non-banking financial sector (NBFS) business community. He highlighted the need for FRA, EGX and Tax Authority to collaborate on capacity building and training regarding the latest legislative and regulatory frameworks. This includes improving the efficiency of government personnel handling markets and investors through newly agreed-upon mechanisms.

The meeting concluded with an agreement to form a joint working group tasked with studying and implementing several proposed collaborative mechanisms. Chief among these are establishing a joint coordination committee, signing a detailed Memorandum of Understanding (MoU) for mutual training and personnel development and drafting comprehensive guidelines outlining the regulatory and practical frameworks of capital markets.

Ms. Rasha Abdel-Aal welcomed the initiative, stating that equipping tax personnel with a deeper understanding of NBFS investment activities and their technical accounting details is vital. This cooperation will optimize tax assessment procedures and reinforce market trust – mirroring successful joint committees currently operating between the Tax Authority and chambers of commerce federations for other sectors.

On the other hand, Mr. Omar Radwan highlighted several proposed incentives to support investors on the Egyptian Exchange (EGX) and within investment funds. These include resolving the tax treatment for current and future investment funds, clarifying accounting mechanisms for specific tax categories, and clearly defining the tax accounting responsibilities of various financial service providers.

The meeting concluded with discussions on driving the launch of investment funds and establishing a direct communication pipeline to address the capital market’s tax concerns. The parties also agreed to launch training programs, allowing Tax Authority personnel to train at FRA, while NBFS market participants undergo parallel training at the Tax Authority.