Egypt Levies 10% Tax on NSGB Takeover Profits; Exempts SocGenAhmed A. Namatalla
Egypt plans to tax shareholders that profited from selling shares in Societe Generale’s Cairo-based unit to Qatar National Bank except for the parent company.
The country’s tax authority ordered the collection of a 10 percent tax from all parties that sold their stakes in National Societe Generale Bank except SocGen, citing an agreement between Egypt and France to prevent double taxation, according to a letter released by the Egyptian bourse today and dated March 25.
QNB completed a month-long offer to buy all NSGB shares yesterday at 38.65 Egyptian pounds apiece, for a total 17.1 billion pounds ($2.5 billion). SocGen had owned 77.2 percent of NSGB, according to Bloomberg data.
The authority said it’s implementing laws that stipulate the tax on profits that result from acquisitions of 33 percent or more of a company. NSGB shares slumped 4.1 percent to 36.92 pounds at the close in Cairo.