ARTICLE · 24 SEPTEMBER 2024

Capital Increase And Its Tax Implications In Egypt

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Capital increase refers to a company's decision to raise its registered capital either by issuing new shares or by increasing the nominal value of existing shares. This increase can be achieved

EgyptTax

Capital increase refers to a company's decision to raise its registered capital either by issuing new shares or by increasing the nominal value of existing shares. This increase can be achieved through cash issues, converting reserves or retained earnings into capital, or by issuing shares in exchange for non-cash assets.

Common Reasons for Capital Increase

The common reasons for increasing capital include:

Financing new expansions or large projects
Strengthening financial solvency and improving the company's financial balance
Providing additional working capital to meet operational needs

Tax Implications of Capital Increase under Law No. 91 of 2005

Law No. 91 of 2005, the Income Tax Law, regulates several tax aspects related to capital increases, including:

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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