Real estate tax proceeds jump by 455% after applying new Tax Law
The authority will determine specific criteria for evaluating petroleum facilities, while the tourism sector will be granted a temporary exemption
The real estate tax revenue jumped by 455% following the implementation of the new real estate tax law, recording EGP 2bn in the last fiscal year compared to EGP 360m before applying the law, according to Samia Hussein, head of the Real Estate Taxes Authority.
She added that the authority plans to make the tax proceeds about five times larger by 2023. It came during a meeting organised on Friday by the Customs and Tax Committee in the American Chamber in Cairo, headed by Hassan Hegazi.
Hussein revealed that the authority concluded a protocol that will determine the criteria for evaluating the petroleum facilities subject to the new real estate tax law No. 196 of 2008. The new protocol shall be signed by the ministers of finance and petroleum in accordance with the provisions of the law.
She pointed out that the petroleum facilities fall under the facilities of special nature criteria stipulated in Article 13 of the law and its amendments. This article stipulates that special criteria shall be set for evaluating industrial, tourist, and petroleum establishments, airports, seaports, mines, quarries, and similar facilities.
Hussein said the authority has not yet signed the protocol of evaluating tourist establishments due to the bad conditions experienced by the tourism sector, adding that it will be signed when the sector recovers.
On the other hand, the criteria for evaluating the factories have already been agreed by the ministers of finance and industry.
Hussein noted that President Abdel Fattah Al-Sisi instructed the authority to ease the burden on families living in a single building, mostly in the countryside. The house owner can provide a photocopy of his ID and his adult children, so that each apartment inhabited by those children shall be exempted. She added that the law exempts private houses a worth maximum of EGP 2m per unit.
Hussein said the authority considers obligating real estate owners to register their properties compulsory after the authority had reduced the registration fees significantly.
She pointed out the authority has not yet applied any penalties on delay or negligence for registry, but it will do so in the coming period.
Samia Hussein, head of the Real Estate Taxes Authority