CAIRO: The presidency approved Tuesday evening new amendments in real estate taxes that were ratified by the Egyptian Cabinet in early July, Ahram gate reported Wednesday.
The new amendments state that properties whose rental value is less than 2400 EGP monthly needed for housing purposes will be exempted of paying real estate tax, while properties whose rental value is less than 1200 EGP per month and are used for commercial purposes will be exempted of paying taxes as well. All properties of higher value will be subject to real estate taxes.
“Article 5 of the 169 law for 2008 of real estate regulations was kept unchanged,” it stated, stipulating a 30 percent maximum increase for housing units over the five-year assessment and a 45 percent maximum hike for commercial units over the same period, it reported.
In March 6,the Cabinet agreed on reshuffling a number of regulations concerning real estate taxes, it reported, adding that such amendments include calculating real estate taxes according to the calendar year, not the fiscal year as a step for unifying the collection system according to the Cabinet’s homepage at that date.
Also, committees of experts will be formed to evaluate and assess the rental value of construction projects, and a senior appeal committee will be assembled to finish the submitted appeals of citizens.
The buildings owned by registered associations, labor organizations, educational institutions, hospitals, clinics, shelters, nonprofits, political party headquarters and trade unions also will be exempted from paying real estate taxes, it stated.
Minister of Finance Hani Kadry previously announced that he would amend the tax system by imposing progressive taxes, wealth taxes and real estate taxes as a step for covering the budget deficit and increasing Egypt’s tax revenues.
The delay in applying real estate taxes caused the Egyptian Tax Authority to lose 4 billion EGP in possible income, Kadry said during his inspection tour to the self-employed tax directorate in Nasr City.