Unprecedented facilitations and incentives in real estate taxation have been introduced to ease financial burdens on citizens, including raising the tax exemption threshold for primary residences to EGP 8 million. Late payment charges will, in all cases, not exceed the original tax principal.

No real estate tax will be imposed if a property is demolished or if exceptional circumstances prevent its use or benefit. For the first time, tax liabilities and late payment charges may be waived in cases of necessity.

 

The Real Estate Tax Authority will refund any overpaid amounts exceeding what is legally due. Late payment charges will also be waived for taxpayers who settle all outstanding real estate taxes either before the implementation of the latest legal amendments or within six months thereafter.

 

Tax exemptions, along with waivers of late payment charges, will apply to periods prior to the enforcement of the new amendments—“past dues forgiven”—provided that the property had not previously been assessed or had its rental value determined. All pending appeals submitted by real estate tax offices that have not yet been adjudicated will be closed.

 

Taxpayers will be allowed to settle ongoing tax disputes before courts and appeal committees by paying 70% of the disputed tax amount, facilitating faster and more efficient resolution of disputes. They will also be permitted to submit a single tax return—either in paper or electronic form—even when owning multiple properties across different tax jurisdictions.

 

Taxpayers will retain the right to appeal property assessments or rental value determinations, with recognition given to any approved electronic means.

 

A tax incentive will be granted to compliant taxpayers who submit their returns on time, offering a 25% discount on tax for primary residential units and 10% for non-residential properties. An additional 5% discount will apply if payment is made in advance upon filing the tax return.

 

Ahmed El-Sadiq, Head of the Real Estate Tax Authority, stated that the authority’s power to challenge rental value assessments will be abolished. Taxpayers will also be allowed to pay their taxes in installments and through electronic payment methods.

 

He added that the new legal amendments grant the Minister of Finance the authority to extend the deadline for submitting tax returns until June.