The Ministry of Finance has completed the preparations for drafting a new real estate law to be reviewed by the People’s Assembly.

Minister of Finance Dr. Youssef Boutros Ghali has reiterated that th...

The Ministry of Finance has completed the preparations for drafting a new real estate law to be reviewed by the People’s Assembly. Minister of Finance Dr. Youssef Boutros Ghali has reiterated that the new law included a number of facilities and a sizeable reduction in the tax categories on land or buildings.  The new law will also include a number of clarifications to facilitate dealings and achieve fair taxation. Head of the real estate tax authority, Ismail Abdel Rassoul has reiterated that the new real estate law will tackle a number of loopholes in the current statutes.  As an example, of all the 21 million real estate units listed in a current research by the state, it has been found that only 8 million units are subject to taxation.  The new law includes a number of priviledges namely a reduction in the tax fee to 10% on buildings and agricultural land instead of the present system of differences among taxes.  The time ceiling  for the evaluation of annual rentals will take place every five years instead of ten. The draft law has determined criteria on real estate on agricultural land and buildings to include determining the taxpayer as the owner of the estate or those in line who stand to benefit.  The law will include the payment of tax as of January.  The law has introduced a clause allowing for the continuation of the value of rent in accordance with law no. 49/1977 and until the binding agreement between the parties is severed.  The new law will eliminate sporadic exemptions on agricultural land except in cases where the land is owned by the state and until the land is supervised by special individuals. The draft law will enforce an annual tax on buildings including utilities and which are managed through licenses or commitments.  The draft law has excluded annexes on rooftops or on frontals. (source :Al-ahram)