In Egypt, the number of taxable properties has drastically decreased.
Ahmed Al-Sadiq, head of the Egyptian Real Estate Taxation Authority (RTA), announced a significant narrowing of the tax base after the adoption of amendments to the relevant law. Now, the residential property tax applies to only 2 million properties out of 55 million registered in the country.
According to the Daily News Egypt, the key change was an increase in the threshold for tax exemption on basic housing. Previously, real estate worth up to 2 million Egyptian pounds ($40,000) was not taxed, but now this threshold has increased to 8 million pounds ($160,000). The agency clarified that this amount is equivalent to a net annual rent of 100,000 pounds ($2,000).
At the same time, the benefit applies only to one housing used by the family as the main one. Cottages, second homes, and other properties are still subject to taxation.
In parallel with the reform, the Department is launching large-scale digitalization. 1.2 billion pounds ($24 million) have been allocated from the state budget for modernization. An information campaign about the new rules is planned to be held in the upcoming Ramadan season.
Source: Daily News Egypt
