Egyptian authorities have introduced new property tax incentives aimed at reducing the burden on citizens and encouraging them to register their properties and submit tax returns. According to Mohamed El-Sayed, Deputy Head of the Real Estate Tax Authority, individuals who file their tax returns before September 30 will receive a 25% discount on the tax owed, starting from next year for residential units. This initiative is part of a package to alleviate financial burdens.
Citizens can now submit their tax returns electronically through the "Egyptian Real Estate Tax" application available on mobile phones. The application allows users to create an account using their phone number and national ID card image, then register all their properties across Egypt's governorates. El-Sayed emphasized that submitting returns and registering properties through the app is free, regardless of the number of units owned.
In addition to the 25% discount for early filing, citizens who make advance payments can receive an extra 5% discount, bringing the total discount for residential units to 30% next year. For non-residential units, a 10% discount is offered for early filing, plus a 5% discount for advance payments, totaling 15%. El-Sayed highlighted these incentives as part of the government's efforts to encourage compliance.
The government has also raised the exemption threshold for private residential properties from 2 million EGP to 8 million EGP. This means that individuals with properties valued up to 8 million EGP within the private residential category will not have to pay taxes, but they are still required to register their properties and apply for the exemption through the app.
For properties exceeding 8 million EGP, citizens can benefit from the exemption up to this limit, and taxes will be calculated on the value exceeding 8 million EGP. El-Sayed provided an example of a property worth 10 million EGP, stating that the tax owed after applying the exemption would be approximately 1250 or 1260 EGP.
The Real Estate Tax Authority has set up support teams to assist citizens, including teams located in sports clubs and new city administrations. El-Sayed assured that these teams are available to help with any issues related to property tax registration and filing.
The new incentives and exemption threshold are expected to encourage more citizens to comply with property tax regulations. By making it easier and more affordable to register properties and file tax returns, the government aims to increase tax revenue while reducing the administrative burden on citizens.
Key points
- Egypt raises property tax exemption threshold to 8 million EGP for private residential properties.
- Citizens who file tax returns before September 30 can receive a 25% discount on property taxes.
- The government offers additional discounts for advance payments, bringing total discounts to 30% for residential units.
