Anwar Fawzi, head of the Real Estate Tax Authority, called on citizens to quickly submit tax returns for their real estate units, before the end of the prescribed period, which ends today evening, Wednesday, March 31.
There are types of buildings that have been exempted from paying the real estate tax, according to what was specified in Article No. 18 of Law No. 196 of 2008, as amended by the provisions of Law No. 23 of 2020 regarding the real estate tax, the texts of which came according to the following:
Without prejudice to the exemptions stipulated in Article (4) of this law, exemption from the tax:
1- Buildings owned by associations registered in accordance with the law and labor organizations designated for their management offices or for exercising the purposes for which they were established.
2- Buildings of educational institutions, hospitals, clinics, shelters and charitable institutions that are not for profit.
3- Headquarters owned by political parties and professional unions, provided that they are used for the purposes assigned to them.
4- The real estate unit that the taxpayer takes as a main private residence for himself and his family, whose annual net rental value is less than 24,000 pounds (twenty four thousand pounds), provided that what exceeds that is subject to tax, and includes the family in applying the provision of this clause the taxpayer, his wife and minor children.
5- Every unit in a real estate used for commercial, industrial, administrative, or professional purposes, whose annual rental value is less than 1,200 pounds (one thousand two hundred pounds), provided that what is in excess is subject to tax.
6- Buildings of youth and sports centers established in accordance with the laws regulating them.
7- Real estate owned by foreign government agencies on condition of reciprocity. If the tax has no equivalent in any of the foreign countries, the Minister may, after consulting the Minister of Foreign Affairs, exempt real estate owned by it from the tax.
8- Houses designated for use in social events without profit targeting.
9- Armed forces clubs and hotels, weapons houses, complexes, medical centers, hospitals, military clinics, real estate built in their area, and other units proposed by the Armed Forces Operations Authority, provided that a decision is issued for their determination by the Minister of Defense in agreement with the competent minister, and in all cases none of these bodies are subject to the work of committees Inventory and judgment according to the considerations of defense affairs and national security requirements.
According to the law, if the reasons for exemption from the tax have disappeared from any property, the taxpayer must submit a declaration to the Tax Office in whose jurisdiction the property is located, within sixty days from the date of the demise of the reason for the exemption to re-link the property to the tax starting from the first of January of the year following the date of the demise of the reason for the exemption .
Article 18 bis also stipulated that: “It is permissible by a decision of the Council of Ministers based on the proposal of the Minister of Finance in coordination with the competent minister to exempt the real estate actually used in the production and service activities determined by the Council of Ministers from the tax on the built real estate, provided that the decision includes the percentage and duration of the exemption for each Productive or service activity. “