Taxes: Real estate tax adjustments provide unlimited convenience to the buyer and benefits to the seller
Talaat Abdel Salam, director of the technical office of the head of the tax authority, revealed the details of the application of the real estate tax, continuing: "All we are saying is just a draft law only, which will still be presented to the House of Representatives for approval or rejection.
And he explained in a telephone interview during the “Final Word” program on the “ON” screen that all the latest amendments will not be applied and the taxpayer will not be required to tax except with the beginning of work on amending the real estate month law, continuing: All classes of Egyptian society are owners of real estate to register them.”
The Director of the Technical Office of the Head of the Tax Authority indicated that the latest facilities granted facilities to the buyer and advantages to the seller, as the first enjoys, according to these amendments, the end of the link between the procedures for registering real estate and there is no link between the payment of tax and the facilities.
Talaat Abdel Salam pointed out that the real estate tax is one of the income taxes found in the law, and it is due on the financier if he disposes of his property outside the village, because this tax does not apply to contracts for the sale of real estate inside the villages, saying: By notifying the Tax Office and within thirty days only, after which delay fines will be imposed.
He explained that the amendments to the draft law approved by the Council of Ministers aim to provide facilities for registering real estate ownership in the real estate month, saying: “The estimated 2.5% tax on real estate transactions will be replaced by a flat tax on real estate sales contracts before May 19, 2013.”
Revealing that the significance of choosing this date despite the existence of the law since 2005, but the amendments were issued in Law 11 of 2013 specifying that percentage and was issued on May 18, 2013 and subject to it all real estate tax transactions outside villages, a 2.5% tax applies to them, whether they are declared or not.
He pointed out that the draft law specified four tranches, starting from 1500 pounds as a flat tax if the contract value reaches 250 thousand pounds, and the second tranche is more than 250 thousand pounds and up to 500 thousand pounds, the value of the tax will become 2000 pounds, and the third tranche if the value of the contract is between 500 thousand pounds and up to One million pounds, the value of the tax will be 3 thousand pounds, and the last tranche will be contracts with the highest value of one million pounds and above, which will have a lump-sum tax of 4 thousand pounds.
And he indicated that the draft law replaces the tax on real estate transactions at a rate of 2.5% with a flat tax in different segments, saying: "On the transactions of sales contracts that took place before May 19, 2013."