In
real estate taxes, the units are divided into four categories.
Taxpayers who are unable to pay the
real estate tax of their housing units are entitled to apply to the state to bear the tax on their behalf, if they can prove their inability to pay due to social circumstances, in accordance to specific procedures and controls, he concluded.
Real estate taxes can vary widely from state to state, and not just in the official tax rate: property value can vary widely depending on where a property is located.
There is a complete database that enables officials to see if there are any pending or overdue debts, and the transaction will not be allowed unless a
real estate tax clearance is granted by the tax office.
During this period of declining values,
real estate tax assessments continued to increase.
Unlike homeowners, who incur and pay their
real estate taxes directly, tenant-stockholders of a housing corporation indirectly pay
real estate taxes incurred by the corporation through their rent.
According to existing laws, building owners must pay both
real estate taxes for the building itself and comprehensive land taxes for the land on which the building is located.
The most common seems to be the practice of including existing
real estate tax recoveries as an income item, removing
real estate taxes from the expense side of the income statement, and applying a capitalization rate loaded with the full tax rider or load to the resultant net operating income (NOI), before
real estate taxes.
Alaa Fekry, member of the Board of Directors of the Real Estate Investment Division at the Federation of Egyptian Chambers of Commerce (FEDCOC) said that applying the
real estate tax on units exceeding EGP 2m under specific conditions is a good and balanced tool to increase state resources without harming low and middle-income citizens .
FILE - Minister of Finance Mohamed Ma'it CAIRO -- 19 August 2018: Minister of Finance Mohamed Ma'it will inaugurate Sunday a new
real estate tax building in Al-Tur City, South Sinai Governorate.