queenie40something
Senior Member
Very conflicting info. We have been told by our agent that the form that needs to be in March next year is another different form and that form is for the rental side!!!??
H
holterchris
New Member
Hi Queenie, been reading this website for a long time but first time i have posted anything.
My lawyer who seems to be up to date with everything told me there has been an extension to March 2010 but this is only for property owners who do not reside here and the form is for them to register online. An article in yesterday's paper from the minister stated anyone who rents will not be liable. I think there was some info in today's egypt gazette also, so maybe you can look it up online. The minister stated that no-one should be paying anything yet, that after reistration, statements will be sent/given to owners telling them how much their tax will be and if they dont agree, they can appeal. Appeals cost 500LE but if a reduction is granted, the fee is reimbursed.
I believe here in Sharm that many developers have already charged people but this must be wrong as no-one knows yet what tax will be due as it will be based on rental value. Also they have not signed any forms and the minister clearly stated that forms signed by owners must be submitted by 31 Dec or the fines will be between 200 and 2000 LE for non submission.
My lawyer has completed and registered forms for many clients but no tax has been paid, only his fees, so do not pay any lawyer who asks for the tax, they do not know how much your tax will be.
Hope this helps and I will post any new info I get from my lawyer. Very confusing for everyone, but my advice is find a good lawyer who has access to government law papers, websites and contacts. Happy to give anyone in Sharm my lawyer details and he charges reasonable price and speaks English.
My lawyer who seems to be up to date with everything told me there has been an extension to March 2010 but this is only for property owners who do not reside here and the form is for them to register online. An article in yesterday's paper from the minister stated anyone who rents will not be liable. I think there was some info in today's egypt gazette also, so maybe you can look it up online. The minister stated that no-one should be paying anything yet, that after reistration, statements will be sent/given to owners telling them how much their tax will be and if they dont agree, they can appeal. Appeals cost 500LE but if a reduction is granted, the fee is reimbursed.
I believe here in Sharm that many developers have already charged people but this must be wrong as no-one knows yet what tax will be due as it will be based on rental value. Also they have not signed any forms and the minister clearly stated that forms signed by owners must be submitted by 31 Dec or the fines will be between 200 and 2000 LE for non submission.
My lawyer has completed and registered forms for many clients but no tax has been paid, only his fees, so do not pay any lawyer who asks for the tax, they do not know how much your tax will be.
Hope this helps and I will post any new info I get from my lawyer. Very confusing for everyone, but my advice is find a good lawyer who has access to government law papers, websites and contacts. Happy to give anyone in Sharm my lawyer details and he charges reasonable price and speaks English.
J
John111
New Member
Perhaps this might help. The web page for the article in the Egyptian Gazette is The Egyptian Gazette
I couldn't attach a link so I have pasted the actual article which is the editorial as follows:
WHILE the world is sprucing itself up to celebrate the New Year,Egyptians have got another reason to feel sad.They have to scramble to submit property tax statements.
To convince the public about his new tax on real estate,Minister of Finance Youssef Boutros- Ghali claimed that it helps subsidise public services,national security,education and housing units for young people. In his same statement to the press,Boutros- Ghali noted that the revenues from taxes on individuals,institutions,ventures and sales have come to about LE340 billion this year. If this sum isn صt enough to provide proper services for citizens,what will a new tax do, apart from increasing people صs financial burdens? Boutros-Ghali,who yesterday extended the deadline for submitting the statements until next March,promised that 25 per cent of the tax on people صs properties will be given to local governments to spend on upgrading services and living conditions for citizens within each governorate. But the revenue is bound to differ from governorate to governorate,because the people in some governorates are richer than others. In other words,poor governorates such as el- Qaliubia in the Delta and el-Minya in Upper Egypt will get very little revenues from this tax, although these are the very governorates that need the money most. Meanwhile,the new Governorate of 6 October, home to many rich people,living in swanky accommodation,will make a lot of revenues, while its basic utilities and services are actually in good shape. This means that the injustice in the distribution of services among citizens will only continue. The Minister stresses that 95 per cent of citizens won't have to pay this tax,because the State will pay for those who cannot afford it. But some poor or middle-class citizens have lived in their flats for many years and they might be valued at more than LE450,000,below which housing units are exempt from this tax. The contradictory statements over this tax are worrying for the public,especially as the Minister insists that everyone must hand in their housing unit ownership forms by the end of this year. If he made it the end of next year,it would give the Ministry more time to carefully consider who should pay and who shouldn صt.
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H
hmadfai
New Member
On Monday 21/12 the Arabic newspaper Al-Ahram had a P1 article clearly stating that the deadline for registration has been extended to 31st of March 2010 - no restrictions or categories stated. Details on the MoF website at
Google Translate
hope that this helps
h
Google Translate
hope that this helps
h
queenie40something
Senior Member
Thanks all and welcome to the forum Holterchris
R
ronaw123
New Member
Dear Forumites
Do we have to register our property before registering our tax registration.
Can we do it from the UK.
Do we need a soclitor.
Has anyone managed to compelte theirs yet.
Do we have to register our property before registering our tax registration.
Can we do it from the UK.
Do we need a soclitor.
Has anyone managed to compelte theirs yet.
S
sanddune
New Member
Can anyone confirm 31st march as the deadline date.
D
danny
New Member
Welcome to Ministry of Finance Portal - The Real Estate Tax Declaration Form in English (For Foreigners)
The link above will take you to the official English version of the new property tax laws.
Registration for this tax is not subject to any other registration.
It has been produced by the Government so I assume it should be accepted by them in English.
For those who cannot get out before the end of March you can airmail it to an address listed on on the form.
It looks pretty straight forward but read the questions a couple of times as they are not translated in a straight forward English grammatical format.
There is no need for a lawyer to submit the form.
There is a request for a Post Office Box number which most Egyptians will have but not foriegners, I assume that if you submit by airmail you would have to provide your own address or if you have an Egyptian friend ask them if you can use thier PO Box number.
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E
ERG Experts
New Member
Dear Sanddune,
I can confirm the deadline has been extended until the end of March.
Dear Ronaw123,
The tax form must be completed for all properties that are completed, regardless at what stage of the registration process they are at. You do not need to travel to Egypt to complete the form, it can either be completed and submitted of your behalf, or you can complete it yourself in UK and then send it to someone here to the submit on your behalf. I am not sure if email submissions or any other means of submission other than by hand is accepted, but in any case for your own peace of mind, even if other methods are acceptable, I would personally only trust that it was received if it was handed directly to the office. It is also not necessary to hire a solicitor to do this for you. In some resorts the management company have handled this for their owners, so you may like to check the management from where your property is in the event they can do this.
I can confirm the deadline has been extended until the end of March.
Dear Ronaw123,
The tax form must be completed for all properties that are completed, regardless at what stage of the registration process they are at. You do not need to travel to Egypt to complete the form, it can either be completed and submitted of your behalf, or you can complete it yourself in UK and then send it to someone here to the submit on your behalf. I am not sure if email submissions or any other means of submission other than by hand is accepted, but in any case for your own peace of mind, even if other methods are acceptable, I would personally only trust that it was received if it was handed directly to the office. It is also not necessary to hire a solicitor to do this for you. In some resorts the management company have handled this for their owners, so you may like to check the management from where your property is in the event they can do this.
A
Alan Cockayne
Banned
tax confusion.
There is no need to panic everyone.
I brought this news article to the forum attention in January. As Mubarak stated, the new tax law is under review but the signed form is still required to be taken in.
Now surely, those who used lawyers to notorise the sale, would it not have been expected of them to deal with this document as a matter of duty? Which makes it perfectly obvious that they are looking at obtaining further income (in some cases we read of extortionate fees) for what is a simple matter the project managements or their local agents could deal with "for free."
And have done in the more responsible developments.
Alan. Coralife-Style Consultants.
There is no need to panic everyone.
I brought this news article to the forum attention in January. As Mubarak stated, the new tax law is under review but the signed form is still required to be taken in.
Now surely, those who used lawyers to notorise the sale, would it not have been expected of them to deal with this document as a matter of duty? Which makes it perfectly obvious that they are looking at obtaining further income (in some cases we read of extortionate fees) for what is a simple matter the project managements or their local agents could deal with "for free."
And have done in the more responsible developments.
Alan. Coralife-Style Consultants.
V
VICKIG
New Member
I have been advised that noone will have to pay this new tax if they have one main residence. Tax will now only be payable on a second rental property, this apparently was decided a few weeks ago.
If I get any more info I will let you know.
As far as I know you still need to do the registration process but you will be exempt from paying unless the second property rental applies to you.
Hope this helps
Victoria
If I get any more info I will let you know.
As far as I know you still need to do the registration process but you will be exempt from paying unless the second property rental applies to you.
Hope this helps
Victoria
M
Mussa1
New Member
Can i register my property once i have the keys or do i have to wait until i have made all payments to developer
C
CMChris
New Member
My uinderstanding of the law is that even if its half built and you have paid something towards it you need to register it. The law itself is ambiguous and open to interpretation. As registering costs nothing and there's now several ways to do it, best be safe than sorry and register.
M
Mussa1
New Member
Thank you CM Chris, would you know what the cost of registering a property will be. I do know that i will not be paying tax as the cost of the apartment is low
Also is this something you can do yourself or you need a lawyer to assist you?
Regards
Also is this something you can do yourself or you need a lawyer to assist you?
Regards
U
United Lawyers Company
New Member
Reminder Real Estate Tax Deadline
Dear Sir/Madam,
Once again we would like to remind you that the last day of registration of property in the Registry Tax Office is March 31, 2010.
The registration calls for all Egyptian or Non Egyptian property owners in Egypt of buildings residential or commercial, apartment, villa, shop to register their property in the Real Estate Tax Office on or before the given due date.
See guideline below regarding the new Real Estate tax law;
1. Property (ies) subject to tax
• New built properties residential or commercial
• All kinds of properties that were built and not registered in the Tax Office
• Each unit in a building is subject to tax whether the unit is completed and occupied; completed and not occupied OR even it is not completed but is occupied.
2. Exemption
• Residential property whose annual rent is 6000 Egyptian pounds and below (Although exempted from paying tax, the concerned citizen must register their property not later than March 31, 2010).
• Property whose market value after assessment is 500 000 Egyptian pounds and below (Although exempted from paying tax, the concerned citizen must register their property not later than March 31, 2010).
• Others
a. Buildings owned by labor associations & organizations that are registered and specialized for their managing offices.
b. Educational institutions, hospitals, infirmaries, orphanages and charity associations.
c. Quarters for political parties and professional organizations.
d. Enclosed graves and buildings of graveyards.
e. Buildings for youths & sport centers.
f. Buildings owned by foreign governmental authorities (such as foreign embassies),provided that the treatment shall be the same.
g. Building that is used in connection with agriculture
h. Building that is used for social occasions without allowing a profit.
3. Allowable Deduction ( used to maintain the property)
• Residential 30%
• Other than residential 32%
4. The tax is payable next year after evaluation and assessment of the property. The Real Estate Tax Office will notify the concerned citizen in writing or by notice to be published in designated office in the Local Government.
5. The tax is payable in two installments. First installment is on or before end of June of the succeeding year and second installment is payable on or before end of December of the succeeding year. The tax can also be paid at one time.
6. Penalty/Surcharge
• Non compliance to new tax law. That is a failure to register their property before March 31, 2010 will result to a penalty ranging from 200 Egyptian up to 2000 Egyptian pounds.
• Failure to pay the tax will result to a surcharge from 1000 up to 5000 egyptian pounds plus 2% interest on every day of delay based on unpaid taxes.
7. How is the tax calculated?
A. The property will be assessed by the council authorized by the Government. Sixty percent (60%) of the assessment based on market value will serve as the bases in calculating the annual rent value.
B. An allowable deduction of 30% is given for residential property and 32% for non residential.
C. Annual rent is determined by getting 3% of the difference between A & B
D. After annual rent is determined in (C),deduct 6000 Egyptian pounds as exemption for residential property (given in #2).
E. Tax due will be 10% of net of annual rent and exemption (for residential property)
Properties valued at 500,000 Egyptian pounds and up will be subjected to tax therefore property which is less than 500,000 Egyptian pounds is exempted from paying the tax.
Example: A property is appraised at 600 000 Egyptian pounds, How much is tax due for Residential?
For Non Residential?
Calculation:
Residential Non Residential
A. Assessment of the property 600 000 600 000
Capital value 360 000 360 000
B. Less: 30% Allowable deduction for residential property
(used for maintaining the property) (108 000) (115 200)
Tax base 252 000 244 800
C. Annual rent value (3% of tax base) 7 560 7 344
D. Less: Exemption limit (for residential ) ( 6 000 ) __
Net tax base 1 560 7 344
Multiply by 10% x 10% x 10%
Tax due 156 734.4
====== =======
8. The Appreciation and Enumeration Council are the authority responsible in evaluating and assessing the property. The council will start evaluate the property next year which means no tax to be paid this year.
Also , the Appreciation and Enumeration Council will make assessment for each property every 5 years. After 5 years is completed, re-assessment on the property will be done. Property will be appraised not exceeding 30% of the first assessment for residential property and 45% of the first assessment for non residential property.
When evaluation is completed for each property and tax due is determined, the Tax Office will inform each owner officially and notify as when and where you can pay the tax.
Should you need assistance in registering your property in the Tax Office, we are offering our services. We will need the following;
1. Copy from the purchase contract. If you have more than one property, we need copy of contract for each property
2. Copy from the passport of the owner or his/her ID
3. Power of Attorney to act accordingly in front of the Egyptian Authority.
Note:
a. For Non Egyptian who are coming to Egypt before the given due date, Power of Attorney can be done here in Egypt
b. For Non Egyptian living outside Egypt and could not come before the given due date we are attaching herewith Power of Attorney form to be filled in and stamped and registered in the Egyptian Consulate in the country of your residence. After you completed the Power of Attorney, to send it to our office address at:
United Lawyers Company
Villa 11014 Village Road Touristic Center
Hurghada Red Sea Egypt
PO Box 422
Make sure we receive the Power of Attorney before March 31, 2010 to enable us to complete the work.
4. The registration to be completed will take 2 working days.
If you have further concern, please do not hesitate to contact us.
United Lawyers Company
Villa 11014 Village Road, Touristic Center
Hurghada Red Sea, Egypt
Tel: 002 (065) 346 2071
Fax: 002 (065) 346 2072
Mob: 002 010 700 5560
002 010 113 8400
[
Dear Sir/Madam,
Once again we would like to remind you that the last day of registration of property in the Registry Tax Office is March 31, 2010.
The registration calls for all Egyptian or Non Egyptian property owners in Egypt of buildings residential or commercial, apartment, villa, shop to register their property in the Real Estate Tax Office on or before the given due date.
See guideline below regarding the new Real Estate tax law;
1. Property (ies) subject to tax
• New built properties residential or commercial
• All kinds of properties that were built and not registered in the Tax Office
• Each unit in a building is subject to tax whether the unit is completed and occupied; completed and not occupied OR even it is not completed but is occupied.
2. Exemption
• Residential property whose annual rent is 6000 Egyptian pounds and below (Although exempted from paying tax, the concerned citizen must register their property not later than March 31, 2010).
• Property whose market value after assessment is 500 000 Egyptian pounds and below (Although exempted from paying tax, the concerned citizen must register their property not later than March 31, 2010).
• Others
a. Buildings owned by labor associations & organizations that are registered and specialized for their managing offices.
b. Educational institutions, hospitals, infirmaries, orphanages and charity associations.
c. Quarters for political parties and professional organizations.
d. Enclosed graves and buildings of graveyards.
e. Buildings for youths & sport centers.
f. Buildings owned by foreign governmental authorities (such as foreign embassies),provided that the treatment shall be the same.
g. Building that is used in connection with agriculture
h. Building that is used for social occasions without allowing a profit.
3. Allowable Deduction ( used to maintain the property)
• Residential 30%
• Other than residential 32%
4. The tax is payable next year after evaluation and assessment of the property. The Real Estate Tax Office will notify the concerned citizen in writing or by notice to be published in designated office in the Local Government.
5. The tax is payable in two installments. First installment is on or before end of June of the succeeding year and second installment is payable on or before end of December of the succeeding year. The tax can also be paid at one time.
6. Penalty/Surcharge
• Non compliance to new tax law. That is a failure to register their property before March 31, 2010 will result to a penalty ranging from 200 Egyptian up to 2000 Egyptian pounds.
• Failure to pay the tax will result to a surcharge from 1000 up to 5000 egyptian pounds plus 2% interest on every day of delay based on unpaid taxes.
7. How is the tax calculated?
A. The property will be assessed by the council authorized by the Government. Sixty percent (60%) of the assessment based on market value will serve as the bases in calculating the annual rent value.
B. An allowable deduction of 30% is given for residential property and 32% for non residential.
C. Annual rent is determined by getting 3% of the difference between A & B
D. After annual rent is determined in (C),deduct 6000 Egyptian pounds as exemption for residential property (given in #2).
E. Tax due will be 10% of net of annual rent and exemption (for residential property)
Properties valued at 500,000 Egyptian pounds and up will be subjected to tax therefore property which is less than 500,000 Egyptian pounds is exempted from paying the tax.
Example: A property is appraised at 600 000 Egyptian pounds, How much is tax due for Residential?
For Non Residential?
Calculation:
Residential Non Residential
A. Assessment of the property 600 000 600 000
Capital value 360 000 360 000
B. Less: 30% Allowable deduction for residential property
(used for maintaining the property) (108 000) (115 200)
Tax base 252 000 244 800
C. Annual rent value (3% of tax base) 7 560 7 344
D. Less: Exemption limit (for residential ) ( 6 000 ) __
Net tax base 1 560 7 344
Multiply by 10% x 10% x 10%
Tax due 156 734.4
====== =======
8. The Appreciation and Enumeration Council are the authority responsible in evaluating and assessing the property. The council will start evaluate the property next year which means no tax to be paid this year.
Also , the Appreciation and Enumeration Council will make assessment for each property every 5 years. After 5 years is completed, re-assessment on the property will be done. Property will be appraised not exceeding 30% of the first assessment for residential property and 45% of the first assessment for non residential property.
When evaluation is completed for each property and tax due is determined, the Tax Office will inform each owner officially and notify as when and where you can pay the tax.
Should you need assistance in registering your property in the Tax Office, we are offering our services. We will need the following;
1. Copy from the purchase contract. If you have more than one property, we need copy of contract for each property
2. Copy from the passport of the owner or his/her ID
3. Power of Attorney to act accordingly in front of the Egyptian Authority.
Note:
a. For Non Egyptian who are coming to Egypt before the given due date, Power of Attorney can be done here in Egypt
b. For Non Egyptian living outside Egypt and could not come before the given due date we are attaching herewith Power of Attorney form to be filled in and stamped and registered in the Egyptian Consulate in the country of your residence. After you completed the Power of Attorney, to send it to our office address at:
United Lawyers Company
Villa 11014 Village Road Touristic Center
Hurghada Red Sea Egypt
PO Box 422
Make sure we receive the Power of Attorney before March 31, 2010 to enable us to complete the work.
4. The registration to be completed will take 2 working days.
If you have further concern, please do not hesitate to contact us.
United Lawyers Company
Villa 11014 Village Road, Touristic Center
Hurghada Red Sea, Egypt
Tel: 002 (065) 346 2071
Fax: 002 (065) 346 2072
Mob: 002 010 700 5560
002 010 113 8400
[
C
CMChris
New Member
Its free to register and I will be doing it myself, having downloaded the forms (with English translation) from the internet. You don't need a solicitor to do any of this and certainly not at the exorbitant charges some of them are asking. The website is posted on this thread by Georgina somewhere, you'll need to trawl and find it.
C
CMChris
New Member
All done
I trundled along to the Property Tax Office in Hurghada and have now registered. I did take along a copy of my contract which they did want, but I think it depends on who's on 'duty' at the desk as to what's needed and what isn't. I'm just glad our Egyptian friend did come along because we chose the non English speaking clerks day!!! And the best part of it all was that I did it myself and no solicitor raked in mega LE in the process which was so easy. :biggrin: Behind the clerks were HUGE bundles of completed forms just piled on the floor, I really can't see these going anywhere fast if they actually do go.
I trundled along to the Property Tax Office in Hurghada and have now registered. I did take along a copy of my contract which they did want, but I think it depends on who's on 'duty' at the desk as to what's needed and what isn't. I'm just glad our Egyptian friend did come along because we chose the non English speaking clerks day!!! And the best part of it all was that I did it myself and no solicitor raked in mega LE in the process which was so easy. :biggrin: Behind the clerks were HUGE bundles of completed forms just piled on the floor, I really can't see these going anywhere fast if they actually do go.
M
Mussa1
New Member
Thanks CM, do you have the address and opening times for the property tax office in Hurghada, also how long did it take you to register the property. Did you get it all done on the first visit to the office?
C
CMChris
New Member
Now giving you the address is a big problem, I could show you where it is though 
. Its in Dahar and if you know where the Souk is you go along that road past the left turn to the souk and its the building on your left immediately after that. I've heard the tax inspectors are already doing property inspections and its not just the 'value' of your falt they count but the pool facilities, security etc when they 'value' your property.
. Its in Dahar and if you know where the Souk is you go along that road past the left turn to the souk and its the building on your left immediately after that. I've heard the tax inspectors are already doing property inspections and its not just the 'value' of your falt they count but the pool facilities, security etc when they 'value' your property. D
danny
New Member
One disreputable company has muted this, they may well want to collect a supposed tax on your behalf and keep it.Now giving you the address is a big problem, I could show you where it is though
Let's stick to the facts as we know it and not summise.
The stories I have read so far suggest that the tax office doesn't know it's @rse from it's elbow & the Government has still not decided the finer points of the tax law.
This confusion is just what Egyptian developers love so that they can scam some more money out of us.
Unless sometime in the future you get a tax bill, with your name on it, do not part with any money to any third parties.
