How tax burden is calculated for residential units in the new law?
It is calculated as follows:
a.Specifying the building's capital value which is 60% of its market value.
b.Specifying the building's annual rental value worth 3% of its capital value
c.Estimating the tax base via excluding 30% of the annual rental value of the building for maintenance cost on the taxpayer.
d.Taking away the exemption limit prescribed in the law for the residential unit which is L.E. 24000 per year for only one unit for the family.
e.Applying the 10% tax price of the net annual rental value resulted from the previous step.
The real estate tax is due on the first of January of each year, and it gets two equal installments, the first until the end of June and the second until the end of December of the same year, and the taxpayer may pay it in full on the date of paying the first installment.
Property taxes
The taxpayer is the natural person or the legal person who has the right to own, use or utilize the property, where the tenant is not considered a taxpayer, but is a joint partner with the taxpayer to pay the tax within the approved lease.
Taxpayer
25% of the proceeds of the real estate tax will be directed to the governorates for spending on education and health, and 25% of the entire proceeds will be allocated for the purposes of developing and developing slums.