“Finance”: Tax on real estate transactions when registering in the real estate month “paid by the seller”

Dr. Mohamed Maait, Minister of Finance, confirmed that we have not imposed a new tax on real estate transactions and that there is no intention to increase the charges on citizens, and we only aim to obtain the right of the legally established state to improve spending . on improvement of the standard of living and public services, explaining that the property tax has been approved since 1939 and was reduced as of 1996 from 5% to 2.5% of the sale value of the properties shown or construction land, whether the the disposition of the same was in its state or after the establishment of the facilities, or it was in the whole or part of the property or a dwelling unit of the same or otherwise.

A statement from the Ministry of Finance indicated that all the properties and housing units of the towns and their subsequent inflorescences, hamlets and farms are exempt from the real estate alienation tax, as well as from the actions of the heir until July 25, 2018, in real estate that have to be transferred to him from his heir in his condition of succession, in addition to the property presented as participation in kind in the head The money of the corporations, provided that the corresponding shares are not alienated for a period of five years, indicating that the real estate sale with donation of goods is exempt from the real estate transfer tax and that the determination of the right of usufruct or lease of the property for a period exceeding fifty years is subject to this tax.

The statement added that the real estate administrator is obliged to pay the tax within thirty days from the date of “alienation of real estate” – for example, sale of an apartment – and that the delay in the return of the law stipulated in the Income Tax Law applies from the day after the expiration of thirty days, explaining that the real estate alienation tax applies only to natural persons. It is not subject to legal persons.

The statement confirmed that all parties, whether they are real estate registration offices, electricity and water companies, local administration units and others, refrain from registering the property subject to disposal or providing service unless the interested party proves the payment of the tax on this property.

The statement indicated that there is confusion among many people between the real estate tax (formerly Al-Awaid) and the real estate disposition tax, indicating that the real estate tax is part of the income tax that is paid. once at the time of disposition of the property. Since such behavior generates income for the disposer or the seller, for example.

The statement clarified that property tax is levied on built properties, and is paid by the annual return, and that private housing is exempt even less than 2 million pounds, and if its market value reaches 2 million pounds, so the real estate tax due is estimated at just 120 pounds annually.

The Finance Minister’s media office had monitored many comments on social media that included inaccurate information about the property tax, indicating clear confusion between it and the property tax.