Sun, 28 Feb 2021 - 02:48 GMT
File - Finance Ministry
CAIRO – 28 February 2021: The Egyptian Ministry of Finance reviewed the cases exempted from the real estate disposal tax.
It clarified in a statement that the cases exempted from the tax on real estate transactions according to the law, are "providing the property as an in-kind share in exchange for a share in the capital of a joint-stock company, provided that the corresponding shares are not disposed of for a period of five years."
The ministry added that the excluded cases are also compulsory sales, whether administrative or judicial, expropriation or appropriation for public benefit, and disposing of a donation or gift to the government, local administration units, public legal persons, or projects of public interest.
The excluded cases also include disposing of a will, donation or gift to the assets "father and mother" or offspring "children and grandchildren".
It indicated that residential or commercial units within any "compound" owned by legal persons (money companies, individuals’ companies, public sector companies, or public business sector companies) are not subject to the "real estate disposition" tax, as the net profit resulting from transactions arising from these units are sold for tax on "net commercial profits".
"Any compound that falls within the commercial activity of these owners or investing companies is subject to tax on the net commercial profits,” it added.