Amendments and facilities for real estate taxes
شاهد الإعلان
- Raising the tax exemption limit
The tax exemption limit has been increased for the unit that the taxpayer uses as a private residence for himself and his family (husband, wife, minor children) in line with the philosophy of the law, taking into account the social dimension in light of the effects of the inflation and the decline in the purchasing power of money. The exemption limit was increased to (100 thousand pounds). (The value of the exemption reaches 8 million pounds per unit)
- Single declaration and electronic payment:
1. To facilitate the process for property owners with multiple properties within the jurisdiction of more than one tax office by allowing them to submit a single declaration to any of these offices instead of submitting a declaration to each office.
2. Allowing a gradual transition from paper-based to electronic declaration submission.
- For unregistered units:
Property tax will be levied on properties that have not been surveyed and listed in the real estate tax records, effective from the date of filing the tax return.
Objective: To encourage taxpayers to file their tax declarations without fear of retroactive taxation and to enhance confidence in the tax system.
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- 25% Discount
(a) Granting an incentive to taxpayers who submit a tax deduction declaration for the annual tax due during the tax period.
Proposed incentive rates: (25%) for residential properties and (10%) for non-residential properties.
(b) Introducing an incentive for prepayment of taxes pending the completion of the rental value assessment by the relevant committees, which serves as the basis for calculating property tax.
This incentive aims to encourage taxpayers to submit tax deduction declarations for prepayment, according to the categories determined by the Minister of Finance.
Incentive rate: A 5% discount on the tax due after the committees complete their assessments
- Cancellation of Penalties:
Introducing a provision that sets a maximum limit for late payment penalties, not exceeding the principal tax debt.
Setting a maximum limit for late payment penalties, ensuring they do not exceed the principal tax debt, and waiving late payment penalties for all those who paid their taxes before the law came into effect, as well as those who will pay after the law's issuance, for a period of six months.
The amendment aims to increase the number of beneficiaries of the late payment penalty waiver to include those who paid before the law's implementation or within six months of its implementation, thus achieving fairness among taxpayers and increasing the number of beneficiaries of tax relief measures.
- Elimination of Government Appeals:
The authority of real estate tax districts to appeal rental valuations has been revoked, and appeals can now be filed electronically to facilitate the process for taxpayers.
A provision has been introduced to preserve pending government appeals submitted by real estate tax districts that have not yet been adjudicated by the effective date of this law.
Objective of the Amendment: To achieve legislative consistency with the amendment proposed in the draft law, which eliminated the government's appeal authority, thereby strengthening trust in the tax authority and responding to public opinion regarding the protection of taxpayers' legal rights.
- Settlement in Tax Disputes:
Settlement is permitted in disputes pending before appeals committees or courts of various levels, in exchange for payment of 70% of the disputed tax amount. This requires a request submitted to the Tax Authority within six months of the law's effective date. The Minister of Finance may extend this period by six months once.
Objective of the Amendment: To expedite the resolution of tax disputes, thereby ensuring the stability of the tax base.
- Tax Vision Aims for:
1 - Reducing the Burden: Alleviating the tax burden while considering social and economic factors.
2 - Simplifying Procedures.
3 - Digital Transformation: Digital transformation of key tax functions.
4 - Addressing Shortcomings: Addressing shortcomings revealed by practical application.
- Tax Relief for Taxpayers During Crises:
The inability of a taxpayer to utilize a property due to its demolition or damage has been added to the grounds for tax relief, similar to the right of usufruct.
A new clause has been introduced allowing for tax relief for taxpayers if emergency circumstances or force majeure prevent them from utilizing or benefiting from a built property.
Tax relief procedures have been simplified, and the date of occurrence of any tax relief provision has been considered instead of the date of application.
- Forgiveness of Tax Debts and Late Payment Penalties in Specific Cases:
A provision has been introduced allowing for the forgiveness of tax debts and late payment penalties that cannot be collected in the circumstances specified in the newly introduced text.
The tax relief mechanism will be organized through committees established by a decision of the Minister of Finance or their designee. This decision may be withdrawn within the legally prescribed period if it is found to be based on an invalid reason.
