Beginning survey of state real estate to collect real estate taxes
The Real Estate Taxation Authority (RTA) initiates a survey and assessment of real estate subject to Act No. 159 of 2023 on the elimination of tax exemptions and fees for State entities in investment activities. This is to remove preferential treatment in order to ensure equality and fair competition .There are 7 procedures that RTA is working on to implement the law, which are:
1 - A sufficient number of survey and assessment committees are formed in each governorate in accordance with the law - and according to the actual needs determined by the head of the region in light of the size and diversity of the assessed real estate(industrial/hotel/petroleum/quarries/mines/
Salina /non-residential). These committees are responsible for surveying and valuing state-owned real estate in the broadest sense.
2 - The annual rental value used as a basis for calculating the tax on built properties will be estimated through the relevant committees after accurately counting it, provided that the tax is calculated as of July 26, 2023.
3 - Addition decisions are made immediately after the competent committees finish their work, and any of the executive procedures related to notification and requests for other procedures are not initiated until after publication in the Official Gazette.
4 - Providing the Department with a detailed statement of the units that have been inventoried, classified according to type of activity, provided that the statement is updated periodically in conjunction with annual developments.
5- Providing the Authority with the amounts collected resulting from the implementation of this law on a monthly basis, independently within the scope of each mission.
6 - Collection by amicable means, and in the event of non-response, the Department will be provided with a file for each case to be presented to the Minister of Finance for coordination with the competent ministry in the collection procedures by cash payment or through legal clearing.
7 - Completion of the survey and estimation work no later than the end of the current fiscal year 2023/2024.
RTA has identified examples of units that should be assessed, which are: public sector companies, the public business sector, holding companies, the governorate’s properties ,local government units, such as public markets, fish farms, etc., clubs and hotels of sovereign entities, communities, medical centers, hospitals, clinics, gas stations, and tourist villages and other places exploited for economic, investment and commercial purposes, and in general every commercial or investment activity that is practiced through sovereign bodies, local administration units, national public, service and economic bodies, and agencies that have special budgets.
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