Penalty for refraining from paying real estate tax

Penalty for refraining from paying real estate tax
  • 2022-09-12

The real estate tax, or “revenues” as known by many citizens, is not a new tax imposed on residential buildings, but it is a tax already imposed under law no. 56 of 1954, and it was amended by law no. 196 of 2008. Its provisions were reorganized by the current law no. 117 of 2014.

The Real Estate Tax Law no. 56 of 1954, as amended by law no. 117 of 2014, has stipulated penalties and fines for those who evaded paying the real estate tax on all real estate built on the land of Egypt, except for the cases of exemptions stipulated by the Law.

According to the law, those who fail to pay the real estate tax, whether in the first or second installments, will be fined by paying a delay rate of no more than 2% of the due tax, provided that the interest rate announced by the Central Bank of Egypt is adopted at the time the taxpayer is required to pay.

In case of not paying the tax, tax collectors are not allowed, according to the law, to implement the administrative seizure, whether on the property for which a tax is due or the movables in the property owned by the taxpayer. The rental value may be collected from the tenants without exceeding the value of the tax. Tenants should be given receipts indicating the collection of the tax.

Ahram Gate