Real estate tax “returns” paid by owner or tenant?
The real estate tax, or “returns tax” as many citizens know it, is not a new tax imposed on residential buildings, but it is a tax already imposed under Law No. 56 for the year 1954, and it was amended by Law No. 196 for the year 2008, and its provisions were reorganized by the current Law No. 117 for the year 2014.
Real Estate Tax Law No. 56 of 1954, amended by Law No. 117 of 2014 penalties, imposes fines on evaders from paying the real estate tax on all properties built on Egyptian land, except for the properties exempted under the law.
According to the law, those who fail to pay the real estate tax, whether the first installment or the second installment, will be fined by paying a delay fee of no more than 2% of the amount required to be paid for the tax, provided that the interest rate announced by the Central Bank of Egypt at the timing of the taxpayer’s request for payment should be applied.
The law warns those responsible for paying the tax against implementing administrative seizure, whether on the property for which a tax is due or the movables inside the property owned by the taxpayer, in the event of non-payment of the tax. There is also the possibility of collecting the rental value from the tenants of the property from the residents, as long as it does not exceed the value of the tax, and giving the tenants receipts indicating the collection of the tax.
Al-Ahram Gate