In a bid to reach a conclusion on how Egyptians perceive property taxes in Egypt, Invest Gate took to the streets of Cairo, asking one simple question “Do you know how to calculate property taxes?”  Almost all answers received were negatory, indicating a gap in the information offered to regular homeowners.

When it comes to how these taxes are determined, the Ministry of Finance and Real Estate Tax Authority formulated equations for three kinds of properties.

To simplify the math behind calculating property taxes, and based on the detailed tables for each kind, Invest Gate divided the state’s methodology into three examples.

Before delving into the examples two points are worth noting. Firstly, tax exemption is a set value by the state where properties valuing below the set figure are exempt from taxes, and properties above set figure enjoy a discount of the amount.

Secondly, the standard equation used is based on the net rental value which equals 70 percent of the annual rental value for residential properties and 28 percent for commercial ones. Due taxes are then calculated by subtracting the tax exemption value from the net rental value, and multiplying the result by 10 percent.

One: Residential Unit, Inhabited by the Owner

For this type of property a tax exemption worth EGP 24,000 applies. This means that if the annual rental value of the property is estimated at EGP 36,000, for example, then:

The Net Rental Value = 70% × the annual rental value (EGP 36,000) = EGP 25,200.

The Tax Base is then calculated by deducting the tax exemption amount for this category from the net rental value = 25,200 – 24,000 = EGP 1,200.

The Tax Value = 10% × The Tax Base (EGP 1,200) = EGP 120.

Which means the owner will pay a total amount of EGP 120 per year for said property.

Two: Residential Unit, Uninhabited by the Owner nor Rented

For this type of property there is no tax exemption. Using the same annual rental value of EGP 36,000 as an example, then:

The Net Rental Value = 70% × the annual rental value (EGP 36,000) = EGP 25,200.

Since no exemption applies for this category then the tax base is equal in value to the net rental value = EGP 25,200.

The Tax Value = 10% × The Tax Base (25,200) = EGP 2,520.

Which means the owner will pay a total amount of EGP 2,520 per year for said property.

Three: Administrative or Commercial Unit

For this type of property a tax exemption worth EGP 1,200 applies. This means that if the annual rental value of the property is estimated at EGP 36,000, for example, then:

Net Rental Value = 28% × the annual rental value (EGP 36,000) = EGP 10,080.

The Tax Base is then calculated by deducting the tax exemption amount for this category from the net rental value = 10,080 – 1,200 = EGP 8,880.

The Tax Value = 10% × Tax Base (EGP 8,880) = EGP 888.

Which means the owner will pay a total amount of EGP 888 per year for said property.

Filing property taxes can be either done through the website by filling a form, or through heading to the Real Estate Tax Authority; a procedure that has been made easier since 2014.

كيف تحسب الضريبة العقارية؟

هناك ثلاث شرائح لحساب الضريبة العقاريه، هم مسكن مملوك و خاص بالمالك، مسكن مملوك و غير مأهول او مؤجر لشخص آخر، و عقار تجاري أو اداري

لكل قيمة رأس مالية للعقار، هناك قيمة ايجارية سنوية مقابلة كما موضح بجداول مصلحة الضرائب العقارية و يتم حساب الضريبة السنوية بناء على الشريحة المنتمي لها و هي كالتالي

مسكن مملوك و خاص بالمالك

 حد اعفاء ضريبي و هو 24،000 جم

مثال: اذا كانت القيمة الايجارية السنوية المقابلة لقيمة العقار 36،000 جم فصافي القيمة الايجارية تكون 70% × (القيمة الايجارية السنوية) 36،000 =  25,200 جم

أما الوعاء الضريبي المقابل فهو عباره عن  صافي القيمة الايجارية مخصوم  منها حد الاعفاء = 25,200 – 24,000 = 1,200 جم

الضريبة = (نسبة الضريبة ) 10% × الوعاء الضريبي (1,200) = 120 جنيه سنويا

مسكن مملوك و غير مأهول او مؤجر لشخص آخر

 لا يوجد حد اعفاء ضريبي

مثال: اذا كانت القيمة الايجارية السنوية المقابلة لقيمة العقار 36,000 جم

فان صافي القيمة الايجارية= 70% × (القيمة الايجارية السنوية) 36,000 = 25,200 جم

الوعاء الضريبي المقابل= صافي القيمة الايجارية – حد الاعفاء = 25,200 – 0 = 25,200 جم

الضريبة = 10% × الوعاء الضريبي  (25,200) = 2,520 جم سنويا

عقار تجاري أو اداري

حد الاعفاء الضريبي 1,200 جنيه

مثال: اذا كانت القيمة الايجارية السنوية المقابلة لقيمة العقار  2,700 جم

فان صافي القيمة الايجارية = 68% × (القيمة الايجارية السنوية) 2,700 =  1,836 جم

الوعاء الضريبي المقابل= صافي القيمة الايجارية – حد الاعفاء = 1,836 – 1,200 = 636 جم

الضريبة = 10% × الوعاء الضريبي (636) = 63.6 جنيه سنويا

By Eman El Sherbiny