Egypt Cabinet approves amendments to ease built property tax burden

Egypt’s Cabinet approved on Wednesday a draft law amending provisions of the Built Real Estate Tax Law, a move aimed to ease the financial burden on property owners and modernise tax administration.

The reforms, endorsed during a Cabinet meeting chaired by Prime Minister Moustafa Madbouly, form part of the first phase of a government-led tax facilitation package aimed at balancing economic and social considerations for taxpayers.

Key changes include raising the tax exemption threshold on owner-occupied residential properties from 24,000 to 50,000 Egyptian pounds in annual rental value, a move designed to shield middle-income households amid rising inflation. The amendments also introduce a cap on late payment penalties and a temporary waiver on accrued penalties for taxpayers who settle outstanding principal amounts within a designated grace period.

Additionally, the government is simplifying tax return filings by allowing taxpayers with multiple properties to submit a single consolidated declaration, with a phased shift from paper to electronic submissions planned. New provisions also mandate cooperation from local utilities and administrative bodies to provide accurate property data to tax authorities, improving the accuracy of property valuation and assessment.

The law further enhances taxpayers’ rights by permitting electronic appeals against property valuations and mandating earlier reassessment cycles to reflect market changes promptly.

“These reforms reflect Egypt’s commitment to easing the tax burden on citizens while enhancing transparency and efficiency through digital transformation,” a statement by the Egyptian Cabinet read. “They are essential to sustaining social equity and encouraging compliance amid evolving economic challenges.”

The amendments respond to practical issues exposed during the implementation of the existing tax framework, which has faced criticism for complexity and enforcement challenges. By introducing clear rules for tax relief in cases of property damage or force majeure, the government aims to provide greater flexibility to affected taxpayers.

Egypt’s property tax revenue remains a key component of its fiscal strategy to diversify income sources and finance public services. The latest reforms underscore Cairo’s balancing act between revenue generation and protecting vulnerable taxpayers during economic uncertainty.

Attribution: Amwal Al Ghad English