The Minister of Finance amends the implementing regulations of the Income Tax Act


Mohamed Maait, Minister of Finance, issued Resolution No. 491 for 2021 in order to amend certain provisions of the Regulations for the execution of the Income Tax Law promulgated by Law No. 91 of 2005.

Reda Abdel Qader, chairman of the Egyptian Tax Authority (ETA), said on Monday that the first paragraph of article 51 of the executive regulations will be replaced by the following:

“Pursuant to the provisions of article 42, the competent tax authority is notified of the taxpayer to pay tax on the form (8 buildings), and the taxpayer is required to inform the competent tax administration of the building taxable transfers via the electronic portal of the Egyptian tax administration or by any electronic means on the form (16 bis).

Abdel Qader added that in order to facilitate the procedures and complete the electronic services provided by ETA, a 16-bis form (notification of the transfer of a built property or a building plot) has been made available. available electronically on both the electronic declaration and the automated tax procedures system, and therefore the financier is required to submit a form (16 bis) electronically from the date on which it was made available on the electronic system.

He pointed out that in accordance with Article 42 of the Income Tax Law, property tax is levied at the rate of (2.5%) of the value of the property sold, without any reduction in the total value of the sale of built buildings. real estate or building land, as well as whether the contracts for these transactions are made public or not.

He explained that all real estate and residential units in the villages are exempt from property tax, as well as the actions of the heir until the promulgation of Law No. 158 of 2018 amending Law No. (91) of 2005, amending article 42., in buildings devolved by succession in their inheritance condition, in addition to buildings presented in kind in the capital of joint-stock companies on condition that the corresponding shares are not sold for a period of five years, as well as endowment contracts between assets and branches, nor is it considered a taxable assignment of forced sales and expropriation for the public good or improvement.

He stressed that the delivery of proofs indicating the payment of the property tax has been canceled in the event of a real estate declaration or provision of a service on the real estate being transferred, by Law n ° (5) of 2021.

He added that the owner is required to pay the tax within 30 days from the date of the “land transfer” and that it applies in return for the delay provided by the income tax law to counting from the day after the end of the thirty days. .

He added that in the case of the only act of a natural person with a tax file, the taxpayer is obliged to submit a form (16 bis) on the automated system of tax declarations, as well as to pay the value of the tax on real estate transactions on the system.

In the case of the only act of a natural person who does not have a tax file, Abdel Qader indicated that the financier undertakes several steps, which consist in going to the competent tax office with a copy of the contract of sale and the original visit contract, as well as a copy of the identity document, to open a tax file and obtain a tax identification number. Then the taxpayer creates an account on the automated tax declaration system under the tax registration number, to submit a form (16 bis) on the automated tax declaration system, as well as to pay the value of the tax on real estate transactions on the system.

Abdul Qader said that a form (16 bis inventory) is submitted electronically on the electronic reporting system www. and on the automated tax procedures system

He explained that the Integrated Communication Center receives all inquiries on hotline 16395 or via email [email protected]

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