The Finance Ministry is set to waive all back taxes on unregistered properties or those missing from tax records in a major “goodwill” bid to expand the tax base through voluntary compliance, a government source tells EnterpriseAM. Part of a broader facilitation package approved by the House of Representatives, the roadmap ensures that no retroactive taxes will be collected — regardless of when a property was built — provided owners register of their own accord.

Primary residences will receive retroactive relief for past dues for two periods — from 2018 through the end of 2021, and from January 2022 through 2026, after which applicable units will be taxed. To further incentivize compliance, the ministry is offering a 25% markdown on residential units and a 10% markdown on commercial and administrative properties to voluntary registrants, as well as a 5% markdown for advance payments made before final valuations.

DATA POINT- The Finance Ministry expects to collect EGP 29 bn in property tax revenues this fiscal year, up from the EGP 18 bn penciled in in the budget.

In a move to reset the relationship with taxpayers, the ministry is capping late payment penalties at the original tax liability, waiving fees for those who settle within six months, and withdrawing all unresolved government appeals.

What’s next: The Real Estate Tax Authority is awaiting the official publication of the law to then form committees to handle valuation and inventory under the new guidelines to “prevent arbitrary assessments.”

And to make things easier: Authorities plan to launch a mobile application for property taxes, allowing taxpayers to pay dues online.

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