{"id":655910,"date":"2024-11-26T00:00:00","date_gmt":"2024-11-26T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/11\/26\/govt-considers-permanent-property-tax-exemption-for-factories-residential-tax-reforms-and-customs-overhaul\/"},"modified":"2024-11-26T00:00:00","modified_gmt":"2024-11-26T00:00:00","slug":"govt-considers-permanent-property-tax-exemption-for-factories-residential-tax-reforms-and-customs-overhaul","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/11\/26\/govt-considers-permanent-property-tax-exemption-for-factories-residential-tax-reforms-and-customs-overhaul\/","title":{"rendered":"Gov\u2019t considers permanent property tax exemption for factories, residential tax reforms, and customs overhaul"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Big reforms to the tax and customs systems are in the works: <\/strong>The government is mulling a permanent exemption for factories from property taxes and either raising the residential tax exemption cap or doing away with it altogether for first homes, Deputy Finance Minister for Taxes Sherif Al Kilani told EnterpriseAM. The measures are part of a broader plan to revamp the property tax law and resolve ongoing disputes.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Factories in the clear:<\/strong> While factories already enjoy a temporary three-year exemption introduced in 2022 and extended for <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/46b3597b-f3a0-4bee-9053-2d6852f05893\/\" style=\"\" rel=\"noopener\">key sectors<\/a> until the end of 2026, Al Kilani said the government is now exploring a permanent exemption as part of its push to bolster local industry, reduce costs, and promote industrial growth. There are also other alternatives on the drawing board, with consultants set to be hired to undertake a thorough data-driven study.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>There\u2019s also some encouraging news for factories built on non-industrial land: <\/strong>The state is looking into legalizing the status of factories built on non-industrial land that kicked off operations before October 2023 and meet certain requirements, according to an Industry Ministry <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid037zdh6Gx5L6j3QeCjyeNJ1WfQHSYdhGQT21cLBRQbpMVMVpBQqFot4TJ3Zjnm1TMrl\" style=\"\" rel=\"noopener\">statement<\/a> out earlier this week.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The tax man may also soon be taking a different approach to residential properties: <\/strong>The law currently sets an exemption limit of EGP 2 mn for residential properties, a threshold that Al Kilani says is outdated due to inflation and rising property prices. The ministry is considering either raising the cap or exempting private family residences entirely, while taxing additional properties. A phased rollout of the revised law is under consideration, starting with areas that have seen significant urban expansion, such as the North Coast, Sheikh Zayed, and the Fifth Settlement, before expanding nationwide, Al Kilani told us.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Property tax may soon undergo a digital transformation:<\/strong> The ministry plans to launch an automated platform to simplify property tax management. A consultancy firm will be hired to oversee its implementation and ensure it aligns with market realities, according to the deputy minister<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Changes to customs procedures are also in the cards: <\/strong>The government is also revisiting customs procedures to align with global standards and improve efficiency. There is also a plan to create deterrences for those trying to cheat the system that do not rely on fines that some importers simply use as a way to circumvent customs procedures for a fee. Alongside this, Egypt plans to introduce a four-tier system \u2014 green, red, blue, and orange \u2014 for importers, allowing for faster clearance for compliant businesses. Currently, only the green and red pathways are used, leading to delays.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Tightened oversight is part of the plan: <\/strong>Temporary admission, duty drawbacks, and other customs exemptions are being restructured to close loopholes and ensure fair competition. The changes aim to address issues such as abuses in exemptions for disabled vehicle imports, while responding to the business community\u2019s demands for transparency, Al Kilani told us.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The measures are part of a broader plan to revamp the property tax law and resolve ongoing disputes<\/p>\n","protected":false},"author":1,"featured_media":655911,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7382],"tags":[309,72,187,69],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-655910","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax","tag-customs","tag-enterpriseam","tag-legislation-watch","tag-tax","wpautop","entry"],"acf":{"mongo_id":"d422c6ce-5c20-475f-9d53-413282e26c1c","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/9\/1817.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Gov\u2019t considers permanent property tax exemption for factories, residential tax reforms, and customs overhaul","related_issue":[655905],"teaser":"The measures are part of a broader plan to revamp the property tax law and resolve ongoing disputes","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/11\/.ddff9ab8-8ed9-4742-be1a-3eabbc65733a.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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Industry could be getting a leg up from the government if the Madbouly Cabinet agrees to accept a proposal being drafted by the Trade Ministry and exempt factories from the real estate tax. The statement does not provide\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":568334,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/12\/27\/no-real-estate-tax-exemption-for-industry-but-maybe-a-rate-cut\/","url_meta":{"origin":655910,"position":1},"title":"No real estate tax exemption for industry, but maybe a rate cut","author":"enterpriseam admin","date":"27 December 2020","format":false,"excerpt":"Factories will not be getting the real estate tax exemption they have been vying for, but could instead see a significant reduction in their property tax dues under a new draft bill the finance and trade and industry ministries have drafted, the local press reports, citing unnamed government sources. The\u2026","rel":"","context":"In &quot;LEGISLATION WATCH&quot;","block_context":{"text":"LEGISLATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/legislation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/12\/437.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":638204,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/08\/11\/govt-considers-raising-income-tax-exemption-threshold\/","url_meta":{"origin":655910,"position":2},"title":"Gov't considers raising income tax exemption threshold","author":"enterpriseam admin","date":"11 August 2024","format":false,"excerpt":"The income tax exemption threshold could rise by 20-25% to match inflation rates","rel":"","context":"In &quot;Tax&quot;","block_context":{"text":"Tax","link":"https:\/\/enterpriseam.com\/egypt\/category\/tax\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/8\/820.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":567464,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/01\/23\/cabinet-approves-partial-property-tax-exemption-for-factories\/","url_meta":{"origin":655910,"position":3},"title":"Cabinet approves partial property tax exemption for factories","author":"enterpriseam admin","date":"23 January 2020","format":false,"excerpt":"CABINET WATCH- Cabinet approves partial property tax exemption for factories: The Madbouly Cabinet approved draft amendments to the Real Estate Tax Act that exempts idle land from property tax, according to a cabinet statement. The amendments also grant the cabinet the power to exempt land used by strategic industries and\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/1\/682.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":643880,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/09\/17\/smes-are-getting-a-boost-with-new-targeted-tax-incentives-package\/","url_meta":{"origin":655910,"position":4},"title":"SMEs are getting a boost with new targeted tax incentives package","author":"enterpriseam admin","date":"17 September 2024","format":false,"excerpt":"The measures aim to incentivize voluntary compliance with tax policy and ease the incorporation of the informal economy into the tax base","rel":"","context":"In &quot;Tax&quot;","block_context":{"text":"Tax","link":"https:\/\/enterpriseam.com\/egypt\/category\/tax\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/9\/1106.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":680225,"url":"https:\/\/enterpriseam.com\/egypt\/2026\/01\/07\/manufacturers-could-get-an-extension-of-their-property-tax-break\/","url_meta":{"origin":655910,"position":5},"title":"Manufacturers could get an extension of their property tax break","author":"enterpriseam admin","date":"7 January 2026","format":false,"excerpt":"The exemption is set to expire this month","rel":"","context":"In &quot;Tax&quot;","block_context":{"text":"Tax","link":"https:\/\/enterpriseam.com\/egypt\/category\/tax\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/1\/1760.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/655910","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=655910"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/655910\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/655905"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/655911"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=655910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=655910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=655910"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=655910"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=655910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}