Tax experts project EGP 15bn revenue boost following Old Rent Law ratification
Ashraf Abdel Ghany, tax accountant and founder of the EATE, said that, according to data from the Central Agency for Public Mobilization and Statistics (CAPMAS), Egypt has nearly 42 million housing units, comprising freehold, old rent, and new rent properties. Of these, 3.018 million units—covering apartments, houses, shops, and garages—fall under old rent contracts, representing about 7% of all housing units nationwide.
Abdel Ghany noted that Law No. 49/1977 had exempted old rent units from all types of property taxes, both original and additional, and excluded their revenues from the general income tax base. However, under the newly ratified law, these exemptions will be abolished, meaning old rent units will now be subject to property tax, and their revenues will also be included in the general income tax base.
The new law classifies old rent units into three categories. The first covers prime areas, where rental values will increase to 20 times the old rate, with a minimum rent of EGP 1,000. Most properties in this category are expected to be taxed. The second covers mid-range areas, where rents will rise to 10 times the old rate, with a minimum of EGP 400. About half of these units are expected to be subject to tax. The third category includes economic areas, where rents will also rise to 10 times the old rate, with a minimum of EGP 250. Properties in this category are not expected to be taxed.
Abdel Ghany explained that the law mandates survey committees to determine the rental value for each area within three months of its enforcement. The valuation will be based on factors such as geographic location, property size, road and transport networks, and the availability of utilities and services.
Once valuations are set, the property tax will be calculated at a rate of 10% of the net rental value, after deducting 30% as expenses for residential units and 32% for commercial and administrative units.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily News Egypt
2 hours ago
- Daily News Egypt
Egypt's TMG H1 profit jumps as sales hit record EGP 211bn
Talaat Moustafa Group Holding (TMG), Egypt's largest listed real estate developer, on Sunday reported a 69% jump in its first-half consolidated net profit after tax, driven by record real estate sales and strong growth in its hotel and services sectors. The company's consolidated net profit after tax rose to roughly EGP 8.1bn ($169m) in the first six months of 2025, up from EGP 4.8bn in the same period last year, the company said in a statement. Total revenues climbed 43% to around EGP 24.39bn. TMG's real estate sales reached a record EGP 211bn in the first half, a growth of over 59% from the EGP 133bn sold during the same period last year. The company said this was achieved without launching any new projects during the period. In a statement to the Egyptian Exchange (EGX), TMG said its performance was significantly boosted by its SouthMED project on the North Coast. The development generated EGP 106bn in sales and reservations during the first half, bringing its total cumulative sales to EGP 384bn in the year since its launch in July 2024. 'The figures reflect the brand's strength and customer confidence both at home and abroad, underscoring continued strong demand for the Group's projects,' the company's management said. The group's hotel sector recorded total revenues of EGP 7.17bn, a 39% increase from the same period last year. Recurring income and services generated revenues of EGP 4.6bn, a growth of 68%. TMG's backlog of contracted but undelivered sales reached EGP 363.7bn, a 48% increase from last year. The company said this backlog reflects a stable financial position and will be recognised as revenue upon delivery of units. Looking at the independent statements, net profit—excluding the results of subsidiary companies—came in at EGP 275m, a 4.3% increase from the first half of 2024. The company's board of directors, presided over by CEO and Managing Director Hisham Talaat Moustafa, approved the financial and operational performance report on Sunday.
Daily News Egypt
9 hours ago
- Daily News Egypt
China's Changzhou Ramada invests $22.6m in textile manufacturing at Qantara West
Walid Gamal El-Din, Chairperson of the Suez Canal Economic Zone (SCZONE), signed a partnership agreement this morning with Fan Yun, Chairperson of China's Changzhou Ramada, to establish a textile manufacturing facility at the Qantara West Industrial Zone. The $22.6m (EGP 1.130bn) investment will focus on the production of home textiles and apparel, creating 1,500 direct jobs. The new project, set to occupy an 80,000 sqm plot, is designed to produce around 5,000 tonnes of fabric annually, alongside 4 million sets of bed linen and 1 million car carpet sets. With 90% of production earmarked for export, the facility is poised to play a significant role in expanding Egypt's textile export capacity. Gamal El-Din emphasized that this is part of a broader effort by SCZONE to foster industrial growth in the region. To date, the authority has signed binding contracts for 32 projects within the Qantara West Industrial Zone, with total investments exceeding $822.2m. These projects span approximately 2,097,400 sqm and are expected to generate 45,600 direct jobs. 'These projects are primarily geared toward exporting the bulk of their production to global markets, capitalizing on the SCZONE's strategic location as a vital link between continents,' said Gamal El-Din. 'Our integrated industrial zones and ports make it easier for companies to connect with international markets, and this approach has proven successful in boosting export-oriented industries, particularly in the textiles sector.' The SCZONE Chairman also highlighted ongoing efforts to attract more investment to targeted sectors. He pointed to the imminent launch of several key projects in Qantara West, which will include both manufacturing facilities and essential infrastructure, further strengthening the zone's appeal. Along with a skilled local workforce, the SCZONE offers investors attractive incentives, reinforced by Egypt's political and economic stability, which continues to build confidence in the region as a premier investment destination. Founded in 2016 in Jiangsu Province, China, Changzhou Ramada Blanket Industry Co. Ltd. is a leading manufacturer with an integrated supply chain covering everything from raw materials like polyester filament fabric to finished products such as blankets, carpets, quilts, and bathrobes. The company specializes in the research, development, production, and sale of home textile products, with a portfolio that includes over 10 types of fabrics and more than 80 varieties of apparel fabrics. This new venture in Qantara West marks a significant step in the expansion of Egypt's textile sector and further strengthens its position in global textile manufacturing and export.
See - Sada Elbalad
10 hours ago
- See - Sada Elbalad
Alrosa to Launch Field Tests of Groundbreaking Diamond Recovery Technology in September
Waleed Farouk Alrosa has announced that it will begin field tests in September for a pioneering technology aimed at boosting productivity and speeding up diamond extraction, with plans to roll it out globally if successful. According to a statement on the company's website last week, the new unit will quadruple kimberlite ore processing capacity to 300 tonnes per hour. Innovative Diamond Separator The new technology—a diamond separator—will sort diamonds from waste rock by combining two methods: X-ray fluorescence (XRF) and radiography, enabling faster and more precise diamond recovery. Unlike previous stationary models, the universal separator features a containerized design, allowing for easy transport between sites and direct use at mining locations, including outdoor environments. A Globally Unique Design 'Andrey Naskailev, head of Alrosa's Innovation and Technology Center, said: 'The creation of the universal separator was carried out in close cooperation between teams from the Innovation and Technology Center, the Burevestnik Innovation Center, and the Udachny Mining and Processing Plant of Alrosa. Many technical solutions were developed from scratch—there is no equivalent to this device anywhere in the world.'' From Pilot Trials to Field Operations Following a series of successful pilot tests, Alrosa engineers produced a working prototype of the separator, which demonstrated stable performance across all systems during trials at the Burevestnik Center. The unit is now deployed at one of the company's processing plants and will undergo field testing next month. If results are positive, Alrosa plans to begin large-scale commercial production. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 Videos & Features Story behind Trending Jessica Radcliffe Death Video News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture Lebanese Media: Fayrouz Collapses after Death of Ziad Rahbani
