The real estate revenues due to Egypt act No 91 in 2005

Taxable revenues include the following:
1- Revenues from agricultural land.
2- Revenues from constructed real estate.
3- Revenues from furnished units.

Determining Taxable Revenues

Agricultural land revenue is determined as the rental value taken as a base for assessing the tax imposed according to the law, after deducting 30% for all costs and expenses.

Revenues from constructed real estate are determined on the basis of the gross rental value considered as the base for the tax imposed by law, after deducting 40% for all costs and expenses, in addition to the rental value of the private residence of the taxpayer and his family.
Revenues from the right of usufruct report are treated the same as revenues from wholly owned property.
The taxable revenue is determined on the actual rental value, reduced by 50% for all costs and expenses, for those revenues from the lease of real estate or part of it, according to the civil law provisions.

The taxpayer may request that the taxable income of realproperty, be calculated on the basis of the actual revenue, provided that his application includes all his agricultural lands and constructed real estate.
An application must be filed within the period set for the filing of annual returns, and the taxpayer must be maintaining proper books fulfilling the requirements stipulated in the Executive Regulation of this law.

The tax shall apply on revenues from renting any furnished unit or part thereof, whether it was intended for housing or for practicing a commercial or industrial activity or a non-commercial profession, or any other purpose. The taxable revenue is determined on the basis of the actual rental value, reduced by 50% for all costs and expenses.

A tax of 2.5% is imposed without any further reduction, on the gross revenues from the disposal of constructed real estate or lands within the cities’ boundaries, whether the disposal commenced on the land parcel as it exists or after constructing buildings thereon, whether the disposal is inclusive of the entire real estate or part of it or a residential unit thereof or a unit for any other purpose, and whether the buildings were constructed on land
owned by the taxpayer or by third parties.

Exceptions to this tax on disposals are those disposals by an heir of the real estate transferred to him through inheritance, and also when the property is offered as an in-kind share in the capital of shareholding companies, on the condition that the equivalent shares shall not be disposed of for five years.

Notary offices must notify the tax authority of the taxable notarized disposals, according to the provisions of this law, within thirty days from the date of notarization.
A taxable action of disposal implies a gift to other than descendents or husbands and wives or ascendants, or a right of usufruct assigned for the real property, or renting it for a period is less than fifty years. Compulsory sales, whether administrative or judicial, and dispossession or appropriation for public interest or improvement are not considered taxable actions of disposal. Likewise treated are donations or grants to the government, local Authority Units, public legal persons, or projects of public benefit (utility).