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Monday, 18 March 2019

Prototype of digital system ready to appraise Egypt’s real estate assets ready

EXCLUSIVE- Prototype of real estate appraisal system ready, process to wrap up in a year: Ain Shams University has completed a prototype of the digital system it will use to appraise Egyptian real estate, engineering professor and head of the real estate appraisal program Mohamed Salheen tells Enterprise. A model database of property prices should be ready and presented to Cabinet within a year, according to Salheen. The survey will be conducted using up-to-date methodologies and with the help of geographic coordinate systems to arrive at location-based values. The system is part of the proposed amendments to the Real Estate Tax Act, which are largely aimed at reducing real estate tax discrepancies.

Tax appraisal to take into account property age, proximity to public services: Each 10 years in the life of a property will qualify it for a 10% reduction in taxes, up to a maximum of 50%. The property’s accessibility and proximity to public services and facilities will also be taken into account, Salheen added.

FinMin to revisit sector-specific agreements once appraisal wraps up: Once the appraisal process is complete, the Finance Ministry will review agreements it had reached back in September and in August with the oil and tourism ministries for the tax treatment of properties in oil, gas, mining and tourism sectors. The agreements had originally proposed that taxes on properties in these industries be determined using investment / development costs as bases. The revision will ensure a consistent method, based on asset replacement costs, is used across all sectors. The ministry will also find a legal solution for the tax treatment of industrial land that is either idle or used by factories as storage facilities.

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