The Tax Department has announced that according to the Central Body for the Equal Distribution of Burdens amending Law (No.2) of 2022 (N172(I)/2022, (circulated on the 18th of November 2022), the Tax Department will be responsible to impose and collect a 0.4% tax for the Central Body for the Equal Distribution of Burdens.
Imposition and Collection of a 0.4% tax on the sale of immovable Property, in accordance with the Central Body for the Equal Distribution of Burdens Law
It should be noted that the said tax, which has a retrospective effect, will apply to all sales completed from 22/2/2021 onwards.
In practice, the 0.4% tax as mentioned above will apply on:
- The transfers of immovable Property by virtue of sale and/or
- The sale of shares of a company that is not listed in an acknowledged Stock Exchange (regardless of percentage holding) and that directly or indirectly holds immovable Property with a recorded general estimation value under a General Valuation and Re-evaluation Survey.
Calculation of the tax
The amount of the Central Body for the Equal Distribution of Burdens tax will be calculated by and settled to the district Tax Department.
Regarding the sale of immovable Property, the 0.4% tax will be calculated based on the sale amount of the Property. In cases of sale of company shares, the tax will be calculated based on the latest general valuation value of the property attributed to the shares.
The above article is informative and does not correspond to legal advice.
For further information and the provision of specialised legal advice, please get in touch with your regular contact at Michael Chambers & Co. LLC, or send us an enquiry at [email protected].