Housing Ministry invites public input on white land tax draft amendment

Headquarters of the Ministry of Municipal, Rural Affairs and Housing 

Ministry of Municipal and Rural Affairs and Housing invited public to express their views on the draft amendment of white land tax law and its executive regulations, through “Istitlaa” platform until March 24, 2023.

The amendment aims at a comprehensive concept of residential and commercial-residential uses. It imposes a tax 2.5% higher than the value of the land.

The draft stipulates for reducing the registration period and clarifying the type of decision to be communicated to landowner.

Moreover, it grants the minister the power to amend the executive regulations based on the proposal of the ministerial committee, constituted as per Article 14.

New definitions were added to Article 1 of the executive regulations.

As per the draft, the tax shall be imposed on a single-phase process.

Article 3 of the draft stipulates that an annual tax shall be imposed on white lands (that are not directly state-owned, but rather owned by one or more natural or legal persons) according to area specified by the minister. This is provided that it shall not be less than 5,000 square meters, at a rate of no less than 2.5% of the land estimated value.

According to Article 14, the committee may impose up to 10% tax of the land estimated value based on specific criteria. This includes the land location and uses, construction system, available services, accessible utilities, population density, supply and demand, as well as economic and social aspects.

Under Article 5, owners of taxable lands shall submit to the ministry their lands’ related documents within the period specified by the ministry, not exceeding six months from the date of the announcement.

The landowner shall be notified of the tax amount in accordance with the notification mechanisms set forth in the regulations.

Amended Article 6 of the executive regulations explains that the tax application shall be based on whether the land is developed or undeveloped.