The Egyptian Ministry of Finance has issued clarifications from the Tax Authority on the application of the 2.5% tax on real estate transactions (transfers). This includes confirmation that the 2.5% tax applies on transactions involving the sale of built property and land designated for construction, regardless of the value (no maximum value cap) and regardless of the date of the transaction contract. However, exemptions are provided for certain residential properties in villages and inherited properties. Further, an exemption is provided for contributions of property to the share capital of joint-stock companies, provided that the corresponding shares are not disposed of within five years. The release also notes that the House of Representatives is considering a draft bill that would provide for a lump-sum tax up to EGP 4,000 where the contract is dated before 19 May 2013, but until this is approved, the tax on real estate transactions will continue to apply as is at a rate of 2.5%.