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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.