The Armenian government at the August 12 meeting adopted a decision, according to which the income tax refund on mortgage loans, starting from January 1, will gradually be ineffective.

The purpose of the decision is to restrain further expansion of the scope of the income tax refund system in the amount of interest paid by a natural person who is an employee, as well as to promote proportionate development of the territories of the republic in terms of urban development and economy.

The basis of the decision says that within the administrative borders of Yerevan City by zoning and by years the scope of the income tax refund system will be gradually reduced in the amount of the interest paid by a natural person. Particularly, the draft law proposes to set forth that the income tax refund system shall not be applied;

a. As of July 1, 2022 if the property is located in the first zone of Yerevan city

b. From January 1, 2023, if the property is located in the second zone of Yerevan city

c. From July 1, 2023, if the property is located in the third zone of Yerevan City

d. From January 1, 2025 if the property is located in other zones of Yerevan city

It is also defined that the proposed restrictions will apply to the apartments of private residential buildings and apartment buildings under construction permits issued after January 1, 2022.

Naturally, the adoption of the draft does not mean that the income tax refund should be discontinued for those persons who became beneficiaries of the system before the adoption of this law or before the deadlines established by this law. Persons of this circle will continue to receive income tax refunds in the prescribed manner.

iravaban.net