Cadastre Committee of Armenia proposes its own formula for getting  out of "shadow" of housing rental market

ArmInfo.The State Revenue Committee (SRC) of Armenia proposes amendments to the Tax Code of the Republic of Armenia, which will allow attracting apartments,  residential buildings and land plots that are idle to the rental  market, reduce the amount of rent, and also oblige to officially  record the fact of leasing for the purpose of further paying taxes.  The initiative is presented for public discussion on a single portal  of legal acts.

As stated in the clarification of the document, there are currently  two or more apartments and/or residential buildings and/or plots of  land per citizen that are idle, particularly unrented, which leads to  a decrease in supply in the rental market, which in turn leads to to  the increase of rents in areas in demand for housing.

In addition, the legislator suspects that currently there are many  apartments, residential buildings and plots of land, which are leased  (provided) without signing a lease agreement and are not properly  registered in the authorized body for managing the real estate  cadastre. This leads to the formation of an income tax shadow, and  landlords evade registration of rights and payment of the state fee  arising from contracts.  In view of the foregoing, the Cadastre  Committee proposes its own formula for calculating real estate tax  for a taxpayer in whose name 2 or more taxable activities and assets  are registered.  The amendments will come into force on January 1,  2024.