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.
