Friday, January 26 2024 17:00

ArmInfo.In 2023, AMD 51.9bln were returned to 38,911 beneficiaries of the income tax refund  program within the framework of mortgage lending, which exceeds the previous year's figures by 42%, and the number of beneficiaries by 33%.

According to the State Revenue Committee of the Republic of Armenia,  in 2022 the number of beneficiaries was 29,199, and the returned  amount was AMD 36.5bln.

During 2015-2023, AMD 141.1bln were returned from the state budget to  citizens who took advantage of the income tax refund program.

The program has been in effect since November 2014: citizens who  purchase housing using mortgage lending on the primary market  (apartments in new buildings or new private houses) receive an income  tax refund in the amount of interest on the mortgage. In 2017, the  financial authorities of Armenia stated that the legal norm was aimed  at creating stable and effective demand in the sector, as well as  solving social problems. As a result, the authorities began to  introduce various restrictions.

On July 1, 2022, a gradual abolition of the income tax refund system  on mortgage loans began in Yerevan.  The process will begin from the  capital center and will be completed by 2025.

The other day, the Armenian government proposed reducing the maximum  amount of income tax that the state returns to the "mortgagee" -  within one transaction, no more than 750 thousand, instead of the  current AMD 1.5mln (per quarter), for mortgage transactions from  January 1, 2025.

In addition, the Armenian authorities want to completely abolish  income tax refunds for mortgage loans from 2029. The cancellation  will be gradual. Thus, after January 1, 2027, income tax on mortgage  loans on the primary market is not refundable if the property is  located in the regions adjacent to the city of Yerevan - Aragatsotn,  Ararat, Armavir and Kotayk. From January 1, 2029, tax refunds will no  longer apply in other areas. Restrictions will not apply to border  settlements.