ArmInfo. The Yerevan Municipality wants to provide tax benefits and write off fines to developers of apartment buildings that have not received final acts of acceptance of the work performed. The corresponding draft law was presented during the meeting of the Council of Elders on September 9 by the acting head of the Department of Accounting and Collection of Income of the Yerevan Municipality David Hakobyan.
"It is proposed to revise the procedure for calculating the tax for buildings that are under construction and have not received final acts," he noted.
In particular, it is proposed to apply a 25% benefit to the beneficiaries of the project on the calculated and unpaid property tax for the period from 2023-2025 and to write off fines for the same period.
After the application of the planned preferences, developers of apartment buildings that have not received final acts may receive benefits for the rest of the property tax. In particular, as Hakobyan explained, in the case of real estate up to 50 sq.m. - the tax will be reduced by another 25%, and in the case of real estate of 50 sq.m. and more - by 50%. The envisaged concessions will not be applied if the builder was issued a final act before they were provided, or if the construction permit expired and was not extended in the prescribed manner.
"The development of such a bill is due to the need to solve the problems that have arisen in practice among numerous construction companies. According to the current legislation, from 2023, property tax is levied on construction programs also on objects under construction. This creates serious challenges for the implementation of investment construction programs, while new unforeseen financial burdens are added. As a result, many construction companies may find themselves on the verge of bankruptcy, thousands of families will not receive the promised apartments, which will entail difficult economic consequences, harm the investment environment, and the pace of implementation of new construction programs will decrease, which will have a negative impact on the business environment," noted the acting. Head of the Department of Accounting and Revenue Collection.
