Armenian SRC presents changes to income tax refund for mortgage repayment

YEREVAN, 26 December. /ARKA/. The Armenian State Revenue Committee (SRC) has reminded today about a set of changes in the procedure of income tax refund on mortgage interest repayment, which will come into force from 1 January 2025.  

It noted that the quarterly amount of income tax refunded  will not exceed 750 thousand drams (now – 1.5 million drams) for loan agreements concluded after 1 January 2025.  

The income tax refund system will also be phased out by regions.  

1)  IN Yerevan – for mortgage loans obtained after 1 January 2025 (if the property is located in the administrative territory of the capital).

2) In Aragatsotn, Ararat, Armavir and Kotayk regions – for mortgage loans received after 1 January 2027 (if the property is located in the administrative territories of these regions).

3) In other regions – for mortgage loans obtained after 1 January 2029 (if the property is located in the administrative territories of Shirak, Lori, Tavush, Gegharkunik, Vayots Dzor and Syunik regions).

Exceptions are envisaged, namely:

1) The system of income tax refund will continue to operate even after the specified deadlines for real estate located or under construction in border settlements.

2) These changes are aimed at revising the scope of the ication of the system of income tax refund on interest paid on mortgage loans, taking into account regional peculiarities and socio-economic conditions.  

About the programme  

Since 2015, Armenia has been operating a programme for repayment of mortgage interest (in new buildings) at the expense of income tax refund paid to the state budget. There is a limitation on the price of real estate in the amount of AMD 55 million, also on the tax refund – no more than AMD 1.5 million for 3 months. ($1 – 396.18 drams).

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