In which case can a citizen take advantage of the possibility of income tax refund? SRC
The State Revenue Committee informs citizens what they need to know about the mortgage loan income tax refund.
"1. In which case can a citizen take advantage of the possibility of income tax refund?
The income tax of individuals who purchase (acquire) an apartment or individual residential house with a mortgage loan or build an individual residential house is refunded in the following cases:
- if the apartment is purchased directly from the developer in a multi-apartment residential building built or under construction on the territory of the Republic of Armenia,
- if the apartment is purchased within the framework of the housing security program implemented by the state or community, from the state, community, directly from the developer who is an organization or an individual entrepreneur,
- if an individual residential house is purchased or built in the RA territory.
2. How is income tax refunded?
The income tax on the mortgage loan is returned from the income tax amounts calculated from the salary and equivalent payments of the employed individuals and paid to the state budget. Income tax is refunded in the amount of interest paid for servicing the mortgage loan at quarterly intervals. It is important to know that a natural person borrower who receives income from civil law contracts for the performance of works (providing services) cannot use the possibility of income tax refund.
3. What conditions are necessary to avail the income tax refund?
Income tax refund is made under the following conditions:
- After January 1, 2018, the borrower and co-borrower can use the possibility of income tax refund only for one mortgage loan contract.
- The contract value of the transaction to purchase an apartment or individual residential house with a mortgage loan should not exceed 55 million drams.
- The total amount of income tax to be refunded to the borrower of the mortgage loan and, if available, to the co-borrowers for each quarter should not exceed 1.5 million drams.
4. In what cases is the income tax not refunded?
Income tax is not refunded if the apartment or individual residential house is located, is being built or will be built in the following zones of the area assessment (location) of buildings defined by the Government's decision:
- Regarding mortgage loans received after July 1, 2022, in the first zone included in the administrative territory of Yerevan.
- Regarding mortgage loans received after January 1, 2023, if the real estate is located, is being built or will be built in the second zone included in the administrative area of Yerevan.
- Regarding mortgage loans received after July 1, 2023, if the real estate is located, is being built or will be built in the third zone included in the administrative area of Yerevan.
- With regard to mortgage loans received after January 1, 2025, if the real estate is located, is being built or will be built in the zones not mentioned in the above points, included in the administrative territory of Yerevan.
It is necessary to take into account that the restrictions due to zoning are not applied to apartments or individual residential houses built (under construction) on the basis of construction permits obtained by decisions adopted before January 1, 2022, as well as to income tax within the framework of mortgage loans received before the above-mentioned change. against subsequent refunds.
5. How to apply for a refund of income tax on the amount of interest paid on a mortgage loan for the first time
Citizens who bought an apartment with a mortgage loan submit applications for income tax refund exclusively electronically. However, first-time users of the program must submit the necessary documents to any SRC taxpayer service department by hand or by mail. It is necessary to submit an application for confirmation of the right to use the income tax refund, attaching the following documents and their photocopies:
- the borrower's identity document: the passport of an RA citizen or, if available, the identification card, or the document confirming the right to reside in the Republic of Armenia of a foreign citizen with the right of residence (status of residence) in the Republic of Armenia and a stateless person, or the convention travel document of a person with refugee status ,
- the borrower's public service number (PSS) or the reference number of the borrower's lack of it, the PSU (if available),
- the original mortgage loan agreement or a notarized copy of that agreement, the repayment schedule of the mortgage loan agreement and the state registration certificate of the ownership of the mortgaged property (or the right to purchase real estate from the building under construction or the right to develop the property) acquired within the framework of the mortgage agreement,
- a certificate issued by the developer stating that the apartment or individual residential house was purchased (brought) directly from the developer, or a permit for the construction of an individual residential house,
-a contract of sale of an apartment or an individual residential house or the right to purchase real estate from a building under construction or the original of the contract for acquiring the right to construct an apartment.
After approval of the application for the right to use the income tax refund, it is necessary to register in the "Individual Accounts Information Portal" and send the electronic application for the income tax refund through the same platform.
6. How to use the electronic platform?
To submit an application for income tax refund online, the borrower must register in the "Individual Accounts Information Portal" system with the following options:
Option 1:
- If the borrower has an electronic signature, it is necessary to enter the "Information portal of individual accounts", press the "Register" button and fill out the application for access to an individual account, then download the completed application, put an electronic signature, then download the signed application and register system. The borrower will receive a link to access the portal to the e-mail address. By clicking on the link, you need to fill in the PSC, username, password and register.
- If the borrower does not have an electronic signature, but wants to send the application in this way, he can receive it through the www.ekeng.am system. After activating the electronic signature, the sequence of steps should be performed in the above version.
Version 2
If the borrower does not have an electronic signature and does not want to get one:
- To register in the "Individual Accounts Information Portal", one can visit any tax payer service department and submit a registration application on the spot, providing a valid e-mail address and relevant documents (identity certificate and CSI).
- The same data and the scanned application can also be sent to the email address secretariat@petekamutner.am , to which the citizen will receive a link to access the "Information Portal of Individual Accounts". To complete the final registration, you need to fill in the PSC, username and password.
7. How to fill out the electronic application for income tax refund?
After registering in the "Information portal of individual accounts", it is necessary:
- enter the page created with your data and create a new application in the "Registry of Income Tax Refund Applications".
- In the electronic application, you must fill in the phone number, reporting period and valid bank account number, marking the field "Consent to checking the bank account", and the rest of the information is filled in automatically.
- If necessary, you can check the completed data, also edit the amount of income tax to be refunded, then click the "Submit to SRC button" and send the application.
It is necessary to remember that the borrower does not submit any other documents to the tax authority in addition to the electronically submitted application.
8. When does the borrower receive the mortgage interest income tax refund?
After sending the electronic application, the borrower receives the income tax amount within hours or maximum 3 working days. However, in order to receive the money, it is necessary that the employer has already submitted and paid the income tax calculation to the tax authority, and the financial organization has provided the data on the amount of interest paid on the mortgage loan. If any of these data are not even transferred to SRC, the system notifies about it. There is no deadline for submitting an income tax refund application."
