How to get a tax deduction

As in Russia, in Armenia it is possible to return the tax paid to the state budget on the income of individuals. But there are significant differences and important nuances, which we will discuss in this article.

In Armenia, citizens can receive a tax deduction for the purchase of residential real estate. However, there are limitations:

• the deduction is directed only to the repayment of interest on the mortgage;
• the value of real estate is not more than 55 million drams;
• applies only to residential premises in the primary market;
• does not apply to buildings under construction in the 1st and 2nd central zones of the capital; (from July 1, 2023, this will also affect the 3rd zone of Yerevan);
• no more than 1.5 million drams can be returned per quarter;
• You can use the program only once.

To send funds to pay off interest on a mortgage, the borrower must apply to the State Revenue Committee:

• personally apply to the office of the Committee;
• apply on the official website through the Information portal of personal accounts (Information portal of personal accounts (taxservice.am));
• through a mortgage bank (for example, VTB Bank provides such an opportunity).

Through the department of the KGD:

• make sure that the employer has sent data on the tax paid for the quarter to the tax office;
• get a certificate from the bank on the amount of interest paid on a mortgage loan for the quarter;
• apply to the department with a statement;

Through informational portal:

• issue an electronic signature and receive a personal login and password in the Committee's service department;
• register on the portal using an electronic signature;
• the main part of the application will already be completed. You must enter your contact information and bank account details yourself to transfer the deduction.

Through a mortgage bank on the example of VTB Bank (Armenia):

To do this, the borrower agrees to the bank to automatically transfer the necessary information to the State Revenue Committee on a quarterly basis:

• by filling out a short application on the official website of the bank in the "Online Applications" section: you need to go to the "Ordering a certificate" subsection, then in the "Type of certificate" window, select the option "Consent to transfer data on % mortgages to ACRA";
• for Mobile/Internet banking applications: you need to go to the “Bank Feedback” subsection in the “Bank Contacts” section, then select the “Consent for transferring information about % mortgage to ACRA” option and specify the number of the mortgage agreement in the consent.