Tax rates on vacant homes are rising

Tax rates on vacant homes are rising
  • 2020-07-07
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Deputy Chairman of the Economic Commission of the Majles: Draft amendment to Article 54 of the Law on Direct Taxes, one of the features of the plan is to increase the tax rate on vacant houses, so that the houses are vacant by the owners to the market. Be injected.

Referring to the need to organize the housing market, Seyed Ehsan Khandozi said: "One of the serious gaps in the field of housing policy is the lack of a real estate database in the country, despite the fact that the legislature has five years." The Ministry of Roads and Urban Development has been tasked with setting up a real estate and housing system, but data on about two-thirds of the country's households has not yet been recorded.

The representative of the people of Tehran, Rey, Shemiranat, Islamshahr and Pardis in the Islamic Consultative Assembly continued: In a situation where the housing market is in crisis, the policymaker has the power to punish mercantile actions in the housing market or to help families affected by rising housing rents. They have no problem.

He told Mellat House: "The important obstacle to the non-operation of the real estate and housing system is that the country's executive bodies do not cooperate with the Ministry of Roads and Urban Development in sharing their data in the real estate and housing system." The draft amendment to Article 54 of the Direct Taxes Law has been drafted by a number of deputies, so that after the approval and implementation of the plan, a sufficient incentive system to complete the real estate and accommodation system within three months after the law enters into force. Be provided.

Khandouzi added: "Based on the housing market data, the policymaker will be able to take the necessary measures in the field of housing incentive policies or controlling speculation in the market, which will increase the supply of housing and reduce prices in the coming months."

He continued: "The core of the plan is that people who do not provide their property and rental information to the system, from the point of view of the legislature, are considered the owners of vacant houses and at the time of transfer, the tax on vacant houses for codes Mail will be applied to those residential units.

 Khandozi said: "There are good experiences in the international arena regarding the use of depositing in the completion of information systems, which we hope will improve the housing market in the coming months by using it and effectively implementing the law and effectively monitoring the 11th parliament." 

Khandouzi continued: "One of the features of the plan to amend Article 54 of the Direct Taxes Law is to increase the tax rate on vacant houses so that the vacant houses can be injected into the market by the owners."

It is worth mentioning that Article 54 of the Law on Direct Taxes states; Residential units located in cities with a population of more than one hundred thousand people, which are identified as "vacant units" by the National Real Estate and Housing System (subject to Note 7 of Article One Hundred and Sixty-Nine) of this law, are subject to tax from the second year onwards. The equivalent of rental tax will be as follows:


Second year - equivalent to one second of the relevant tax
Third year - equivalent to the relevant tax
Fourth year and beyond - equal to one and a half times the relevant tax.

* Tasnim