2024-04-15 01:31:57
The State Revenue Committee has issued a notification: what should be known when renting real estate? It is stated in it:
“What should be done first?”
When renting real estate, it is necessary to sign a lease agreement, which must be state registered. In the event that he has not received state registration, then the individual who leased the real estate must visit any taxpayer service department and submit a statement on the lease in paper form. Declaration form here։
When should the statement be submitted?
A natural person who is not an individual entrepreneur who leased real estate must submit the declaration to the tax authority within 5 days following the date of the lease, and in case of termination of income, within 5 days following the termination date.
How to fill out the statement?
The statement must be submitted to any tax payer service department in paper form, filling in the following information:
name, surname, patronymic of the lessor natural person,
AVC (which must be obtained in advance),
passport data,
public service number (PSN) or reference number about not having a PSN,
the date of submission of the statement,
real estate data,
lease terms,
amount of rental income.
How to get a Taxpayer Registration Number (TRN)
In order to submit a declaration and pay income tax, it is necessary to obtain a taxpayer registration number (TAN) from the tax authority and sign an agreement to submit reports electronically by visiting any taxpayer service department or by authorizing another person to act on his behalf in the tax authority, as well as online: Electronic reporting system file-online.taxservice.am through
What is the income tax rate?
In case of leasing real estate to a natural person, the lessor natural person is obliged to pay income tax from the rental payment received, which is calculated at the rate of 10% of the income received from the rental of the property. If the sum of rental payments received during the tax year exceeds 60 million drams, additional income tax is calculated for the excess part at the rate of 10%.
When and how to pay income tax?
Income tax from rental payments must be calculated independently and exclusively electronically: file-online.taxservice.am through the system, submit the annual calculation of income tax and social contribution to the tax authority.
Income tax must be calculated and paid by May 1 of the tax year following the accounting year inclusive.
What is the amount of the fine?
According to the Law HO-340-N “On Making Additions and Amendments to the Tax Code of the Republic of Armenia” adopted on October 25, 2023, from December 1, 2023, in case of non-compliance with the requirements set forth in the Code related to the rental of real estate, a fine has been established for real estate according to the law assessed according to the established procedure, in the amount of 5 percent of the cadastral value approximated to the market value, but not more than 500 thousand drams. In case of repeating the violation within a year, a fine of 10% is charged, but not more than one million drams.
In what cases will not be fined?
In the event that the rights arising from the real estate lease transaction have received state registration,
in the event that the rights arising from the lease transaction have not received state registration, but a declaration has been submitted to the tax authority within the period specified by the Code regarding the right to receive income related to real estate or the taxpayer has calculated the income tax from the income from the lease of real estate in accordance with the law.
Real estate rental information sheet here»։