The tax provisions of the Housing Production Leap Law were announced

According to Tejarat News, quoting the Tax Affairs Organization, Davood Manzoor, the head of the country’s tax affairs organization, announced the tax provisions of the Housing Production Leap Law.

The communiqué states:

The tax rulings of the Housing Production Leap Law approved by the Islamic Consultative Assembly on 05/17/1400 will be sent as follows for implementation.

Article 3: In order to create synergy, strengthen support capacity and optimal allocation of financial resources in the housing sector, the National Housing Fund shall be established with the function of aggregation and allocation of financial resources subject to this law, up to three months after the entry into force of this law.

The resources of this fund are from the sources obtained from the assignment of the lands subject to this law and the collected sources related to 99-year lease, taxes related to land, housing, real estate and buildings, resources provided for the housing sector in the annual budget laws, resources from return The principal and subsidiary of Mehr Housing credit lines, the repayment installments of the First Housing Savings Fund each year, charitable contributions and other resources provided in the fund’s articles of association are provided and used by the fund, including interest on subsidies, discounts on issuance and renewal costs. Building permit, building completion certificate, supply and transfer costs, infrastructure and participation in the creation of facilities, superstructure services and non-profit uses (educational, religious, medical, green space, culture, sports and urban equipment) in urban development created in accordance with the pattern Approved by the Supreme Housing Council for the design of housing projects subject to this law. The property and assets of this fund belong to the Government of the Islamic Republic of Iran. The fund is located in the Ministry of Roads and Urban Development and has no other branch in Tehran or any of the cities. The members of the fund include the Board of Trustees and the Board of Directors.

Note 8 Article 3: In 1400, in excess of the amounts determined by the tax bases related to land, housing, real estate and construction in the budget of 1400 of the whole country and from 1401, all amounts received from this article will be allocated to the fund.

Article 4 – Banks and non-bank credit institutions are obliged to allocate at least twenty percent (20%) of the payment facilities of the banking system to the housing sector each year at the interest rate approved by the Monetary and Credit Council, so that in the first year of law implementation of at least three million And six hundred thousand billion (3,600,000,000,000,000,000) Rials of facilities for the units subject to this law should not be less and for the coming years, the minimum facilities of the mentioned facilities will increase by increasing the above-mentioned percentage in accordance with the annual inflation rate.

Note 1 Article 4: Specialized banks at the discretion of the Central Bank, with the exception of the Housing Bank, are excluded from the provisions of this article.

Note 2: Article 4: The above facilities will be paid based on the annual housing needs in the plans and programs announced by the Ministry of Roads and Urban Development. In case of combining the resources of Bank Amel with the resources of National Housing Fund, the interest rate of the facility is calculated based on the ratio of the share of resources of National Housing Fund with Bank Amel and based on the interest rate approved by the Monetary and Credit Council.

Note 3 Article 4- Facilities related to the construction of units of this law will be converted into installment sales after the participation period and its obligations will be transferred to the buyer. The total period of participation and installment sale is twenty years. If the increase in the length of the construction period is due to the negligence of the builder, the profit of the participation period of the increased period is the responsibility of the builder with the approval of the Ministry of Roads and Urban Development.

Note 4 Article 4: Banks and credit institutions are allowed to issue mortgage bonds subject to Article (14) of the Law on Organizing and Supporting the Production and Supply of Housing within the framework of the regulations of the Central Bank and the Stock Exchange and Securities Organization in case of payment of the facilities subject to this Article.

Note 5 Article 4: In case of non-observance of the subject of this article, in the form of annual budget, a tax equal to twenty percent (20%) of the unfulfilled obligation is required to be collected from banks and credit institutions and deposited in the Treasury of the whole country. N. This amount is considered 100% (100%) allocated and deposited in the account of the National Housing Fund.

Note 1: Article 5: Transfer of public sector lands and non-governmental public institutions to the bodies covered by Article (29) of the Law on the Sixth Five-Year Economic, Social and Cultural Development Plan of the Islamic Republic of Iran, approved on 12/14/1695, transfer of residential units from the fund to investment unit holders The final of these funds and the lease of real estate by investment companies is tax-free.

Article 10- All ministries, institutions and government agencies, as well as companies whose 100% (100%) capital and shares belong to the government, are obliged to transfer and deliver lands at their own disposal free of charge within the location of the subject of Article (6) of the law. Organize and support the production and supply of housing (with the exception of the lands of Note (2) of Article (9) of this law), within two months from the date of entry into force of this law at the request of the Ministry of Roads and Urban Development. Real estate registries are obliged to separate and register the transfer of property in the real estate office and issue a title deed in the name of the government on behalf of the Ministry of Roads and Urban Development within one month after the announcement of the said ministry.

Article 17- The Tax Affairs Organization of the country is obliged to calculate the tax for preparation, landscaping, infrastructure and superstructure and construction of housing for all housing support programs equal to ten million (10,000,000) Rials per housing unit.