Construction and installation work for the construction of affordable housing and housing that is built for public funds, exempt from taxation. The new Tax Code contains a number of rules that would reduce the construction cost per square meter. This was announced by Vice Prime Minister Viktor Tikhonov, the League wrote.
According to him, the Tax Code provides for exemption from taxation on the supply to construction work on the construction of affordable housing and housing that is built for public funds.
"This rule will be a driving force in reducing the cost of construction per square meter. Yes, this rule applies only to affordable housing and housing that is built for public funds. But because the queue for housing is already years is far beyond the millions of our citizens , most of whom are unable, without help from the state to buy or build themselves a home, exemption from taxation of supply construction works will allow the state to help to a lot of waiting, "- said Viktor Tikhonov.
Vice Prime Minister also informed that the tax code among the list of income which are not included in the total monthly (annual) taxable income, determines the cost of housing, which is transmitted from the state or communal ownership in the property tax payer for free or discount in accordance with the law, as well as the amount of state support for the construction or acquisition of affordable housing that is provided by the taxpayer in accordance with the law.
In addition, says Viktor Tikhonov, the taxpayer will be entitled to include in the tax credit amount of expenditures for payment of construction costs (purchase) of affordable housing as defined by law, including the repayment of preferential mortgage loan provided for such purposes, and interest on him.