Tax incentives for participants in home acquisition programs

Citizens of Pridnestrovie who purchase housing using mortgage loans will not pay income tax on the amount of interest paid by the employer organization. The employer organization is exempted from paying a single social tax on the amount of interest that is paid for its employees on these loans at the same time. The relevant additions to the laws “On personal income tax” and “On the Unified Social Tax and Compulsory Insurance Contribution” were adopted by the Supreme Council in the final reading.

The Head of the relevant committee explained that any payments in favor of the employee are taxed under the current legislation. If the employer helps to pay interest on a housing loan for his employee, then these payments are considered material benefits and will be taxed.

The law-in-draft stipulates that the accepted tax benefits are provided once in relation to one property purchased by a citizen. These benefits are not provided when acquiring other real estate objects in the future.