Short-term mortgage does not give a right for tax credit

People who received not long lasting loans for accommodation could not fully use the benefits of tax credit.

Put interests of credit on buying or building accommodation with tax credit for today could not all citizens of Ukraine. Such limitations are pledged in form of real estate and term for which credit is given (5 years and more). However, such demands which are fixed by legislation do not let to refer to the tax credit by loans having provided by other property or by guarantees of natural and legal persons and also, by credits till 5 years. Such situation is not best way affect on quantity of receiving in credit accommodations and thus on living conditions of citizens. For the purpose of elimination the above mentioned conditions was worked out a legislation № 3497.

Right of citizens for tax credit and grounds for its use regulate by the Law “About the tax from incomes of natural persons”. According to the document, tax credit is a sum of expenses which bear payer with reference of getting goods (jobs, services) on which it is allowed to decrease sum of his month ratable income. Where, in this case, it is about effective expenses which are confirmed by payer in writing. By law to the list of expenses which are allowed to include to the tax credit of business year belongs “a part of the sum of interests by mortgage credit”. It is allowed to include in tax credit interests only by those credits where the pledged is real estate.

Except this, according to the law the right of reference of the part of the interests to the tax credit is spread just only to the mortgage credits on the term from 5 years and more. Consequently, interest by mortgage credit calculated to the payment for sorter period could not comprise in the representative by state tax credit.

All this limitations narrow the content of norm and its positive influence on the solving accommodation problems of citizens. In this case the accent should be done “on specific trend of the credit but not on the view of its securing and not on the term of the credit.”

It is suggested to refer to the tax credit a part of the interests by all contracts of housing credit but not only mortgage.

For this reason, it is suggested to the projects on the legislative level formalize an opportunity the whole Ukrainians buying (building) accommodation in a credit (it does not depend on its way of providing) include part of interests to the tax credit. Except this deputy suggests excluding from working law the norm of the concrete term of loan which give right for use of tax credit.
Remarkable also that the formula of calculation of part of interests which could be covered by tax credit according to the legislation does not change. It will be equal product of sums of the interests, practically paid by taxpayer during the account tax period in account of its payment for special index number. The last is a number which was found by division of the minimal total area of accommodation which is equal 1000 sq. ft. on real total square of accommodation which is building (buying) taxpayer by means of housing credit.