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LEGISLATIVE AMENDMENTS IN REAL ESTATE SPHERE INCOMPLETE - SPHERE EXPERT
tert.am
24.01.13
The legislative amendment on taxing real estate companies are
incomplete and create serious difficulties for the companies operating
in the sphere, making them work either in shadow or take the path of
emigration, director of Real Estate Market Artyom Pribilski said.
He stressed that the people who adopted the law have not conducted
in-depth discussions, have not made studies.
"I do not know who is the author of the amendments, we have not find
it out yet, but in any case this initiative was a serious blow to the
real estate companies. Many are confused and do not know what to do.
Unfortunately, this law entered into force from January 1, 2013 and
that is why we are already dismissing people," Pribilski told Tert.am.
The companies operating in the sphere were previously taxed by the
Law "On Income Tax" and paid 15,000-20,000 drams monthly for each
employee. Now they are to be taxed in accordance with the law on
"License Fees" and pay 60,000 drams tax for each employee which
creates difficulties for employers.
"The young people wanted to conduct a protest action, we are urging
them not to. People are either going to shadows or emigrate or monopoly
will dominate in the sphere," Pribilski said.
The complaint over the change in the law united the companies operating
in the sphere. They have prepared a joint letter addressed to the
Armenian president urging him to review the law.
Speaking to Tert.am, director of Cascade Realty company Vardan Avagyan
said the law is very dangerous for the real estate market.
"The agencies that have up to 20 employees should pay such a big sum.
The law does not say whether this 60,000 is paid for a real estate
agent, lawyer, driver," Avagyan said.
He stressed that the market has not recovered after the 2008 financial
crisis with the prices having gone down, number of deals reduced and
people not being able to earn for their lives.
Few companies have applied to the government to be withdrawn from the
list of those being taxed by that law and be included in the list of
companies taxed by the law " On Turnover."
The amendment, though, seems not to bother the smaller companies. For
instance, director of Prestige Realty company Gevorg Aloyan said many
changes have been implemented in the tax field and the real estate
sphere has been eased of taxes.
"If there is a law that a company should pay 60,000 drams for an
employee, let them pay. It will make them keep good employees,"
Aloyan said.
tert.am
24.01.13
The legislative amendment on taxing real estate companies are
incomplete and create serious difficulties for the companies operating
in the sphere, making them work either in shadow or take the path of
emigration, director of Real Estate Market Artyom Pribilski said.
He stressed that the people who adopted the law have not conducted
in-depth discussions, have not made studies.
"I do not know who is the author of the amendments, we have not find
it out yet, but in any case this initiative was a serious blow to the
real estate companies. Many are confused and do not know what to do.
Unfortunately, this law entered into force from January 1, 2013 and
that is why we are already dismissing people," Pribilski told Tert.am.
The companies operating in the sphere were previously taxed by the
Law "On Income Tax" and paid 15,000-20,000 drams monthly for each
employee. Now they are to be taxed in accordance with the law on
"License Fees" and pay 60,000 drams tax for each employee which
creates difficulties for employers.
"The young people wanted to conduct a protest action, we are urging
them not to. People are either going to shadows or emigrate or monopoly
will dominate in the sphere," Pribilski said.
The complaint over the change in the law united the companies operating
in the sphere. They have prepared a joint letter addressed to the
Armenian president urging him to review the law.
Speaking to Tert.am, director of Cascade Realty company Vardan Avagyan
said the law is very dangerous for the real estate market.
"The agencies that have up to 20 employees should pay such a big sum.
The law does not say whether this 60,000 is paid for a real estate
agent, lawyer, driver," Avagyan said.
He stressed that the market has not recovered after the 2008 financial
crisis with the prices having gone down, number of deals reduced and
people not being able to earn for their lives.
Few companies have applied to the government to be withdrawn from the
list of those being taxed by that law and be included in the list of
companies taxed by the law " On Turnover."
The amendment, though, seems not to bother the smaller companies. For
instance, director of Prestige Realty company Gevorg Aloyan said many
changes have been implemented in the tax field and the real estate
sphere has been eased of taxes.
"If there is a law that a company should pay 60,000 drams for an
employee, let them pay. It will make them keep good employees,"
Aloyan said.