On Monday 28 February, the Ministry of Economy and Finance confirmed that the valuation system for the controversial property tax will be implemented by the end of March.
Taxpayers will have to register under the valuation system before the 30 September. But the legislation is still not clear on who is subject to the tax. The definition of taxpayer includes owners, occupiers and financial beneficiaries. How can a lessee avoid being liable for a tax the lessor has registered them for?
The law also causes problems for prospective purchasers of immoveable property who may find themselves liable for a year’s worth of tax on a property that they have only owned for a month. What systems are in place to prevent double taxation upon transfers of title?
As is usually the case there should be more clarity once the new tax starts to be implemented by the tax office.