Special Measures for Mortgage Tax Reduction Consideration of Extension of Residence Period Government Ruling Party October 31 4:52
As a general rule, you must move in within the year to receive the special measures that the mortgage tax reduction will be applied for three years longer than usual.
The ruling party is considering extending the move-in deadline for next year's tax reform.
The mortgage tax reduction is a system in which income tax is reduced according to the balance of the loan when you purchase or remodel a house.
The period for which the tax reduction is applied has been extended from the initial 10 years to 13 years as a special measure accompanying the increase in the consumption tax rate last fall.
The deadline for moving in to receive this special measure is the end of December this year, and the deadline is the end of December next year only if the move-in is delayed due to the influence of the new coronavirus.
Housing-related industry groups have requested that this be postponed at least until the end of December next year as an economic measure.
Industry groups have also requested that conditions be relaxed so that mortgage tax breaks apply to narrower properties.
Based on these requests, the ruling party is considering extending the period of residence to receive special measures in preparation for the tax reform next year.
However, there is an opinion within the government that high-income earners should be excluded from the tax reduction, so we will discuss it carefully.