Individuals were entitled to deduct up to 31 December 2015, to determine their net taxable income, interest on loans for the acquisition or construction of social housing.
That, for the purposes of the legislation on interventions in the housing promotion fund for employees, either individual or collective dwellings with covered area does not exceed 100 m2 and the cost does not exceed 67.500D.
From 1 January 2016, Article 26 of the Supplementary Finance Act 2015 extended the above deduction for interest paid on loans for the acquisition or construction of other categories of premises used housing. The deduction also covers the profit margin paid under contracts of sale "Murabaha".
Interests affected by the deduction
The deduction takes place within the limits of interest charges on or amortization tables and counted in accordance with the limits prescribed by the regulations on the granting of mortgages for loans from more than one person or an organization (banks, social funds, employers ...), and, subject to the conditions and limitations of the aforementioned credits.
The deductible amount of income a year, in any case, equal to the interest or profit margin, related to that year.
Terms of deduction
The interest deduction or the profit margin applicable:
when determining the tax base of the deduction at source payable in respect of income tax for employees and pensioners, and
when determining the total net income taxable for individuals performing other types of income.
Evidence of deduction
The deduction is subject to the submission of the following:
An affidavit of non-possession of a local alternative for residential use;
The table or tables of depreciation or credits;
A copy of the purchase contract or evidence supporting the construction costs based on which the loan was granted;
A bank certificate of residence for employees and pensioners;
A certificate issued by the person or the lender proving the actual payment of the amounts subject to the deduction for others.
People who have residential loans have interest in presenting their cases in their jurisdictions.