Application for a real estate capital gains tax exemption on the sale of a property right subject to income tax (7016, 7017, 7017a, 7017b, 7501, 7502, 7503, 5340)

Who must apply

Anyone selling a real estate right or carrying out a transaction in a real estate association, the profit of which is subject to assessment in accordance with Chapter 1, Part B of the Income Tax Ordinance and meets the conditions specified in the Income Tax Ordinance 8/2021.

What to attach

The relevant forms must be attached to the application according to the relevant application course.

How to apply

The application must be submitted to the coordinator of the assessor's unit where the contractor's file is processed.

Possible courses of action

The possible courses of action for this application, subject to the conditions detailed in the Income Tax Enforcement Ordinance No. 8/2021 - Types of Approvals, Guarantees and Freezes of Appraisal Tax Debt by granting approval pursuant to Article 50 of the Real Estate Tax Law, are as follows:

1. Application for a general approval for a given tax year - a general approval for the tax year allows the company to receive an approval under Article 50 for all sales of residential flats and real estate constituting the commercial stock during the tax year that is the subject of the application.
   
   The application can be filed through Form 7016 – Application for an approval under Article 50 of the Property Taxation Law – General approval
    
2. Application for a one-year project approval - a one-year project approval allows a taxpayer who is a company (including a family company) or an individual to obtain an approval under
   section 50 for all sales (except land) in a specific project during the tax year for which the application is filed.
   
   The application can be filed through Form 7017b – Application for an approval under Article 50 of the Property Taxation Law – approval for a one-year project
    
3. Application for an approval for the full time the project exists - the approval for the full time the project exists allows a taxpayer who is a company (including a family business or an individual) to obtain an approval under Article 50 for all sales (except for the land) in a specific project, during the whole period of construction of the project mentioned in the application.
   
   The application can be filed through Form 7017 – Application for an approval under Article 50 of the Property Taxation Law – approval for a project for the full time the project exists
    
4. Application for approval of a project with an accompanying bank - Approval of a project with an accompanying bank allows a taxpayer who is a company (including a family company) or an individual to obtain an approval under section 50 for all sales in a specific project, as detailed in the executive order.
   
   The application can be filed through Form 7017a – Application for an approval under Article 50 of the Property Taxation Law – approval for a project with an accompanying bank
   
   Please note! When submitting form 7017a, it is mandatory to provide the following forms:
   • Form 7501 – Written irrevocable instructionso  
   • Form 7502 - confirmation from the accompanying company on receiving the irrevocable instruction letter
      
5. Application for an individual approval - a taxpayer who has not received a general approval and/or an approval for various types of projects, will submit an application to the tax assessor requesting an individual approval under section 50 for each sale of a particular property right, using form number 5340.

The application can be filed through Form 5340 – Application for an individual approval under Article 50 of the Property Taxation Law