Reduced betterment tax rate on the sale of land that is determined for construction of at least 8 apartments is due to expire at the end of 2018
As part of the efforts to increase the supply of apartments in the market, a temporary order for years 2016-2018 stated that in case that an individual (including a family company or a partnership) is selling land that is determined for construction of at least 8 apartments and subject to other conditions, a reduced betterment tax rate of 25% shall apply (instead of the marginal tax rate) for the period from the date of purchase and until November 7, 2001.
This temporary order is due to expire on December 31, 2018, and it is advisable to prepare accordingly.
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