Soldiers Exempt from Vehicle Property Tax: Cases and Limits

The Tax Code provides exemptions from vehicle property tax for soldiers and families of fallen soldiers. These exemptions are already in effect, but the conditions vary depending on the type of service, and there is one limitation that often causes families to lose their benefits without knowing.

According to Iravaban.net, these benefits are established by Article 245 of the RA Tax Code.

Conscripts

According to the law, individuals serving in mandatory military service are exempt from vehicle property tax for vehicles they own during their service. Note the phrasing here: there are no quantitative or power limitations. All vehicles owned by the serviceman are exempt.

This exemption also applies to servicemen from allied countries serving under international treaties.

Contractual Servicemen

The situation is different here. After completing mandatory service, those who enter post-graduate contractual military service, as well as those who continue to serve after the contract period ends, are exempt from property tax only for one vehicle with a power output not exceeding 150 horsepower. If a serviceman has more than one vehicle, the exemption applies to the vehicle specified in the taxpayer's application. Information on the number of owned vehicles is based on the certificate from the body managing movable property cadastre, and the registration body’s certificates indicate that no exemption has been applied to other vehicles.

Families of Fallen Soldiers

According to the law, families of those who were killed in combat operations or recognized as missing, missing without a trace, or deceased while performing their duties are exempt from property tax for the vehicle owned by those individuals. This exemption is valid until one of their children turns eighteen, or if the individual was unmarried or had no children, until the family member’s ownership rights cease.

Renting Voids the Exemption

This is the point where the exemption often disappears. The law stipulates that the exemption for conscripted soldiers does not apply if the vehicle considered a taxable object has been rented or given to a trust management during service. In the case of contractual soldiers, the right to exemption ceases when the serviceman is released from service.

Important Month Rules

The exemption applies from the first month when the right to it arose, while if the exemption ends, the tax is calculated starting from the first day of the month following the cessation.

Practical Steps

The tax is calculated by the relevant authorities, and the notification is issued before November 1. Moreover, not receiving a notification does not exempt one from payment. Information about obligations can be obtained from the authority within three working days upon application. The necessary data for recalculating the tax is provided within the same timeframe, while inquiries about the taxation base are directed to the body managing movable property cadastre.

The payment deadline is until December 1 of the tax year, and the list of documents confirming the right to benefit and the procedure for submission are established by the Government.

“In summary, Article 245 of the RA Tax Code stipulates that conscripted soldiers are exempt from property tax for their vehicles during service without any quantitative limitation, those in post-graduate contractual service for one vehicle not exceeding 150 horsepower, and families of fallen soldiers until one child turns eighteen, noting that the exemption does not apply if the vehicle is given for rent or trust management, and ceases upon release from service,” informs Iravaban.net.