income and profit taxes

National Assembly has passed in the second reading a bill on amending the laws on income and profit taxes

YEREVAN, May 7. / ARKA /. At an extraordinary session today Armenia’s  National Assembly has passed in the second and final reading a controversial bill on amending the laws on income and profit taxes that require thousands of Armenians working abroad to pay taxes at home. The amount of income tax the government will levy from migrant workers is 13 percent. The income tax rate for workers in Armenia is 24 percent. The controversial bill was backed by 68 lawmakers, 14 voted against it and another 17 abstained from voting.

According to Deputy Finance Minister Vakhtang Mirumyan, the government expects the revised law to give a boost to its tax revenue. He said the law will serve also an incentive for business owners to register Armenian citizens employed abroad in their home country. Mirumyan noted that the law will apply only to companies that have government-approved investment programs.

The bill was criticized by some opposition lawmakers, who argue that it will spur further out-emigration and contribute to the creation of monopolistic companies. On March 3 the Armenian parliament passed amendments to the law on income tax that has cut tenfold the size of profit tax (to 2%) for large domestic companies with annual exports worth at least 50 billion drams. To be eligible these companies must have government-approved export-boosting programs.  ($ 1 – 481.39 drams).

Arka News Agency