ArmInfo. 92% of visitors to the single portal of legal acts of e- draft.am, where from January 23 to February 7 the draft amendments "On Amendments and Additions to the RA Tax Code" were posted, spoke against the document submitted by the Ministry of Finance of Armenia.
Thus, the respondents left more negative comments regarding the norm of the document that puts a taboo on the implementation of activities in the field of tax turnover regulation by representatives of specialized activities, in particular, accountants, auditors, lawyers and consultants.
In the second place of this "rating" are those who oppose the introduction of a flat income tax scale. As they note, the stated goal - to remove revenues from the shadows does not correspond to the essence of the document, because as a result of the approval of the project, this measure will have the opposite effect.
The draft amendment to the current Tax Code from 2016 was posted on e-draft.am in November 2018. At the same time, as later stated in the Ministry of Finance of Armenia - the initiator of tax changes, responding to the concerns of the expert community, the document was finalized and resubmitted to the public on January 23.
In the new version, the authors of the document decided to raise the threshold for microentrepreneurship to 24 million drams from January 1, 2020, from 20 million drams indicated in the previous text. However, restrictions were introduced, which were not in the first version. In particular, microenterprises will not be considered as economic entities that carry out specialized activities, in particular, accounting, legal profession, consulting. Microbusiness will be exempt from all types of taxes other than income tax, which will be 5 thousand drams.
At the same time, restrictions for them will be established also within the framework of the turnover tax. Thus, Armenia will increase the non-taxable VAT threshold from turnover from the current 58.35 million ($ 120 thousand) to 115 million drams ($ 235 thousand), but exclude from the list of potential beneficiaries tax payers of representatives of specialized activities, in particular, accountants, auditors, lawyers and consultants.
From September 1, 2019, Armenia plans to switch to a flat income taxation system, which, regardless of the amount of wages, will be set at 23%. Moreover, until 2023, the rate will gradually decrease to 20% - from January 1, 2020 - to 22%, from 2021 - to come to 21%, in 2022 - to 20.5%, and from 2023 - to 20%. In parallel, the government provides for a gradual return to the previous conditions of the mandatory pension system before 2023. Thus, from January 2020, the monthly mandatory payments on them by the working citizen will be 3.5% (from 6.5% with state co-financing) instead of 2.5% from the size of the salary and 7.5% from July 1, 2018 state treasures. Already in 2021, working citizens will monthly give 4.5% of their salary to the All-Russia Regional Public Service, and from 2022 - all 5%. From 2020 to 2022 The government also offers equal rates of income tax and dividend tax for citizens of Armenia and foreigners, setting them also at the level of 23% (from 20% to 18% income tax and from 10% to 5% dividend tax - Ed.). The Ministry of Finance also proposes to fix that the pensions of residents of individuals received from outside are not subject to taxation in Armenia.
As Deputy Minister of Finance of Armenia Arman Poghosyan said in an interview with ArmInfo a month earlier, the finance ministry is inclined to think that the project posted on the e-draft.am portal on January 23 is final. "Back in November 2018, when the project was presented in its previous form, it passed a long way of public and departmental discussions, but the process cannot be endless. Otherwise, the problems will remain unresolved. In our opinion, this is the final stage. The document will stay on the portal until February 7, after which it will be summarized and submitted to the government, " Poghosyan said.