Wednesday, February 20 2019 11:45

ArmInfo.Those engaged in specialized activities, in particular, accountants, auditors, lawyers and consultants in Armenia, will be able to work in the field of  regulating turnover tax, but they cannot be considered micro-business  entities. The Deputy Minister of Finance of Armenia Arman Poghosyan  told ArmInfo correspondent about this.

Earlier, the Ministry of Finance initiated amendments to the Tax  Code, within which it is planned to raise the non-taxable VAT  threshold from the current 58.35 million ($ 120 thousand) to 115  million drams ($ 235 thousand), but excludes representatives of the  specialized activities from the list of potential beneficiaries. From  January 1, 2020, the Ministry of Finance of Armenia also proposes to  increase the preferential tax threshold for microbusiness to 24  million drams, however insists that those business entities that  provide services in the field of specialized activities can not be  considered microenterprises.

According to the Deputy Minister, the Ministry of Finance will  temporarily refrain from applying the prohibiting standard for  representatives of the above activities in the field  of turnover  tax. The finalized draft is likely to be submitted to the government  for consideration already on February 21 at the next meeting and  after passing through Parliament, it will be operational from the  beginning of next year.  Nevertheless, as the representative of the  Ministry of Finance pointed out, the legislative provision will have  retroactive effect - from January 1, 2019. "If, before the adoption  of the legislative act by the parliament, economic entities exceed  the current threshold, the non-taxable VAT in the amount of 58.35  million drams, even after its legislative increase to 115 million  drams, will not be able to return to the field of regulating turnover  tax and will continue be considered as VAT payers. For anyone who has  not exceeded the threshold of 58.35 million drams, since the approval  of the new norm, it will have retroactive effect, "explained  Pogosyan.  To note, 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. 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 regulating turnover tax  by representatives of specialized activities.  As a result, on  February 13, Armenian Prime Minister Nikol Pashinyan, referring to  the restrictions planned by the document, stated from the rostrum of  the parliament that at this stage the government decided to abandon  the controversial points of the draft amendments to the Tax Code. As  it turned out, the tax administration body, the State Revenue  Committee, does not have the appropriate software. "That is, we do  not have the levers to ensure the application of this norm," Nikol  Pashinyan said.