Friday, February 16 2024 16:48
Alina Hovhannisyan

Expert: SRC should have taxed labor migrants only after large-scale  information campaign for them, which was not done

Expert: SRC should have taxed labor migrants only after large-scale  information campaign for them, which was not done

ArmInfo. The decision of the State Revenue Committee of Armenia on taxation of labor migrants  and penalties in case of non-payment is extremely unfair. Tatevik Bezhanyan, Advocacy Officer at Armenian Caritas Migration and Development Project , stated during a press conference on February 16.  

We are talking about the decision of the State Revenue Committee  of Armenia to tax labor migrants working outside of Armenia, in  particular in Russia (where their lion's share are), in the amount of  the difference in the income tax paid according to the legislation of  Armenia and the Russian Federation (in the amount of 8%). In  addition, the Committee imposed penalties of 0.4% for each day of  non-payment. 

According to Tatevik Bezhanyan, to comply with the new requirements  from the State Revenue Committee, labor migrants will also need the  services of an accountant, which they will also need to pay for.   These are hard-to-get amounts for labor migrants, given that the bulk  of the money they earn goes to cover the household expenses of their  families. The ruble depreciation factor should also be taken into  account, due to which the incomes of Armenian workers have decreased  by 2 times. The SRC's decision is fraught with serious consequences  for our citizens who are unable to fulfill their tax obligations to  the state. For example, in case of non-payment, their property may be  confiscated, etc.

In this regard, Bezhanyan considers it appropriate to introduce such  innovations starting next year, but only after the State Revenue  Committee has carried out a large-scale information campaign to labor  migrants about the additional tax obligations that they may have upon  returning to Armenia.

"Everyone who received a letter from the State Revenue Committee  about tax obligations and fines had concluded legal employment  contracts, the employer paid taxes for them in the Russian  Federation. And as a result, it turned out that those who worked  illegally, did not have an employment contract, did not pay taxes to  the state treasury of the Russian Federation, were in a better  position," the expert emphasized.  Referring to the RA law, Bezhanyan  said that labor migrants will not be burdened with tax obligations if  they stay outside Armenia working for 183 days or more.

According to data for 2022, the number of labor migrants from Armenia  with an employment or civil contract in the Russian Federation  exceeded 130 thousand people.

As Hetq online newspaper ("Trace") reports , thousands of citizens  who went to Russia to work upon returning to Armenia received letters  from the State Revenue Committee stating that they had tax debts in  the amount of 100 thousand to 1 million drams.

"Based on the abovementioned, it is recommended to submit an annual  calculation of income tax and social contributions for 2022 to the  tax authority as soon as possible and pay the resulting tax  obligations," says a message sent to a citizen from the State Revenue  Committee, in which special emphasis is placed on the agreement  signed between the governments Armenia and Russia have an agreement  on the avoidance of double taxation. In other words, according to the  SRC, this process is not double taxation.  The SRC has already  notified 1,005 individuals, from whom it is demanding a total of 187  million drams.  In 2020, 122 individuals were notified, from whom the  State Revenue Committee is demanding 21.3 million drams. 96  individuals were notified of income received in 2021, from whom 13.2  million drams are required to be withdrawn. Based on income received  in 2022, 153.3 million drams are required from 787 individuals.  It  is noteworthy that the citizens of Armenia were not informed in time  about the adopted protocol, which must now be implemented by the  State Revenue Committee.

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