Monday, June 13 2016 14:16

ArmInfo. Dividends will be taxable in Armenia, the relevant provision is set in the new Tax Code, the discussion of which continued today in the National Assembly of Armenia.

According to the Deputy Chairman of Armenia's State Revenue Committee Vakhtang Mirumyan during the recent 25 years dividends have not been taxed however this did not influenced on the process of attracting investments. Mirumyan is assured that investments depend on other factors rather than on taxation of dividends. Making dividends taxable will allow preventing a lot of abuses, for instance presenting salaries as dividends in order to avoid paying taxes. Besides, the question remains open why one types of physical entity's incomes should be taxed and the other ones not.

Former Prime Minister, lawmaker from oppositionist Armenian National Congress Faction Hrant Bagratyan disagreed with the government's proposal and pointed at increase of taxes in the new Tax Code.  He noted that if the Tax Code were approved last year it would ensure additional 40 bln AMD of tax revenues. According to him the Code envisages taxation of shares and dividends, the excise tax on petroleum and cigarettes was increased, monthly tax on income amounted to 5000 AMD is introduced for notary officers and private entrepreneurs. The lawmaker pointed at the fact that taxation of dividends is a double taxation of income, which is inadmissible.