ArmInfo. On October 4, the Armenian National Assembly adopted the new draft Tax Code in the third and final reading.
Earlier on September 29, when presenting the document, Deputy Head of the State Revenue Committee Vakhtang Mirumyan said the document underwent essential changes following 7 hearings and more than 25 discussions. The provisions regulating the income tax have been changed as follows: the income tax for a salary of up to 150,000 drams is 23% versus previous 24.4%, from 150,000 up to 1 million drams - 28%, and 2 million drams and above - 36%. The novelties will certainly reduce the income tax of 89.8% or 550,000 employees receiving up to 250,000 drams salary. The tax will increase by 1.72% (versus previously suggested 4.3%) for the employees receiving more than 2 million drams.
Another amendment applies to exemption of VAT and profit tax. The annual turnover of up to 58.35 million drams (versus previously suggested 40 million drams) will be exempted from VAT. 54,000 economic entities in Armenia have up to 30 million drams annual turnover. The new bill leaves unchanged the amortization charges for buildings, including hotels. Dividends tax (5%) will be charged starting January 1 2018. If the dividends are investments in the development of companies, the tax will not be charged. Starting January 1 2018, VAT will be refunded not only to exporters but also to the economic entities in Armenia. First, these are construction companies, though there are risks, including corruption related one. For the first time during the recent years, fines for delay of tax payments will be reduced to 0.075% from 0.15%.