Wednesday, January 9 2019 15:25
Naira Badalian

Expert: Tax reforms will create burdensome conditions for the  majority of employees

Expert: Tax reforms will create burdensome conditions for the  majority of employees

ArmInfo. The introduction of an equalization (flat) income tax scale will not make life easier for those who receive salaries of up to 150 thousand drams. In a sense,  they will even suffer. This opinion was expressed on November 9 at a  press conference in Yerevan by the chairman of the Association of  Accountants of SMEs, a member of the Extended Council for Improving  the Revenue Policy of the Ministry of Finance of Armenia Vahagn  Hambartsumyan.

Currently, as Hambartsumian recalled, the following scale of taxation  is in effect in Armenia: those who receive a monthly income of up to  150 thousand drams pay 23%, from 150 thousand to 2 million drams -  28%, and more than 2 million drams - 36% . From July 1, 2019, Armenia  plans to switch to a flat income taxation system, which, regardless  of the amount of wages, will set the income tax at a rate of 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 the case of the transition to new  adjustments already in 2019, the tax losses of the state treasury are  estimated at 27.5 billion drams. Further, each percent, with other  things being equal, will "cost" the state budget 12.5 billion drams.

From 2020 to 2022 the government also offers equal rates of income  tax and dividend tax for citizens of Armenia and foreigners, setting  them at the level of 23% (from 20% to 18% income tax and from 10% to  5% dividend tax - Ed.). Losses in terms of tax revenues of the budget  in case of establishing equal conditions for residents and  non-residents on the tax on dividends will be 1-1.3 billion drams.

In order to compensate tax losses of the budget as a result of  lowering income tax and income tax rates, Armenia intends to expand  the list of excisable goods, raising also the excise rates on  cigarettes and alcohol-containing products, as well as revise the  taxation of gambling and environmental protection payments. "Taking  into account the fact that, for example, the list of excisable goods  will also include drinks with a sugar content of 5 g or more per 100  g of product, it turns out that for the end user - an employee with a  salary of up to 150 thousand drams, the tax burden will increase,  because their children will buy the same lemonade at a higher price  ", - he explained. In the meantime, according to the official data of  the Armenian SRC(State Revenue Committee), it is the lion's share of  hired workers - 64.9% receive a salary of up to 150 thousand drams,  34.8% receive a salary of up to 2 million drams, and employees with a  salary above 2 million drams 3%.

Earlier, ArmInfo reported that the Ministry of Finance of Armenia on  the single portal of legal acts e- draft.am submitted the draft  amendments <On Amendments and Additions to the Tax Code of the  Republic of Armenia>. As part of the initiative, the Ministry of  Finance proposes to increase the rates of excise tax on tobacco  products and alcohol from 1 July 2019 at priority rates. It is also  planned to increase the minimum price for vodka and ethyl alcohol -  from the current 2500 drams per 1 liter of 100% alcohol to 6 thousand  drams. From July 1, 2019, the project proposes to expand the list of  excisable goods, including drinks with a sugar content of 5g or more  per 100 g of product, increase the excise rate on beer, and from  January 1, 2020, review the environmental tax rate for emissions of  pollutants into the car's atmosphere with an engine power of 301  horsepower and more - instead of the current 50 drams for 1l.s set  150 drams.

From January 1, 2020, Armenia plans to completely abandon the patent  tax system with the transition to a system of general taxation. From  January 1, 2020 it is also proposed to revise the taxation of the  organization and conduct of gambling (including games on the  Internet), sweepstakes (Internet sweepstakes).  In particular, it is  envisaged to tax the gambling business with a more fair tax - in the  general tax field. The government also plans to revise the principles  of taxation of gains in the framework of this activity, establishing  that personal incomes are subject to income tax, and the organizer of  gambling as a tax agent bears the obligation to calculate and  calculate income tax. 

POST A COMMENT
Input digits     


News
Tigran Avinyan and Mark Pritchard discussed prospects for deepening  cooperation between Armenia and the UKTigran Avinyan and Mark Pritchard discussed prospects for deepening  cooperation between Armenia and the UK
PSRC introduced new regulations for natural gas consumersPSRC introduced new regulations for natural gas consumers
Study: Even with small volumes of the market, Armenia is able to  triple the volume of investmentsStudy: Even with small volumes of the market, Armenia is able to  triple the volume of investments
"Rosgosstrakh Armenia" continues to lead among insurance companies in  list of major taxpayers in Armenia
Government approved distribution among communities of subventions in  amount of 1.9 billion dramsGovernment approved distribution among communities of subventions in  amount of 1.9 billion drams
Minister: Positive expectations formed in Armenia`s business  communityMinister: Positive expectations formed in Armenia`s business  community
EAEU countries began to jointly produce elevatorsEAEU countries began to jointly produce elevators
Subregional Innovation Policy Outlook launched in ArmeniaSubregional Innovation Policy Outlook launched in Armenia
Expert: State Budget revenues over-fulfillment has nothing to do with  real GDP growth Expert: State Budget revenues over-fulfillment has nothing to do with  real GDP growth 
Pension fund Amundi-ACBA-Asset-Management celebrates 5 years of  activityPension fund Amundi-ACBA-Asset-Management celebrates 5 years of  activity
Vache Terteryan: Armenia is interested in localizing alternative  energy sourcesVache Terteryan: Armenia is interested in localizing alternative  energy sources
Possible disputes over the construction project of a new thermal unit  in Yerevan will be resolved in the International Chamber of CommercePossible disputes over the construction project of a new thermal unit  in Yerevan will be resolved in the International Chamber of Commerce
Chinese company interested in setting up basalt fiber manufacturing  enterprise in ArmeniaChinese company interested in setting up basalt fiber manufacturing  enterprise in Armenia
In 2019-2023 In 2019-2023 "ML MINING" LLC invests in development of production of  4 billion drams
Karen Yeghiazaryan has been appointed as Chairman of Management Board  of EvocabankKaren Yeghiazaryan has been appointed as Chairman of Management Board  of Evocabank
Babken Tunyan: The PABSEC platform is needed for communication; one  should not underestimate or overestimate it.Babken Tunyan: The PABSEC platform is needed for communication; one  should not underestimate or overestimate it.
"Haypost" and "Energoimpex" companies will remain in ownership of  Armenian state
At initiative of EC, a working meeting was held at Ministry of  Economy of RA regarding use of EU Taiex and Twining tools by public  sectorAt initiative of EC, a working meeting was held at Ministry of  Economy of RA regarding use of EU Taiex and Twining tools by public  sector
19th International Specialized Exhibition 19th International Specialized Exhibition "FOOD & DRINKS EXPO 2019"  will be held in Yerevan
Armenia approved a protocol on cooperation of EAEU countries with  Vietnam on  exchange of customs informationArmenia approved a protocol on cooperation of EAEU countries with  Vietnam on  exchange of customs information
7.4 billion drams out of an additional 62 billion dram in tax  revenues will be additionally allocated to the implementation of  programs in the field of road construction in Armenia7.4 billion drams out of an additional 62 billion dram in tax  revenues will be additionally allocated to the implementation of  programs in the field of road construction in Armenia
Park Group Company intends to implement in Yerevan a large investment  program worth 7.5 billion dramsPark Group Company intends to implement in Yerevan a large investment  program worth 7.5 billion drams
Armenian government to allocate 40 million drams to repair  Yerevan-Garni-Geghard roadArmenian government to allocate 40 million drams to repair  Yerevan-Garni-Geghard road
Jermuk Group Company invests AMD 363 million in production expansionJermuk Group Company invests AMD 363 million in production expansion
Minister assures: household appliances production plant in Armenia is  not a mythMinister assures: household appliances production plant in Armenia is  not a myth
Chinese business intends to invest $ 5 million in the production and  bottling of mineral waterChinese business intends to invest $ 5 million in the production and  bottling of mineral water
Four telecom operators in Armenia reduced tax payments to the state  treasury in I quarter of 2019 by 45.6% per annumFour telecom operators in Armenia reduced tax payments to the state  treasury in I quarter of 2019 by 45.6% per annum
EAEU is developing cooperation with the Pacific AllianceEAEU is developing cooperation with the Pacific Alliance
Gazprom Armenia continues to top the list of the largest taxpayersGazprom Armenia continues to top the list of the largest taxpayers
Armenian MFA: Polish companies are interested in the Armenian marketArmenian MFA: Polish companies are interested in the Armenian market


Exchange rates
24.05.2019
RUB7.440.02
USD480.030.05
EUR537.152.69
GBP609.352.85
CAD356.930.62
JPY43.770.16
CNY69.580.01
CHF478.552.90


Experts
Yulia Ustyugova: Armenia can get access to IMF “insurance line”Yulia Ustyugova: Armenia can get access to IMF “insurance line”
Armand Arton: The question whether citizenship should be granted in  return for investments is rather rhetoricalArmand Arton: The question whether citizenship should be granted in  return for investments is rather rhetorical
Former head of the Ministry of Finance: <Confrontation> with Lydian may cost much to ArmeniaFormer head of the Ministry of Finance: with Lydian may cost much to Armenia
Vardan Aramyan: It will be unreasonable if the government goes to revise the allowable national debt ceiling in GDPVardan Aramyan: It will be unreasonable if the government goes to revise the allowable national debt ceiling in GDP
HSBC Bank Armenia increases efficiency and focuses on digital servicesHSBC Bank Armenia increases efficiency and focuses on digital services
Bulgarian Minister: The level of Armenian-Bulgarian economic  cooperation is still unsatisfactoryBulgarian Minister: The level of Armenian-Bulgarian economic  cooperation is still unsatisfactory
Expert: Recruitment market in Armenia from the point of view of  supply and demand is sleepingExpert: Recruitment market in Armenia from the point of view of  supply and demand is sleeping
Expert: Despite the adequacy of Armenian banks` capitals, the  opportunities for its optimal use are severely limitedExpert: Despite the adequacy of Armenian banks` capitals, the  opportunities for its optimal use are severely limited
Association of Organic Agriculture is being created in ArmeniaAssociation of Organic Agriculture is being created in Armenia
Pailak Tadevosyan: Governments change in Armenia, but taxation  approaches do not changePailak Tadevosyan: Governments change in Armenia, but taxation  approaches do not change
Rouben Indjikian: Everyone should follow the established unified and fair rules of the gameRouben Indjikian: Everyone should follow the established unified and fair rules of the game
Mher Arakelyan:  Armenia`s payment business has great prospectsMher Arakelyan:  Armenia`s payment business has great prospects
Rating-Agentur Expert RA GmbH and AmRating issued an industry report  on Armenia`s banking systemRating-Agentur Expert RA GmbH and AmRating issued an industry report on Armenia`s banking system
Igor Nazaruk: Each planted sprout has the right to a successful prospect if it is cherished and taken care ofIgor Nazaruk: Each planted sprout has the right to a successful prospect if it is cherished and taken care of
Ara Khzmalyan: Armenia is comfortable to Russian touristAra Khzmalyan: Armenia is comfortable to Russian tourist
The Armenian delegation to the US followed the advice of President TrumpThe Armenian delegation to the US followed the advice of President Trump
Outflow of population and passivity of the Diaspora pushes property prices downOutflow of population and passivity of the Diaspora pushes property prices down
Finombudsman: Amendments to the Civil Code on the imposition of fines and penalties will reduce the number of outstanding loans and  non-creditworthy consumersFinombudsman: Amendments to the Civil Code on the imposition of fines and penalties will reduce the number of outstanding loans and non-creditworthy consumers
Vahan Shakaryan: If we promote Armenia, the promotion of economic sectors will not be a run with obstacles, but a light run for short distancesVahan Shakaryan: If we promote Armenia, the promotion of economic sectors will not be a run with obstacles, but a light run for short distances
Gagik Aghajanyan: There is no need to look for alternatives - it is necessary to work and develop actual   directionsGagik Aghajanyan: There is no need to look for alternatives - it is necessary to work and develop actual   directions

Search by date

Government Bonds

Issue volume

10 billion

Volume of T-bills for placement

200 million

Volume of submitted competitive applications

200 million

Volume of satisfied bids

200 million

Yield at cut-off price

 5.8314%

Maximum yield

 5.8314%

Мinimum yield

 5.8314%

Weighted average yield

 5.8314%

Number of participants

2

The maturity date of T-bills

03.02.2020

ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000

Commented
Forecast: Electricity exports to the Middle East through Iran are a  key component of Armenia`s geo- economic strategyForecast: Electricity exports to the Middle East through Iran are a  key component of Armenia`s geo- economic strategy
ArmInfo IC: In Armenia,  CMTPL loss ratio increased up to 64.5% in Q1  2019ArmInfo IC: In Armenia,  CMTPL loss ratio increased up to 64.5% in Q1  2019
Overdue loans accelerate growth in banking system of ArmeniaOverdue loans accelerate growth in banking system of Armenia
RA Prime Minister: European Union is not ready to finance 100% of  development programs implementation in ArmeniaRA Prime Minister: European Union is not ready to finance 100% of  development programs implementation in Armenia
T.Avinyan: The Government is open for cooperation and encourages  active dialogue and interaction in all areas T.Avinyan: The Government is open for cooperation and encourages  active dialogue and interaction in all areas 
Agreement on construction of a new unit with combined gas cycle  signed in YerevanAgreement on construction of a new unit with combined gas cycle  signed in Yerevan
Veolia Jur: Regulatory charges are false and unfoundedVeolia Jur: Regulatory charges are false and unfounded
Armenian Prime Minister: We are gaining momentum for economic takeoffArmenian Prime Minister: We are gaining momentum for economic takeoff
Through the mobile banking application of Ardshinbank you can get a  loan in seconds.Through the mobile banking application of Ardshinbank you can get a  loan in seconds.
By the end of 2018, By the end of 2018, "Galburdjian Group" will launch the production of  sesame oil in Armenia
Expert: Armenia has a problem with effective use of water resources,  rather than small hydropower stationsExpert: Armenia has a problem with effective use of water resources,  rather than small hydropower stations
Investment forum Investment forum "Energy Week 2018" to be held in Armenia
Expert: It is necessary to start implementing the program for the  construction of a new nuclear unitExpert: It is necessary to start implementing the program for the  construction of a new nuclear unit
The Armenian government suggests raising the minimum pension by 60%The Armenian government suggests raising the minimum pension by 60%
The updated feasibility study of construction project of electricity transmission line Armenia- Georgia will be ready by the end of the year - the Ministry of EnergyThe updated feasibility study of construction project of electricity transmission line Armenia- Georgia will be ready by the end of the year - the Ministry of Energy
Eurasian Development Bank wishes to expand its activities in ArmeniaEurasian Development Bank wishes to expand its activities in Armenia
$ 100 million to be invested in repatriation project Build Armenia$ 100 million to be invested in repatriation project Build Armenia
FRV: Armenia`s growing desire to increase renewable energy sources is  a decisive factorFRV: Armenia`s growing desire to increase renewable energy sources is a decisive factor
Suren Papikyan: It`s safe now to do business in Armenia, assures  Armenian MinisterSuren Papikyan: It`s safe now to do business in Armenia, assures  Armenian Minister
Armenian state debt started reducing up to $6.7 bln to June 1 2018Armenian state debt started reducing up to $6.7 bln to June 1 2018
Minister: Implementation of program on liberalization of the electric  power complex of Armenia will be completed within the next two yearsMinister: Implementation of program on liberalization of the electric  power complex of Armenia will be completed within the next two years
Nikol Pashinyan: In a number of cases after paying fines and  penalties the borrowers will be allowed to take new loan Nikol Pashinyan: In a number of cases after paying fines and  penalties the borrowers will be allowed to take new loan 
German bank KFW urges Armenia to build power line in the direction to  GeorgiaGerman bank KFW urges Armenia to build power line in the direction to  Georgia
Anna Chobanyan-one of most likely candidates for new Head of General  Department of Civil Aviation Anna Chobanyan-one of most likely candidates for new Head of General  Department of Civil Aviation 
IFAD confirms its readiness to develop and implement new joint programs with Armenia`s Agriculture MinistryIFAD confirms its readiness to develop and implement new joint programs with Armenia`s Agriculture Ministry
Rosselkhoznadzor asks not politicize the issue of deliveries of tomatoes from Armenia to RussiaRosselkhoznadzor asks not politicize the issue of deliveries of tomatoes from Armenia to Russia