Wednesday, June 12 2019 13:29
Alexandr Avanesov

Deputy Minister: As a result of applying the new provisions of the Tax Code, the estimated losses of the state budget of Armenia will be 45 billion drams

Deputy Minister: As a result of applying the new provisions of the Tax Code, the estimated losses of the state budget of Armenia will be 45 billion drams

ArmInfo. The fiscal risks associated with the application of the new provisions of the Tax Code of Armenia should not be expected. RA Deputy Minister of Finance Arman Poghosyan announced this on June 12 at the hearings in the parliamentary commission on economic issues.

According to him, as a result of applying the new provisions of the Tax Code, the estimated losses of the state budget of Armenia will be 45 billion drams. It is expected that the estimated losses of the state treasury on the income tax line will be 30 billion drams, and on the income tax line - 15 billion drams.  Nevertheless, according to the deputy minister, the actual losses will be at the level of about 16 billion drams, since all risks will be reduced due to the revitalization and diversification of the economy. Today, Arman Poghosyan continued, in Armenia there is a situation in which the gaming business plays a significant role in the country's SRC, but in the structure of taxes there is a small proportion. "We want to change the vector of tax burdens," the deputy minister stressed. He added that export-oriented companies will become a priority for the government of the country so that they "start breathing a little." And if in 2020 it is not possible to collect 15-16 billion drams from 45 billion drams, it is planned to fill this gap from other sources without damaging economic activity. In turn, another Deputy Minister of Finance Armen Hayrapetyan noted that the breach of 16 billion drams can be solved by strengthening tax administration.

To recall on June 7, the National Assembly of Armenia in the first reading adopted the draft amendments to the Tax Code of the country. As expected, following the adoption of the document in the long term, it will provide an additional 0.8 pp. GDP growth, additional consumption growth will be 0.3-0.4 percentage points, and employment - approximately 0.5 percentage points. The non-taxable VAT threshold for turnover will be increased from the current 58.35 million ($ 120 thousand) to 115 million drams ($ 235 thousand). From January 1, 2019, the Ministry of Finance will also raise the non-taxable threshold for self- employed citizens and family business entities from 9 million drams and 18 million drams, respectively, to 24 million drams.

As a result, they only have to pay import duties on goods. From January 1, 2020, Armenia plans to abandon the licensing tax system with a transition to the general taxation system. The republic will give up two alternative taxation systems - self-employed and family entrepreneurship. A microenterprise with a non- taxable threshold of up to 24 million drams will come to replace them. Micro-business entities will not be considered as business entities that carry out specialized activities, in particular, accounting, advocacy, and consulting.

Microbusiness will be exempt from all types of taxes other than income tax, which will be 5 thousand drams. From January 1, 2020, Armenia will switch to a flat income taxation system, which, regardless of the amount of wages, will be set at 23%. Moreover, until 2023 the rate will gradually decrease to 20%. In parallel, the government envisages a gradual return to the previous conditions of the mandatory pension system. From 2020 to 2022 The government also proposes to introduce equal rates of income tax and dividend tax for citizens of Armenia and foreigners, setting them also at 23% (profit tax from 20% to 18% and dividend tax from 10% to 5% - Ed. note).

The Ministry of Finance also proposes to fix that the pensions of residents of individuals received from outside are not subject to taxation in Armenia. The Ministry of Finance of Armenia in the new document took into account the interests of auto-importers - individuals. The rule obliging them from June 1, 2018 when selling a 2nd car to pay a 20% income tax will be revised and reduced to 1% of the price of the car, but not less than 150 drams for each horsepower. The norm will be given a retroactive effect from July 1, 2018, which will allow to recalculate the tax debt accumulated since the entry into force of the new tax regulation. In addition, the Ministry of Finance of Armenia proposes to exempt from paying tax in the case of selling a car after 365 days after its purchase.

In 2019, the Ministry of Finance of Armenia proposes to review and "enrich" the list of excisable goods. In order to compensate tax losses of the budget as a result of lowering the income tax and turnover tax, and their total negative effect on the budget is estimated at 39 billion drams, the Ministry of Finance proposes to increase the rates of excise tax on tobacco products and alcohol from July 1, 2019 as well as beer. A system of annual adjustment of the excise tax rate (by 4%) will be introduced. Electronic cigarettes (according to the IGOS technology) will be taxed in the same way as traditional ones. The initiative will provide additional revenues of 6-7 billion drams to the state treasury. It is also planned to increase the minimum price for vodka and ethyl alcohol - from the current 3,500 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 at a rate of 10% of the cost, but not less than 30 drams per liter. Due to this, tax revenues of the state treasury will increase by 3 billion drams.

Already from January 1, 2020, the Cabinet intends to revise the environmental tax rate for emissions of pollutants into the atmosphere of cars with an engine power of 301 horsepower and more - instead of the current 50 drams for 1l.s, install 150 drams. The Cabinet of Ministers of Armenia also intends to increase consular fees, state duty rates on the provision / replacement of state numbers, as well as non-provision of licenses to financial institutions. 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, the taxation of sweepstakes will be transferred to the field of income tax regulation since 2020, gambling - from 2021. At this stage, the Ministry of Finance refrains from the tax on winnings. In addition, the turnover tax for catering representatives up to 10% will not enter into force from 2020, as provided for by the new Tax Code. The new tax rates came into force in 018 - the license tax for restaurants (per square meter) was replaced with 6% VAT. From January 1, 2019, the tax burden was increased to 8%, and from 2020 it should was up to 10% of turnover. This is about maintaining the adjustment that came into force on July 1, 2018, that is, 6% VAT, with the possibility of a tax deduction of 3% of the documented expenses, but not less than 4% of turnover. Profit tax with the purchase and sale of property between individuals will be exempted from income tax. Transactions between a natural person and an individual entrepreneur on the acquisition of a land plot will also be exempted from the payment of a 10% income tax.  

POST A COMMENT
Input digits     


News
Armenian government discusses applications for budget financing of  the Ministry of Economy for 2020Armenian government discusses applications for budget financing of  the Ministry of Economy for 2020
Head of SRC on positive dynamics in labor market: New jobs and  removing from  Head of SRC on positive dynamics in labor market: New jobs and  removing from  "shadow" 
Armenian SRC repaid its obligations in the amount of 1.6 billion  drams to 2006 old debtors with VAT debtsArmenian SRC repaid its obligations in the amount of 1.6 billion  drams to 2006 old debtors with VAT debts
ADB with a package of implemented programs worth more than $ 1.5  billion is one of the most important development partners of Armenia  - AvinyanADB with a package of implemented programs worth more than $ 1.5  billion is one of the most important development partners of Armenia  - Avinyan
Within the framework of the Armenian-German partnership, the Central  Bank of the Republic of Armenia held a discussion meeting on the  topic of Within the framework of the Armenian-German partnership, the Central  Bank of the Republic of Armenia held a discussion meeting on the  topic of "Introduction of Livestock Insurance"
VII International Forum Anti-Counterfeiting-2019 will be held on  November 12-13, 2019 in YerevanVII International Forum Anti-Counterfeiting-2019 will be held on  November 12-13, 2019 in Yerevan
Armenian Ministry of High-Tech Industry announces a contest for  technology companies to participate in an innovative exhibition in  SingaporeArmenian Ministry of High-Tech Industry announces a contest for  technology companies to participate in an innovative exhibition in  Singapore
The Parliament of Armenia in the first reading amended the Subsoil  CodeThe Parliament of Armenia in the first reading amended the Subsoil  Code
In Armenia, discussing the possibility of introducing risk insurance  in the field of livestockIn Armenia, discussing the possibility of introducing risk insurance  in the field of livestock
Emirates Air Arabia Airlines prepares to launch its third flight in  the direction of Abu Dhabi - YerevanEmirates Air Arabia Airlines prepares to launch its third flight in  the direction of Abu Dhabi - Yerevan
Armenian government discussed applications for budget financing of  the Ministry of Justice for 2020Armenian government discussed applications for budget financing of  the Ministry of Justice for 2020
In 2018 Armenia paid  $ 2 million fees for loans In 2018 Armenia paid  $ 2 million fees for loans "gathering dust in  the corner"
In the first half of 2020, it is planned to complete work on the  development of a strategy for the mining industryIn the first half of 2020, it is planned to complete work on the  development of a strategy for the mining industry
Minister: Planned changes in sectoral policy will provide an  opportunity in 2020 to ensure economic growth above the set levelMinister: Planned changes in sectoral policy will provide an  opportunity in 2020 to ensure economic growth above the set level
Armenia and India will study the most appropriate areas of bilateral  cooperation in trade and economic fieldsArmenia and India will study the most appropriate areas of bilateral  cooperation in trade and economic fields
Converse Bank is issuing new bondsConverse Bank is issuing new bonds
Economist: WB forecasts an increase in the ratio of net FDI to GDP of  Armenia from 2% to 2.3% for 2019Economist: WB forecasts an increase in the ratio of net FDI to GDP of  Armenia from 2% to 2.3% for 2019
Minister: With support of GIZ 52 Armenian communities increased their  capabilitiesMinister: With support of GIZ 52 Armenian communities increased their  capabilities
The Cafesjian Center for the Arts and Beeline Present “Teen Artists Platform” Project The Cafesjian Center for the Arts and Beeline Present “Teen Artists Platform” Project 
Tigran Avinyan: Other airlines can also receive an air tax benefit  granted to Tigran Avinyan: Other airlines can also receive an air tax benefit  granted to "Ryanair"
Economist: In 2020, Armenia will ensure high-quality economic growthEconomist: In 2020, Armenia will ensure high-quality economic growth
Armenian Armenian "Chessify" company presented Armenian potential in the field  of artificial intelligence in Dubai
About 30 thousand less unemployed in Armenia - PashinyanAbout 30 thousand less unemployed in Armenia - Pashinyan
The main challenge for Armenia is the restoration of the lost trust  of citizens, business and an external investor in power - ExpertThe main challenge for Armenia is the restoration of the lost trust  of citizens, business and an external investor in power - Expert
Artak Manukyan: Armenia may record higher GDP growth rates than the  global average this yearArtak Manukyan: Armenia may record higher GDP growth rates than the  global average this year
Mher Grigoryan discusses cooperation issues and jointly implemented  programs with WB representativesMher Grigoryan discusses cooperation issues and jointly implemented  programs with WB representatives
World Bank: Industry still maintains the fastest expansion in Armenia World Bank: Industry still maintains the fastest expansion in Armenia 
Armenian Central Bank and IMF agree to hold a joint scientific  conference in Dilijan in 2020Armenian Central Bank and IMF agree to hold a joint scientific  conference in Dilijan in 2020
In September 2019, passenger traffic through the airports of Armenia  increased by 16.5%In September 2019, passenger traffic through the airports of Armenia  increased by 16.5%
YPO international network shows interest in investment opportunities  in ArmeniaYPO international network shows interest in investment opportunities  in Armenia


Exchange rates
23.10.2019
RUB7.45-0.03
USD475.990.03
EUR528.92-1.44
GBP611.79-3.72
CAD363.41-0.42
JPY43.910.08
CNY67.28-0.07
CHF480.99-0.46


Experts
Head of PSRC: Whatever the agreement, the domestic tariff is  dependent on the price at the borderHead of PSRC: Whatever the agreement, the domestic tariff is  dependent on the price at the border
IMF: Armenia needs to achieve sustainable inclusive growthIMF: Armenia needs to achieve sustainable inclusive growth
Artur Atoyan: Problems of fish farmers are solved by the communist  method, that is, they are not solved at allArtur Atoyan: Problems of fish farmers are solved by the communist  method, that is, they are not solved at all
HSBC Bank Armenia digitalizes cooperation with retail clients HSBC Bank Armenia digitalizes cooperation with retail clients 
AmRating agency in cooperation with European Rating-Agentur Expert RA  GmbH has issued regular research on Armenia`s banking systemAmRating agency in cooperation with European Rating-Agentur Expert RA  GmbH has issued regular research on Armenia`s banking system
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

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
Russian processing company Russian processing company "MultiCarta" discussed cooperation  opportunities with Yerevan Municipality in the transport sector
$ 270 Million to be invested in the construction of the first  skyscraper in Yerevan$ 270 Million to be invested in the construction of the first  skyscraper in Yerevan
The AGBU Women Entrepreneurs Program Launched in Artsakh: FRUITFUL  ARMENIA Foundation is the partnerThe AGBU Women Entrepreneurs Program Launched in Artsakh: FRUITFUL  ARMENIA Foundation is the partner
Forecast: Armenia has good prospects for expanding its presence in  the Polish marketForecast: Armenia has good prospects for expanding its presence in  the Polish market
Armenian government`s delegation headed by Prime Minister will take  part in the St. Petersburg International Economic Forum on June 6-7Armenian government`s delegation headed by Prime Minister will take  part in the St. Petersburg International Economic Forum on June 6-7
Concessionaire of Zvartnots International Airport promises to become  one of the best operators in the worldConcessionaire of Zvartnots International Airport promises to become  one of the best operators in the world
Arthur Javadyan: Central banks are not responsible for economic  growthArthur Javadyan: Central banks are not responsible for economic  growth
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
From January 1, 2020, the cost of customs clearance of cars from  non-EEU countries in Armenia will increase by at least 4-5 fold:  whether the market for used cars is going upFrom January 1, 2020, the cost of customs clearance of cars from  non-EEU countries in Armenia will increase by at least 4-5 fold:  whether the market for used cars is going up
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
Converse Bank offers online loans at a low effective interest rateConverse Bank offers online loans at a low effective interest rate
Renco company will attract additional shareholders and partners to  the project of building a new thermal-power plant in ArmeniaRenco company will attract additional shareholders and partners to  the project of building a new thermal-power plant 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%