ArmInfo. The State Revenue Committee of Armenia calls on employers to refrain from using the preferential tax system for micro-business enterprises for other purposes.
As noted in the SRC appeal, from January 1, 2020, resident commercial organizations and individual entrepreneurs with sales turnover of up to 24 million drams are exempted from paying taxes. This measure is aimed at promoting exclusively small and medium-sized businesses through the provision of tax benefits. At the same time, there are risks that the introduction of a micro-enterprise system may be used by dishonest taxpayers who will try to offer their employees registration as a micro-enterprise entity in order to avoid tax liabilities.
In this regard, the State Revenue Committee urges employers and proponents to refrain from using the privileged micro-enterprise system for other purposes. At the same time, according to the report, SRC hasappropriate technical and analytical capabilities to identify these risks, which avoids tax evasion. Earlier, ArmInfo reported that from January 1, 2020 Armenia will abandon two alternative tax systems - self-employed and family entrepreneurship, and micro-entrepreneurship with an untaxed threshold of up to 24 million drams will replace it. Entities of micro-entrepreneurship will not be considered business entities that carry out specialized activities, in particular, accounting, advocacy, and consulting. Micro- business will be exempted from all types of taxes except income tax, which will make 5 thousand drams.