ArmInfo. The National Assembly of Armenia at the meeting on January 24 in the second and final reading amended the Tax Code.
As one of the authors of the document, MP of the RA National Assembly Artak Manukyan noted, the aim of the amendments is to activate the securities market. In particular, according to the deputy, the bill provides for the exemption of brokers involved in transactions with bonds and shares from VAT payments. In addition, it is also proposed to exempt dividends received from securities beneficiaries from income tax. Also, securities placed on the stock exchange are exempted from income tax payments. These initiatives, according to the deputy, will enable to activate the securities market and finance the economy using the capabilities of stock exchanges. At present, the deputy continued, deposits of the population are often used to finance the economy, however, the securities market can also become an important component for attracting investments.
Artak Manukyan reminded that upon receipt of dividends from short-term government securities, income tax is zero, and in commercial structures - 10%. Thus, according to the co-author of the document, the state itself does not contribute to the movement of capital in the real sector of the economy. Meanwhile, he continued, it is necessary, at a minimum, to ensure equal conditions for all market participants. He noted that in Russia, Kazakhstan, Georgia and other countries, these services are exempt from VAT, therefore, in this case, Armenia is not competitive. Moreover, the maximum effect of the application of the law will be about 60 million drams. Artak Manukyan stressed that the law is valid until December 31, 2024, expressing confidence that by this time the issue of securities will increase and interest rates will be reduced. Meanwhile, as Deputy Minister of Finance of Armenia Arman Poghosyan noted, the presented document is fundamentally contrary to the policy of the Government of the Republic of Armenia. According to him, a large-scale action program is being developed in Armenia to develop the securities market. The program is being developed by the Central Bank and the Ministry of Finance with the assistance of the International Monetary Fund. In total, the program will include actions on 15 points. This, according to the deputy minister, will contribute to targeted and phased development of the securities market, rather than using tax mechanisms.