ArmInfo. The decision of the State Revenue Committee of Armenia on taxation of labor migrants and penalties in case of non-payment is extremely unfair. Tatevik Bezhanyan, Advocacy Officer at Armenian Caritas Migration and Development Project , stated during a press conference on February 16.
We are talking about the decision of the State Revenue Committee of Armenia to tax labor migrants working outside of Armenia, in particular in Russia (where their lion's share are), in the amount of the difference in the income tax paid according to the legislation of Armenia and the Russian Federation (in the amount of 8%). In addition, the Committee imposed penalties of 0.4% for each day of non-payment.
According to Tatevik Bezhanyan, to comply with the new requirements from the State Revenue Committee, labor migrants will also need the services of an accountant, which they will also need to pay for. These are hard-to-get amounts for labor migrants, given that the bulk of the money they earn goes to cover the household expenses of their families. The ruble depreciation factor should also be taken into account, due to which the incomes of Armenian workers have decreased by 2 times. The SRC's decision is fraught with serious consequences for our citizens who are unable to fulfill their tax obligations to the state. For example, in case of non-payment, their property may be confiscated, etc.
In this regard, Bezhanyan considers it appropriate to introduce such innovations starting next year, but only after the State Revenue Committee has carried out a large-scale information campaign to labor migrants about the additional tax obligations that they may have upon returning to Armenia.
"Everyone who received a letter from the State Revenue Committee about tax obligations and fines had concluded legal employment contracts, the employer paid taxes for them in the Russian Federation. And as a result, it turned out that those who worked illegally, did not have an employment contract, did not pay taxes to the state treasury of the Russian Federation, were in a better position," the expert emphasized. Referring to the RA law, Bezhanyan said that labor migrants will not be burdened with tax obligations if they stay outside Armenia working for 183 days or more.
According to data for 2022, the number of labor migrants from Armenia with an employment or civil contract in the Russian Federation exceeded 130 thousand people.
As Hetq online newspaper ("Trace") reports , thousands of citizens who went to Russia to work upon returning to Armenia received letters from the State Revenue Committee stating that they had tax debts in the amount of 100 thousand to 1 million drams.
"Based on the abovementioned, it is recommended to submit an annual calculation of income tax and social contributions for 2022 to the tax authority as soon as possible and pay the resulting tax obligations," says a message sent to a citizen from the State Revenue Committee, in which special emphasis is placed on the agreement signed between the governments Armenia and Russia have an agreement on the avoidance of double taxation. In other words, according to the SRC, this process is not double taxation. The SRC has already notified 1,005 individuals, from whom it is demanding a total of 187 million drams. In 2020, 122 individuals were notified, from whom the State Revenue Committee is demanding 21.3 million drams. 96 individuals were notified of income received in 2021, from whom 13.2 million drams are required to be withdrawn. Based on income received in 2022, 153.3 million drams are required from 787 individuals. It is noteworthy that the citizens of Armenia were not informed in time about the adopted protocol, which must now be implemented by the State Revenue Committee.
