ArmInfo. If a citizen works abroad, but is at the same time a resident of Armenia, then he is obliged to independently calculate and pay income tax on the income he receives from this work, as well as submit an online income declaration to the tax authority of the Republic of Armenia no later than May 1 of the following year, the State Revenue Committee of Armenia reports.
Earlier, Hetq online newspaper reported that thousands of citizens who went to Russia to work, earned money, and then returned to Armenia, received letters from the State Revenue Committee stating that they have tax debts in the amount of 100 thousand to 1 million drams and must pay these amounts. In Russia the income tax rate is 13%, and in Armenia it is 20% currently and 21% in 2022. Thus, the citizen will have to pay the difference of 7-8%. It is noteworthy that citizens were not informed in advance that they would have to pay taxes on income already taxed in the Russian Federation, if only because they would have to "defer" the difference, which they would also have to pay to their "home tax authority."
As the State Revenue Committee of Armenia notes, the norm for paying income tax on taxable income received by individuals-residents of the Republic of Armenia in foreign countries is not new. In particular, RA individuals-residents who are taxed in the Republic of Armenia and foreign countries and receive income, according to the legislation of the RA, are required to calculate and pay income tax at established rates. The amount of income tax calculated on income received is reduced by the amount of tax paid by individuals in foreign countries, which should not exceed the amount of income tax calculated in Armenia. And if there is income tax payable in Armenia, then they are required to calculate it themselves and submit the annual income tax calculation to the tax authority before May 1 of the year following the reporting year, exclusively in electronic form.
The Armenian tax office reports that the governments of the participating states of the Agreement of June 4, 1999 "On cooperation and mutual assistance in matters of compliance with tax legislation and combating violations in this area" between the participating states of the Cooperation of Independent States, signed in Astana on November 2, 2018, which was ratified in the Republic of Armenia on February 12, 2020. As part of this protocol, the tax authority received information about income received by individuals in the CIS member states.
Taking into account the abovementioned, the State Revenue Committee, in accordance with the procedure established by law, sent notifications to citizens who, according to the tax legislation of the Republic of Armenia, are obliged to calculate and pay taxes in order to avoid strict administration. At the same time, the committee expresses its readiness, within the framework of soft administration, to hold discussions on the topic of tax legislation.
