Wednesday, February 21 2024 15:06
Naira Badalian

Rustam Badasyan: until issue of taxation of labor migrants is finally  resolved, no coercive measures will be used

Rustam Badasyan: until issue of taxation of labor migrants is finally  resolved, no coercive measures will be used

ArmInfo.The State Revenue Committee (SRC) of Armenia is discussing with the Ministry of Finance  the issue of applying benefits for certain categories of citizens traveling to work in the Russian Federation. Head of the State Revenue Committee of Armenia Rustam Badasyan stated  on February 21  in a conversation with journalists.

Earlier, thousands of citizens who travel to Russia for temporary  work, upon returning home, received letters from the State Revenue  Committee stating that they have tax debt in the amount of 100  thousand to 1 million drams. In Russia the income tax rate is 13%,  and in Armenia it is 20% currently and 21% in 2022.  This difference  is 7-8% and must be paid by labor migrants, plus late fees (fines and  penalties) of 0.04% for each unpaid day. It is noteworthy that  citizens were not aware of this in advance.

According to Badasyan, the decision to tax the income of labor  migrants, was in effect in  2018 as well(the Velvet Revolution,  ed.  note). In addition, the State Revenue Committee, as the body  responsible for collecting taxes, after receiving information from  partner countries in the CIS about the income received by citizens of  the Republic of Armenia, was simply obliged to carry out certain  administrative actions. The information was received within the  framework of the "Protocol on electronic exchange of information  between CIS member states for tax administration purposes," which was  ratified by the Republic of Armenia on February 12, 2020. The  document was signed between the member states of the Commonwealth of  Independent States in Astana on November 2, 2018. At the same time,  as Badasyan noted, this regulation is not imperative.

"Since the issue was raised from the point of view of its social  justice, I think that in relation to certain types of income, in  certain amounts, tax benefits can be applied, suggesting changes in  the Tax Code," said the chief tax officer, pointing out that  discussions in this direction have already started with the body that  determines tax policy - the Ministry of Finance of Armenia.

The head of the State Revenue Committee called for not politicizing  this issue in order to avoid unnecessary stress for the population.  Information from the CIS countries was received for the first time,  which requires careful analysis and discussion. However, according to  him, taxes on this line have no value from a fiscal point of view.

Rustam Badasyan assured that until the issue is finally resolved, no  coercive measures will be used. 

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