Friday, February 23 2024 10:58
Naira Badalian

Armenia`s authorities suspend taxation of labor migrants 

Armenia`s authorities suspend taxation of labor migrants 

ArmInfo.Reacting to the objective dissatisfaction of citizens, the Armenian authorities decided not to tax Armenian citizens who went to work abroad for a period specified by law if they paid income tax in the country where the income was received, Chairman of the State Revenue Committee Rustam Badasyan stated on February 23 at a meeting of the Cabinet of Ministers.

According to Badasyan, throughout the entire tax history of Armenia,  there has been a procedure for paying tax on income received by a  resident individual of the Republic of Armenia both on the territory  of the republic and abroad, taking into account all exceptions within  the framework of agreements on the exclusion of double taxation.

However, there were no mechanisms to implement this decision. After  Armenia joined the CIS agreement on the electronic exchange of  information on income and taxes paid by citizens of Commonwealth  countries in 2020, the tax authority of the Republic of Armenia  received information on income received by individuals in the CIS  member states. "The information was received for the first time and,  as expected, the tax authority began soft administration - citizens  were notified of the formed tax obligations," he said. 

Prime Minister Nikol Pashinyan, in turn, addressing the  dissatisfaction of residents of the Gegharkinuk region, who blocked  the Yerevan-Martuni highway on February 21, demanding to cancel the  decision of the State Revenue Committee, called on them to reconsider  their attitude towards the institution of paying taxes. According to  him, it is thanks to the taxes paid by citizens that roads, medical  centers, schools and kindergartens are built, including in this  region.

According to data for 2022, the number of labor migrants from Armenia  who have an employment or civil contract in the Russian Federation  exceeds 130 thousand people.