ArmInfo. What happens if you did not have time to submit online income declaration for citizens of Armenia residing in Armenia on time? How much can a penalty be imposed for late submission of a declaration?: explains the RA State Revenue Committee.
As Arminfo previously reported the implementation of the Unified Platform of Electronic Services for Individuals for all resident citizens of the Republic started in 2023. The process will be organized in three stages, and the number of people required to submit a declaration will increase every year. The implementation of the system will be completed in 2025. At the first stage, a declaration of annual personal income tax for 2023 will have to be submitted by citizens who are citizens of the RA who as of 31 December 2023 hold positions of state service, community service and/or public service, as defined by the RA Law on Public Service, Resident citizens of the RA who as of 31 December 2023 are (were) participants (shareholders, equity holders or members) of a resident commercial entity that has declared a gross income of AMD1 billion or more for 2022, Resident citizens of the RA who are classified as "beneficial owners" within the framework of the RA Law on Combating Money Laundering and Terrorism Financing, i.e., individuals who:a. own, directly or indirectly, 20% or more of the voting shares (stocks or units) of the given legal entity or hold, directly or indirectly, 20% or more ownership share in the charter capital of such legal entity,b. exercise real (actual) control over such legal entity by other means,c. are official persons carrying out general or daily management of such legal entity's activity if no individual meets the requirements of clauses a and b above, Resident citizens of the RA who received a borrowing of AMD20 million or more during 2023.
The committee also reminds that administrative penalties will be applied for failing to submit the annual income tax declaration within the prescribed period. A warning will be issued for the first failure to submit, and a fine will be imposed if the declaration is not submitted within 30 days, as prescribed under Article 169.1 of the Armenian law on Administrative Violations. For persons not included in these groups, a penalty of 5,000 AMD is charged.
Then, in case of failure to submit a declaration within 30 days after the warning is applied (in accordance with paragraphs 1-4 of paragraph 4 of the same article) for citizens of the Republic of Armenia who, as of December 31, 2023, are participants (shareholders, equity owners, members) of commercial RA resident organizations that declared gross income of 1 billion AMD or more at the end of 2022, as well as those citizens who are considered the real beneficiaries of the RA Law "On Combating Money Laundering and Terrorist Financing", as well as those who in 2023 received a borrowing of 20 million AMD or more. After applying an administrative penalty, if the annual report is not submitted within 30 days, the amount of the penalty is doubled.
At the same time, the State Revenue Committee reports that within the framework of administrative proceedings initiated in connection with the failure to submit a tax return on the income of individuals, if evidence of the person's innocence is presented, the individual may be exempted from administrative liability.
