Know the penalties for late personal income tax filing

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.