All tax administration in Armenia is primarily focused on large  businesses - State Revenue Committee Head 

ArmInfo.Compared to 2017, the state budget of Armenia in 2024 will be doubled, as stated by  Rustam Badasyan, the Chairman of the State Revenue Committee of Armenia,  on November 4 during parliamentary hearings on the draft state budget for the country in 2024.

He noted that 90% of all incoming taxes are provided by large  businesses, therefore, accusations against the department about  pressure on small and medium-sized businesses are not true. Badasyan  emphasized that all tax administrations are focused on large  businesses, which often use special taxation systems to reduce tax  deductions. This is often part of a planned policy, but there are  also instances of aggressive policy. 

Meanwhile, Badasyan continued, the state aims to create the best  conditions for businesses.  The head of the State Revenue Committee  disagreed with the opinion that Armenia lacks a real economy,  emphasizing the importance of the construction sector. He questioned  whether this sector is part of the real economy or not. The State  Revenue Committee intends to generate an additional 142 billion drams  from the construction sector by 2025-2026. The new legislation will  require construction companies to calculate and pay VAT upon  receiving income from apartment sales, rather than waiting until  construction is completed and the building is registered in the  cadastre. Currently, apartments are typically sold much earlier. 

Thus, developers have an additional period of 1-2 years between  receiving income and paying taxes.  Despite the growth in  construction turnover in Armenia (13.2% in 2023), the VAT collected  from it is negative: (- 23.3 billion drams in 2023), because  companies can offset VAT when purchasing construction materials, and  only pay it on sales after some time. However, with the new  innovation, the deferred tax will eventually need to be paid.    According to the State Revenue Committee, developers will have to  pay 142 billion drams in 2025-2026.  The State Revenue Committee will  not only focus on collecting net taxes from the construction sector,  but also refund citizens income tax on mortgages in the amount of 84  billion drams next year. Since the beginning of 2024, this figure has  already reached 67 billion drams.