ArmInfo.. In Armenia, the threshold for accounts receivable of organizations considered hopeless will be raised from 100 thousand drams to 300 thousand drams.
At the meeting on November 6, the Committee on Economic Affairs of the National Assembly of the Republic of Armenia issued a positive opinion on the amendments to the Tax Code of the Republic of Armenia submitted by the Government of the Republic of Armenia. As the Minister of Economy of the Republic of Armenia Gevork Papoyan noted in his speech, organizations often make mistakes when accounting for accounts receivable in income tax accounting.
According to the current regulation, to determine the taxable base of the taxpayer, deductions for writing off bad debts are deducted from the gross income. Accounts receivable, the total amount of which exceeds 100 thousand drams, are considered hopeless from the date of entry into force of the court decision on satisfying or refusing to satisfy the claim for confiscation of the amount of accounts receivable.
The Minister reported that according to official statistics, in 2022, the courts of general jurisdiction of Armenia accepted 172,476 civil cases for proceedings, of which 159,683 or 93% of all cases accepted concerned the confiscation of funds. Large business entities often have the resources to reduce legal costs, but the problem of accounts receivable reduces this opportunity.
As a result of negotiations with audit companies, it becomes clear that, along with the income tax, large companies have problems with paying off bad debts. Small companies, on the contrary, do not have the resources to pay legal costs, which leads to an increase in cases related to the administration of cases related to bad debts. In this regard, a provision is being introduced into the Tax Code to increase the threshold of accounts receivable. The Minister noted that the current law entered into force on December 31, 2002 and has been in force for about 22 years. During the specified period, inflation was 113.74%, and thus, 100 thousand drams today already amount to 224 thousand drams.
