ArmInfo. The high technology sector in Armenia will receive state support. The National Assembly discussed amendments to the law "On state support to the high technology sector" and to the Tax Code of the Republic of Armenia during the plenary session on November 14 in the first reading.
In his speech, Mkhitar Hayrapetyan, the Minister of High-Tech Industry of the Republic of Armenia, noted that the government has introduced several initiatives over the years to offer benefits to IT companies. One such program, which is in effect until the end of this year, provides small companies with up to 30 employees a tax benefit, which reduces the income tax rate from 20% to 10%. Additionally, the project to return 50% of income tax to these companies will be extended until the end of the year. As the implementation period of these programs is coming to a close, discussions were held to explore options for institutional development of the information and high technology industry. Following these discussions, a decision was made to develop a package of laws focused on fostering the long-term development of the sector, thereby securing its sustainable development growth.
The new package of initiatives aims to extend the assistance program for a period of 7 years, until 2032. One areas focus is attracting new employees to the sector. Start-up companies with up to 30 employees will receive a 100% income tax refund, allowing them to create new jobs in partnership with universities. Companies with 30 employees or more, will receive a 50% income tax refund. Another area of focus is labor migrants. Companies that employ them in the IT sector will also receive a 50% income tax refund. This initiative is aimed at attracting qualified personnel from global markets.
Another benefit is available to companies that provide training for specialists through tailored educational programs. Small start-ups will receive a 50% income tax refund and large companies - 25%. Companies engaged in scientific research activities, will see their income tax refund increase from 10% to 20%.
