ArmInfo. With proper documentation of expenses, the tax burden on jewelry retailers will not only not increase, but, on the contrary, will decrease. This statement was made by the deputy head of the parliamentary standing committee on economic issues, MP of the ruling faction of Armenia "Civil Contract" Babken Tunyan, responding to the protests of the workers of the "Gold Market" shopping center, who are against the double increase in the turnover tax rate and the corresponding entry by the former assistant to the Prime Minister Nairi Sargsyan.
The turnover tax (replaces VAT and income tax) is paid by business entities whose annual turnover does not exceed 115 million drams (since January 1, 2020, Armenia returned to a non-taxable annual turnover of up to 115 million drams). Previously, they paid 5% of the turnover of commercial activities and 3.5% of the turnover of production. However, from January 2025, the authorities doubled the turnover tax rates set for core activities, with the possibility of reducing the tax payable through documented expenses.
: In his public speeches, the Prime Minister orders legislative changes to prevent the sale of undocumented goods. This is certainly a very correct instruction, but its improper implementation has become catastrophic for business>, Nairi Sargsyan wrote earlier. According to him, a gold trader buys a used gold jewelry from a citizen at a scrap price of $ 50. He melts it down, gets a new jewelry and sells it for $ 54. Previously, he paid a sales tax of 5% on this sale - $ 2.7, and received a net profit of $ 1.3. The tax was high, so they hid the turnover.
Babken Tunyan admits that since 2025, the turnover tax rate for representatives of the sector has doubled - from 5% to 10%. At the same time, he notes that if expenses are documented (purchase of gold, rent of premises, etc.), then the actual tax rate can be up to 1%, instead of the previous 1.5%.
The question arises: if this is so, then why do they not buy gold legally and with documents? They say that this is unprofitable, because the purchase entails income tax.
This is not true. According to subparagraph 39 of paragraph 1 of Article 147 of the Tax Code, for the purposes of determining the tax base, income from the alienation of gold and silver to a tax agent carrying out transactions on the purchase and sale of precious metals, products made of precious metals, metals or precious stones through counters or points of sale at places of trade (gold markets) is considered deductible income.
Simply put, if an economic entity in the gold market purchases gold from individuals, then income tax is not charged on the latter. Considering all this, there should be no complaints among business entities operating within the legal framework and duly reporting on their expenses and income>, - the deputy notes.
In this regard, Babken Tunyan plans to hold a discussion on this issue in the near future, to which both Nairi Sargsyan and other interested parties will be invited.
: So that there are no surprises or novelties after the law comes into force>, the deputy of the ruling faction summed up.
