Friday, January 24 2025 10:53
Naira Badalian

RA State Revenue Committee explains compensation for social expenses 

RA State Revenue Committee explains compensation for social expenses 

ArmInfo. What are social expenses and how to get compensation?:  the State Revenue Committee  of Armenia explains.

1. Who can get compensation for social expenses?

If you are a resident of the Republic of Armenia and have filed or  are required to file a tax return for the reporting year 2024 in  2025, you can take advantage of the opportunity to reimburse social  expenses from income tax. You can receive compensation for social  expenses incurred by you and your family members.  Family members  include the spouse, parents, and children (adopters and adopted  children) of the person filing the declaration.

2. In what cases can you count on compensation?

If you are required to file a tax return for 2024 in 2025, you can  benefit from social security reimbursement only if you purchased a  health insurance package for yourself or a family member from an  insurance company operating in Armenia, or you paid for tuition at an  educational institution implementing an educational program in the  Republic of Armenia during 2024.

3. Which institutions offer students the opportunity to receive  compensation for social expenses?

You can receive compensation for education expenses if the  educational expenses were incurred within the framework of  pre-school, primary, basic, secondary, preparatory (vocational),  secondary, higher and postgraduate vocational education programs.  Remember that you need to request an invoice from the educational  institution for the expenses incurred in connection with tuition  fees.

For example, if your child studies in a fee-based kindergarten,  school or university, then in this case you can use the opportunity  to receive compensation for social expenses, but if the payment was  made for tuition at an art, music or sports school or for  participation in private courses, then these expenses are not subject  to compensation.

4. Can you receive compensation if you used any medical services?

No, the cost of individual medical services (for example, medical  examination, surgery and other similar services) are not considered  social expenses, therefore they are not subject to compensation.  Social compensation for health care expenses is provided only if you  purchased a health insurance package from an insurance company  operating in the Republic of Armenia in 2024.

5. What is the amount of compensation?

The maximum amount of social expenses for healthcare is 50,000 drams  per year, and the maximum amount of expenses for education is 100,000  drams per year. Remember that the maximum amount of social expenses  incurred by you and your family members in all areas is 100,000 drams  per year. It is also important to know that you can use the  reimbursement of social expenses in both areas at the same time, but  their total amount cannot exceed 100,000 drams.

6. How to use the compensation?

To receive compensation, you must request an invoice from the  insurance company or educational institution, presenting an identity  document and the state services number. And if you are the declarant,  but make social expenses for a member of your family, you must also  provide an identity card and the state registration certificate  number of the family member, as well as documents confirming the fact  of belonging to the family (in the case of a spouse - a marriage  certificate, in the case of a parent for a child - a birth  certificate, in the case of an adoptive parent or adopted child - a  document confirming the relevant basis for adoption).

7. Do I need to submit an application to receive compensation?

If you have already submitted a declaration and have been issued a  payment document indicating your public service number as a payer of  social expenses, it will automatically be reflected in the section of the income declaration system at  https://self-portal.taxservice.am/ about how many social expenses you  have made and what the compensation amount is. And to receive  compensation, you simply need to submit an application through the  same system to receive the compensation amount from a joint account.  The application is available in the section of  the system. An individual fills out an application, indicating the  bank account number and the amount to be reimbursed. The application  must be signed electronically and submitted to the State Revenue  Committee through the same system.

8. Do I need to personally bring the payment document or will it be  automatically reflected in the declaration?

The payment document is automatically reflected in the section of the declaration system. Here the user gets  access to information about the document, as well as to the PDF  version of the document. Information on the amount of compensation  for social expenses is also automatically entered into the relevant  section of the declaration.

9. Can you, as a declarant, receive compensation if your child is a  foreign citizen?

Yes, you can use the opportunity to compensate social expenses even  if your child, for whom you have made social expenses, is not a  citizen of the Republic of Armenia.

10. Can parents who have applied for citizenship receive compensation  for tuition fees for the same student?

Yes, both the mother and the father of a student who is a declarant  can use the opportunity to compensate social expenses incurred by the  same person. For example, if the mother paid for tuition for one  semester of the academic year, and the father for another semester.  In this case, it is important that the payment document, as a social  expense, is issued indicating the state social security number of  each person separately.

11. If you paid tuition fees at two different educational  institutions in 2024, can you receive a refund in both cases?

If you are a declarant and paid tuition fees at different educational  institutions and for different family members during 2024, you can  receive compensation in both cases. However, it should be noted that  the maximum compensation amount cannot exceed 100,000 drams. Thus,  both the mother and father of a student can take advantage of the  opportunity to compensate for social expenses incurred for the same  person. For example, if the mother paid for tuition for one semester  of the academic year, and the father for another semester. In this  case, it is important that the payment document, as a social expense,  be issued indicating the state service number of each person  separately.

12. What to do if you are a declarant, but you do not have a payment  document for social expenses incurred in 2024?

If you purchased a health insurance package or paid for education in  2024, but do not have a payment document, you can request the  relevant payment document from the insurance company or educational  institution to confirm social expenses and receive compensation. The  service provider is obliged to provide the document even if you made  social expenses in 2024.

13. If a citizen filed a declaration for 2023 and made social  expenses but did not receive compensation, can he/she file an  application in 2025 and receive compensation for social expenses?

Yes, if an individual was required to file a declaration for 2023,  he/she can request a calculation document from the relevant insurance  company or educational institution for 2023, and then file an amended  declaration, after which he/she can receive compensation.

14. If the citizen filing the declaration is a recipient of a social  package, can he/she count on compensation for health care expenses?

If you are a recipient of a social package, you cannot personally  receive reimbursement for social health care expenses; instead, you  can only receive reimbursement if you purchase an insurance package  for family members.

15. Can a taxpayer who receives a mortgage income tax refund receive  compensation?

If a citizen filing a declaration has used the opportunity to refund  income tax on a mortgage loan or tuition fees, dividends, then  reimbursement of social expenses is carried out if there is a  positive difference between the income tax amounts calculated and  (or) paid (including by a tax agent) for the reporting year and the  income tax amounts returned to an individual in cases provided for by  the Code.

16. If a health insurance package for an employee was purchased by  his employer, can the declarant receive compensation?

No, the opportunity to reimburse social expenses can be used by the  person who is the declarant who incurred these expenses.

Thus, if the expenses for purchasing a health insurance package were  incurred by another person (including the employer), then the person  who is the declarant cannot use the opportunity to reimburse social  expenses for it.

17. Is it possible to receive compensation if you are not a  declarant, but have submitted a calculation- declaration for renting  out real estate?

No, only citizens of the RA who are residents of the Republic of  Armenia and are considered declarants can take advantage of the  opportunity to compensate social expenses (the full list is here:   https://src.am/am/getNews/833).  

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