Armenia`s Ministry of Finance harmonizing laws with premier`s  statements 

ArmInfo.The Armenian authorities are expanding the range of social expenses on healthcare and education reimbursed within the framework of the general declaration of income of individuals. Thus, the Ministry of Finance of Armenia, which develops the country's tax policy, has adjusted the law to the wording previously voiced by Prime Minister Nikol Pashinyan. The corresponding resolution was adopted on February 13 at a meeting of the Cabinet of Ministers.

Citizens of the Republic of Armenia who are residents of the RA and  submit an annual income tax return can take advantage of the  opportunity to reimburse social expenses from the income tax amount  for social expenses incurred both for themselves and for family  members (spouse, parents, and children).

According to the current procedure, declarants can take advantage of  the reimbursement of social expenses if in 2024 they purchased a  health insurance package from an insurance company operating in  Armenia or paid for tuition at an educational institution operating  in Armenia. Education expenses can be incurred under pre-school,  primary, basic, secondary, preparatory (vocational), intermediate,  higher and postgraduate vocational education programs. It will be  possible to receive compensation in both directions simultaneously if  their total amount does not exceed 100,000 drams.

However, at a press conference on January 31, Prime Minister Nikol  Pashinyan announced that the social tax deduction will be provided  for expenses on kindergartens, dental services not covered by  insurance, sports sections, including football, basketball, wrestling  and boxing, as well as creative circles such as dancing and drawing.

Late in the evening of the same day, the State Revenue Committee had  to issue a clarification, stating that <there is no contradiction  between the RA Prime Minister's statement on receiving compensation  for social expenses after filling out the declaration and the  corresponding explanation of the SRC, since all notifications of the  State Revenue Committee refer to the current regulation, and the  Prime Minister presented the changes expected in the near future>.

In particular, the draft presented today by Finance Minister Vahe  Hovhannisyan proposes to establish that social expenses related to  healthcare also include expenses on the purchase of dental services  in the RA in the reporting years of 2024 and 2025. It is proposed to  establish that the right to reimbursement of this type of social  expenses may also be exercised by beneficiaries of the social  package.

Social expenses on education will also include expenses on the  purchase of educational services provided through music, art, fine  arts, dance schools, extracurricular organizations, centers,  children's and youth sports schools and other extracurricular  programs, as well as non-formal education programs guaranteed by the  authorized state body in the field of education, and expenses on the  rental of textbooks within the framework of secondary (general,  special, specialized) educational programs.

In addition, the draft proposes to establish that social expenses  incurred in the above areas during the reporting year of 2024 will  also be reimbursed. The amount of compensation for the rental of  textbooks for each student is 3,000 drams per year. The fact of the  guarantee of educational programs will be taken into account on the  date of filing a declaration for the reporting year of 2024, and for  subsequent reporting years - on the date of issuance of the  settlement document by the person providing educational services.

The right to compensation for social expenses arises if social  expenses were incurred in non-cash form, with the exception of  expenses incurred for the purpose of renting textbooks, for which the  fact of payment is not taken into account.