Tax privileges envisaged for legal persons:


1. Pursuant to the Tax Code of the Republic of Armenia, 

 

import by taxpayers with status of economic operator authorized in the manner prescribed by legislation or by group of resident profit tax payers carrying out a program approved by the Government of the Republic of Armenia of goods from states not considered as member states of the Eurasian Economic Union into the territory of the Republic of Armenia, shall be exempt from the Value Added Tax, where those goods or the goods produced after reprocessing thereof are exported (including to member states of the Eurasian Economic Union) within 180 days following the day of import (sub-point 37 of point 2 of Article 64 of the Tax Code of the Republic of Armenia).

 

2.  Pursuant to the Law of the Republic of Armenia “On Profit Tax”,

 

(1) the amount of the profit tax of the resident carrying out a business plan approved upon the decision of the Government of the Republic of Armenia (except for the resident carrying out activities in the trade or financial sector, as well as the resident applying a profit tax rate set with respect to parts 1.1 and 1.2 of Article 33 of this Law) in the year of launch of the business plan and in the two reporting years following the year of launch, shall be deducted in the amount of 100 percent of the additional salary calculated in the course of the respective year with respect to the new jobs created within the scope of the business plan and of the payments equaled to the salary, but not more than 30 percent of the amount of the actual profit tax calculated for the respective reporting year (Article 39.3 of the Law of the Republic of Armenia “On Profit Tax”).

 

(2) the amount of the profit tax of the taxpayer carrying out an export program approved by the Government of the Republic of Armenia and of the taxpayer or resident taxpayer engaged in that program and part of the group of resident taxpayers of the Republic of Armenia, shall be calculated according to the rates presented below with respect to the taxable profit, where the group of taxpayers also meets all the following conditions:

  • the group of tax payers does not include taxpayers carrying out activities in any one of the fields of extraction and/or reprocessing of useful metallic fossils, processing and/or realization of precious stones, production and/or realization of jewelry, production and/or realization of precious metals, production and/or realization of excisable goods;
  • the aggregate of the customs value of goods exported by a group of taxpayers from the territory of the Republic of Armenia under the “Export” customs regime and/or the customs value of goods transported to member states of the Eurasian Economic Union, as well as the cost of services provided to non-resident organizations outside of the territory of the Republic of Armenia and/or the tasks carried out for non-resident organizations outside of the Republic of Armenia in the reporting year, makes up at least AMD 40 billion.  Moreover, in the course of the given reporting year for implementation of the export program, the group of taxpayers maintains the minimum amount of the customs value of goods exported from the territory of the Republic of Armenia under the “Export” customs regime and/or transported to member states of the Eurasian Economic Union set by the Government of the Republic of Armenia;
  • in the course of the reporting year, currency equivalent to at least AMD 40 billion has been entered into the bank accounts opened by taxpayers included in the group of taxpayers in the resident banks of the Republic of Armenia based on the aggregate calculation of the tasks relating to the export program;
  • in the course of the reporting year, taxpayers included in a group of taxpayers do not have incomes receivable as interest income from non-residents for supply of goods, performance of tasks or provision of services in the territory of the Republic of Armenia, except for borrowings.

With respect to the taxable profit, the amount of the profit tax of the taxpayer included in a group of taxpayers meeting all the aforementioned conditions shall be calculated:

 

(a) at a 5 percent interest rate, where the aggregate of the customs value of goods exported from the territory of the Republic of Armenia under the “Export” customs regime and/or goods transported to member states of the Eurasian Economic Union, services provided to non-resident organizations outside of the territory of the Republic of Armenia and/or tasks carried out for non-resident organizations outside of the territory of the Republic of Armenia in the course of the reporting year makes up at least AMD 40 billion;

(b) at a 2 percent interest rate, where the aggregate of the customs value of goods exported from the territory of the Republic of Armenia under the “Export” customs regime and/or goods transported to member states of the Eurasian Economic Union, services provided to non-resident organizations outside of the territory of the Republic of Armenia and/or tasks carried out for non-resident organizations outside of the territory of the Republic of Armenia in the course of the reporting year makes up at least AMD 50 billion (part 1.1 of Article 33 of the Law of the Republic of Armenia “On Profit Tax”).

 

(3)    Taxpayers involved in the production of agricultural products shall be exempt from payment of profit tax with respect to the income receivable from realization of agricultural products, as well as with respect to income receivable from the realization of main resources and other assets and other incomes, where the specific weight of the incomes in the gross income does not exceed ten percent (Article 36 of the Law of the Republic of Armenia “On Profit Tax”).

 

(4)    The amount of the profit tax of the taxpayer acting considered as exploiter for the activities carried out in the reporting year in the free economic zone created in the territory of the Republic of Armenia, shall be deducted by 100 percent for the period of exploitation of the free economic zone, as prescribed by law (Article 39.1 of the Law of the Republic of Armenia “On Profit Tax”).

 

(5)   Within the meaning of the Law of the Republic of Armenia “On Profit Tax”, incomes shall not be the incomes receivable from realization by residents certified as prescribed by the Law of the Republic of Armenia “On state support to the field of information technologies” within the validity period of the certificate.

 

At the same time, the expenses connected with reception of incomes receivable from realization of information technologies by residents certified as prescribed by the Law of the Republic of Armenia “On state support to the field of information technologies” within the validity period of the certificate, shall not be deemed to be expenses (the next to last paragraphs of Articles 8 and 11 of the Law of the Republic of Armenia “On Profit Tax”).

 

(6)   Taxpayers involved with the production of hand-made carpets shall be exempt from payment of the profit tax with respect to the income receivable from realization of hand-made carpets (Article 36.3 of the Law of the Republic of Armenia “On Profit Tax”).

 

3. Pursuant to the Law of the Republic of Armenia “On Value Added Tax”,

  • for persons deemed to be VAT payers, the term for payment of the sums of the VAT calculated with respect to imports of goods classified under FEACN codes 841920000, 841990150, 8422 (except for codes 842211000 and 842290100), 8426, 8429, 8430, 8435, 8441, 84431, 8452 (except for codes 845210 and 845290000), 8453, 8475, 8478, 8479, 85023100 or 870410 (including for imports from member states of the Eurasian Economic Union) to the State Budget shall be delayed, except for the following prescribed cases:

(1) where the customs value of imported goods classified under the specified codes is less than AMD 70 million – for a term of one year following the day of declaration;

(2) where the customs value of imported goods classified under the specified codes makes up AMD 70 million and more – for a term of two years following the day of declaration;

(3) where the customs value of imported goods classified under the specified codes exceeds AMD 300 million – for a term of three years following the day of declaration.

The term for payment of the sums of the VAT calculated with respect to goods classified under FEACN codes 250510, 250900, 251820, 2836, 3901, 3902, 3903, 3904, 3905 and 3906 to the State Budget shall be delayed for a term of one year following the day of declaration.

 

Within the scope of investment programs of organizations and individual entrepreneurs selected upon the decision of the Government of the Republic of Armenia, besides the aforementioned goods, in case of imports of other goods, the term for payment of the sums of the VAT calculated in the prescribed manner shall be delayed for a three-year period. The procedure for selection of organizations and individual entrepreneurs shall be established by the Government of the Republic of Armenia (Article 61 of the Law of the Republic of Armenia “On Value Added Tax”).

  • VAT payers shall be exempt from the VAT, particularly with respect to the following transactions and operations:

(1) realization of school writing books and notebooks, coloring books, textbooks and children’s books and educational books, realization of scientific and educational books published by specialized scientific organizations of universities and the National Academy of Sciences of the Republic of Armenia;

(2) realization of technologies and parts classified under FEACN codes 8432, 8433, 8434, 8436 and 8701, fertilizers classified under the codes of 31 groups of goods, pesticides, agricultural herbs and the seeds and seedlings of perennial plantations, as well as goods classified under FEACN codes 0106 41 000, 0106 90 00 90, 5305 00 000 0 and 9406 00 310 0;

(3) insurance and re-insurance operations, including services provided by insurance brokers and agents;

(4) main financial operations and services carried out and provided by banks, specialized participants in the securities market, payment and settlement organizations and credit organizations;

(5) Within the meaning of the Law of the Republic of Armenia “On securitization of assets and asset-backed securities”, the sale by an initiator of assets to the securitization fund or seller, the sale by a seller of assets to the securitization fund, as well as buyback by an initiator of assets from the securitization fund or exchange of assets with the securitization fund in the cases prescribed by the Law of the Republic of Armenia “On securitization of assets and asset-backed securities”;

(6) realization of medical equipment and accessories, medical aid and medical services (including preventive and diagnostic services), goods made and services provided by patients for treatment within prophylactic institutions and organizations and within the scope of that medical aid;

(7) supply of goods and provision of services at the expense of funds for preparation of credit or grant programs of international financial organizations, in the manner prescribed by the Government of the Republic of Armenia;

(8) gratuitous consumption by non-governmental (including charitable) and religious organizations;

(9) realization of precious and semi-precious stones specified in the list established by the Government of the Republic of Armenia;

(10) realization of precious metals and semi-finished jewels made from precious metals (FEACN codes-7106, 7108, 7109, 7110, 7113, 7115);

(11) supply of goods and provision of services by foreign states, international inter-governmental (interstate) organizations, international and foreign non-governmental (including charitable), religious and other similar organizations and individual benefactors and those of the Republic of Armenia within the scope of humanitarian aid and charitable programs (activities), as well as supply of goods and provision of services by VAT payers of the Republic of Armenia directly linked to the implementation of similar programs and goods and services of great significance for those programs.

In case of not being directly specified by the legislation of the Republic of Armenia (including by the international treaties of the Republic of Armenia), the distinction of humanitarian aid and charitable programs (activities), as well as the scopes of goods and services exempt from VAT shall be determined by the state administration body authorized by the Government of the Republic of Armenia;

(12) cultural assets being imported into the territory of the Republic of Armenia;

(13) realization of hand-made carpets (code according to FEACN 570110, FEACN 570210) produced by the immediate manufacturer in the Republic of Armenia;

(14) realization of cigarettes by persons who are not producers of cigarettes and/or persons who do not import cigarettes;

(15) organizing of activities of casinos;.

(16) import and/or alienation of diesel fuel;

(17) exploitation of gambling machines;

(18) organizing of gambling on the Internet;

(19) provision of services to the organizer of a free economic zone and exploiter of a free economic zone, supply of goods in the premises of the free economic zone (Article 15 of the Law of the Republic of Armenia “On Value Added Tax”).

 

Law of the Republic of Armenia “On approving the list of non-excisable goods imported by organizations and individual entrepreneurs, the import of which is exempt from Value Added Tax”, which establishes the list of non-excisable goods imported by organizations and individual entrepreneurs, the Value Added Tax of which is not calculated and levied by customs authorities.

 

4. Pursuant to the Law of the Republic of Armenia “On Excise Tax”,

 

The following shall not be excisable:

 

(a) alienation (realization) of excisable goods exported from the Republic of Armenia (except for goods exported to member states of the Eurasian Economic Union), where there is a document prescribed by sub-point (b) of point 1 of Article 9 of the Law of the Republic of Armenia “On Excise Tax”;

(b) excisable goods imported and exported under customs regimes established in the manner laid down within the unified customs legislation of the Eurasian Economic Union and within the customs legislation of the Republic of Armenia, which differ from the "release for domestic consumption" customs regime;

(c) imports and alienation of excisable goods that have been confiscated, transferred to the State due to being declared as ownerless and transferred to the State under the right of inheritance, in the manner defined by the legislation;

(d) excisable goods being imported into the Republic of Armenia by natural persons not considered as individual entrepreneurs, the import of which is not deemed to be import for entrepreneurial activity, pursuant to the Law of the Republic of Armenia “On customs regulation”;

(e) alienation of non-bottled brandy with 40 percent and more spirit concentration to other persons producing brandy;

(f) supply of excisable goods to the organizer of a duty-free store operating at an airport.

Other excise tax privileges may be established by the Law of the Republic of Armenia “On Excise Tax” (Article 6 of the Law of the Republic of Armenia “On Excise Tax”).

 

Privileges provided for natural persons (including persons considered as individual entrepreneurs)

 

5. Pursuant to the Law of the Republic of Armenia “On Income Tax”,

  1. While determining the taxable object, the gross income of a taxpayer involved in agricultural production shall, as prescribed by legislation, be deducted in the amount of the income receivable from realization of agricultural products, as well as in the amount of income received from other activities, where the specific weight of the latter does not exceed ten percent in the aggregate of incomes receivable from agricultural and other activities (Article 8 of the Law of the Republic of Armenia “On Income Tax”).
  2. Within the meaning of the Law of the Republic of Armenia “On Income Tax”, income receivable from realization of hand-made carpets of taxpayers involved in the production of hand-made carpets shall particularly be deemed to be deductible incomes (sub-point 31 of Article 6 of the Law of the Republic of Armenia “On Income Tax”).
  3. Within the meaning of the Law of the Republic of Armenia “On Income Tax”, incomes receivable from the realization of information technologies by taxpayers certified as prescribed by the Law of the Republic of Armenia “On state support to the field of information technologies” within the validity period of the certificate shall particularly be deemed to be deductible incomes.

At the same time, the expenses connected with incomes receivable from the realization of information technologies by taxpayers certified as prescribed by the Law of the Republic of Armenia “On state support to the field of information technologies” within the validity period of the certificate shall not be deemed to be expense (sub-point 35 of Article 6 and part 3 of Article 17 of the Law of the Republic of Armenia “On Income Tax”).

 

The tax agent certified as prescribed by the Law of the Republic of Armenia “On state support to the field of information technologies” shall calculate the income tax from the salary paid to employees and incomes equaled thereto within the validity period of the certificate at a 10 percent interest rate (point 1.1 of part 1 of Article 10 of the Law of the Republic of Armenia “On Income Tax”).

 

Events calendar

 
 

Congratulations

 
 

Speeches

 
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20.07.2016  |  Congratulations

TO MEMBERS OF THE BOARD OF THE

ARMENIAN YOUTH ASSOCIATION OF CALIFORNIA


Dear compatriots,


I cordially congratulate the Armenian Youth Association of California on its 25th anniversary.

15.07.2016  |  Speeches

On July 11, within the framework of the first “Armenia. Create Together” youth forum for students and alumni of the world’s top universities (organized by the RA Ministry of Diaspora, in association with the Armenian General Benevolent Union, Luys Foundation and Ayb Foundation), Vardanants Medical Center hosted the meeting of the telemedicine group of the “Medicine and Health” Atelier formed under the auspices of Luys Foundation with young students and professionals from different countries. During the meeting, doctor of the Center for Plastic Rehabilitative Surgery and Microsurgery of Clinical Hospital #1 of Yerevan State Medical University after Mkhitar Heratsi, candidate of medical sciences, plastic surgeon Gevorg Yaghjyan gave his opening remarks.