It is proposed to introduce a system of universal declaration of income of individuals in our country in a phased manner during 2023-2025. The package of drafts on Making Amendments and Addenda to the RA Tax Code and on Making Amendment and Addendum to the RA Code on Administrative Offenses was debated in the second reading at the extraordinary sitting of the NA Standing Committee on Economic Affairs on December 22.
According to the Deputy Minister of Finance Arman Poghosyan, the RA citizens holding state service, community service and public positions should submit a declaration for the reporting year of 2023.
The citizens considered as employees who received taxable income within the framework of civil law contracts during the year will submit a declaration for the reporting year of 2024.
All citizens considered as RA residents will submit a declaration for the reporting year of 2025 and subsequent years.
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The Deputy Minister stated that the amendments presented by the Government after the first reading are based on the oral and written recommendations made during a number of working discussions and parliamentary hearings. Certain provisions were clarified. Notaries and all citizens who are considered as RA residents, as well as those receiving income from abroad, will submit a declaration only in the 3rd stage of the system implementation. Minors will not submit a declaration at all.
Arman Poghosyan noted that as a result of amendments, a liability warning institute will be introduced. The amount of the fine for not filling out a declaration has been reduced: it will be 50 thousand AMD. The fine for those who continuously commit violations is 100.000 AMD. According to him, expenditures and property will not be declared, only incomes are subject to declaration. With the new amendment, a declaration about the reporting year should be submitted not before April 20, but before May 1.
According to the Deputy Minister of Finance, all citizens will be properly notified to submit a declaration. “Without awareness, no one will be held accountable,” Arman Poghosyan said.
Answering the question of the Committee member Hovik Aghazaryan about the luxury tax, Arman Poghosyan noted that this type of tax operates in many countries, but due to the lack of toolkits, it is not applied in our country.
The Deputy Chair of the NA Standing Committee on Economic Affairs Babken Tunyan, thanking all the sides that participated in the debates of the issue, stated that a huge amount of legislative work was done in a short period of time. He emphasized the importance of reducing the amount of responsibility.
According to Babken Tunyan, the promotion and development of human capital is one of the goals of the introduction of the declaration system.
The Committee members also debated in the second reading the package of the same name on Making Amendments and Addenda to the RA Tax Code and the related drafts, the adoption of which is due to the increase in the efficiency of the administration carried out by the tax authority.
Regulations regarding the calculation and payment of VAT from the electronic trading platform will also be established for the goods purchased from the EEU member states through the electronic trading platform by the individual entrepreneurs or individuals who are not considered notaries and imported into the territory of the Republic of Armenia.
According to the package of drafts, it is proposed to supplement the Law on State Duty with a new content.
The Deputy Chairman of the State Revenue Committee Artur Manukyan noted that the income tax charged in case of alienation of a car will be replaced by a state duty, reserving it for the RA Police, which will have a positive impact on the society and will simplify the process of car alienation within 365 days.
It was noted that the Government presented technical and editorial recommendations after the first reading, which were accepted.
The legislative initiatives were endorsed.
National Assembly of the Republic of Armenia
