The Executive proposes to revoke the privilege of the additional salary and deducting the amount of payments equal to it from the amount of profit tax calculated by the resident profit taxpayers implementing a business project in terms of new jobs created within the project.
According to the RA Deputy Minister of Finance Arman Poghosyan, during the 10 years since the above-mentioned privilege was established, it was not widely used among the entities.
According to Arman Poghosyan, during the first reading of the draft, the Executive had given business circles two months to find out their interest in the issue. However, neither the Government nor the National Assembly received new applications during that time.
The deputy Hovik Aghazaryan inquired how much money was not entered into the state budget as a result of the use of the privileges. In response, the rapporteur stated that it is around 6% of the gross domestic product (GDP). “The Government always keeps the existing tax privileges in the center of attention, because each of them is an uncollected and unspent tax,” the Deputy Minister underlined.
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Two editorial amendments were made from the first to the second reading.
The amendments to the RA Tax Code were debated in the second reading at the sitting of the Standing Committee on Economic Affairs on February 21. It was moderated by the Deputy Chair of the Committee Babken Tunyan.
The revised version of the draft was approved by the Committee.
National Assembly of the Republic of Armenia
