DRAFT LAW ON INVESTMENTS TO BE SUBMITTED TO NA BY END OF THIS YEAR

YEREVAN, APRIL 13, NOYAN TAPAN. It is envisaged that the draft law on
investments will be sunmitted to the RA National Assembly by the end
of the year. Deputy Minister of Trade and Economic Development Tigran
Davtian stated at the April 12 press conference that the sphere is
currently regulated by the law on foreign investments which was
adopted in 1994 and has created the most favorable conditions for
foreign investors with the aim of encouraging a steady flow of foreign
capital. The deputy minister indicated that the draft law envisages
establishing equal conditions for foreign and local investors without
any tax concessions. T. Davtian noted that local investments now make
quite a considerable amount, and discriminatory practices with respect
to investors should be abolished. Addressing the Law on Profit Tax,
T. Davtian noted that the tax concession stipulated by the law,
according to which foreign investors are exempt from profit tax in
case of making investments of over 500 mln drams (about 1.1 mln USD),
will be in effect until 2007. By that time the transitional period
will have been over in Armenia, with the economy functioning
naturally. It was stated that although the World Bank assessed Armenia
as a “low average income country”, the work in international
organizations will continue to improve the country’s status. In an
effort to make this work more efficient, the RA government made a
decision for Armenia to have its representatives in Europe, Russia,
the US and the World Trade Organization. In addition, negotiations
with the European Union are underway with the purpose of recognizing
Armenia as a country with a market economy.