IT IS ENVISAGED TO EXCLUDE USE OF SIMPLIFIED TAX IN MAIN BRANCHES OF ECONOMY

Noyan Tapan
Jun 28, 2007

YEREVAN, JUNE 28, NOYAN TAPAN. At the June 28 special session, the
RA National Assembly finished the discussion (in first reading)
of the bill on making amendments and additions to the RA Law on
Simplified Tax.

The government proposes excluding the use of simplified tax in
the main branches of economy and to impose this tax only on small
businessmen engaged in retail trade or providing personal services to
the population. Besides, it is proposed that the scope of activities
liable to simplified tax should be considerably reduced: commercial
organizations and private businessmen can be considered simplified
tax payers only in case of being engaged in one type of activity at
one place, and the simplified taxation regime cannot be combined with
the general taxation regime or the refime of taxation with fixed
payments. Simplified tax payers will not be allowed to have any
representative offices or branches and to import goods into Armenia.

According to the government, the purpose of the bill is to promote
small business by creating favorable conditions for it. By the
government’s data, in 2002-2006, the number of simplified tax payers
grew 13.1fold to 26.025 thousand, whereas the simplified tax revenues
grew only 2.1fold.