RA PARLIAMENT RATIFIED FRAMEWORK AGREEMENT BETWEEN ARMENIA AND EUROPEAN COMMISSION

ArmInfo Agency, Armenia
Oct 4 2007

ArmInfo. Today, the Armenian Parliament ratified a framework agreement
between Armenia and the European Commission.

As RA deputy Finance and Economy Minister David Avetisyan told RA
parliamentarians, the agreement is called to replace the agreement on
the order of applying the financial memorandum, signed on February
3, 1994. Basically, all the provisions of this agreement have been
preserved in the new document. The agreement establishes the tax and
customs privileges, determines the allowances for operations during
the currency import. The document determines that, according to the
agreement, all the contractors are excused from tax liabilities during
financing of EU programmes. Privileges with respect to the physical
persons, engaged in EU programmes, have been also determined.

In particular, the matter concerns their property. However, unlike
the agreement, 1994, the new one differs by the fact that an income
tax is applied with respect to the permanent residents. It means
that RA citizens have to pay this kind of tax. The agreement is of
strategic nature, in view of which its application terms have not
been established. EU will send 7 mln Euro in 2007 for implementation
of different programmes in Armenia. As for 2008, the republic will
receive means by separate tranches. Ratification of the document will
allow to activate the cooperation with the European Union.