ARMENIAN COMPANIES TO RECEIVE A FRESH IMPETUS AS TAX CONCESSIONS TO BE LISTED AT STOCK EXCHANGE

ArmInfo
2009-01-15 17:38:00

ArmInfo. Armenian companies will receive a fresh impetus as tax
concessions to list their securities at the Armenian Exchange
(ArmEx). The relevant draft law was approved at the session of the
Armenian Government, Thursday.

According to Finance Minister Tigran Davtyan, it is envisaged to
introduce amendments to the laws on the value-added tax and profit
tax. It is envisaged that the companies listed at ArmEx will receive
compensation for the VAT paid on a number of services, including
legal, marketing, audit, book-keeping services and those related to
the stock exchange entry.

Furthermore, before 31 December 2012 the companies will get an
opportunity to reduce by 50% the amount of the profit tax during three
accounting listing years. The amount of the fast tax write-off is
not to exceed 300 mln AMD for each year. The tax concession will not
concern residents applying prices regulated by the state. In addition,
the companies will have to compensate for the written-off taxes if
over three years they suspend meeting the conditions required by the
law. "The matter is that the number of companies listed at ArmEx is
restricted, and actually, at present these companies have no stimulus
to enter the stock exchange, moreover, the processes connected with
the listing need quite big expenses",- Davtyan said.

Armenian Prime Minister Tigran Sarkisyan said that stimulation of the
companies to take part in the work of the stock exchange is a very
important factor. ‘It is known that the companies, which passed the
listing at the stock exchange, should work openly and give the true
information about their financial flows. We have to support as much as
we can any initiative in this direction. International experience shows
that the governmental supporting in this matter is effective. I would
like to recall that the government endorsed the joint programme with
NASDAQ-OMX about making reforms at the securities market. Creation
of the favorable conditions for listing at the stock exchange was
one of the points of the programme’,- Tigran Sarkisyan said.