Yerevan May 23
Alexander Avanesov. Armenia and Israel will no longer apply double taxation to business entities of the parties. On May 23, the Armenian Parliament approved a bill on ratification of the convention between the governments of Armenia and Israel on avoidance of double taxation on property and income.
According to RA Deputy Minister of Finance Armen Hayrapetyan, Armenia has similar agreements (already signed and already in force) with 46 countries already. Today such agreements with Israel and Denmark have been signed, but so far not ratified. During the current year, procedures will be completed with three countries: Kyrgyzstan, Uzbekistan, and the Seychelles. Until the end of the year, the Ministry of Finance also plans to conclude negotiations with four more countries. Armen Hayrapetyan stressed that the trade turnover between Armenia and Israel is insignificant and amounts to about $ 9 million. In 2017, the export of Armenian goods to Israel amounted to $ 3.7 million, having decreased by $ 300 thousand in comparison with 2016. Import of Israeli goods to Armenia in 2017 was equal to $ 7.4 million, which is less than the indicator of 2016 for $ 2.2 million. In the export, the share of Israel is 0.2%. In 2015-2016 Israeli investments in Armenia totaled 1.3 billion AMD. Conclusion of the agreement will increase the volume of bilateral trade.
The purpose of these agreements is to eliminate double taxation in foreign trade between two states, to prevent tax discrimination against economic entities of the parties, to exclude double taxation on property and income, and to create a predictable and stable tax environment for business. The program of the Armenian government for 2017-2022 as part of a consistent increase in the potential for economic growth and ensuring macroeconomic stability, promoting interstate trade and cross-border operations in 2019- 2022. plans to conclude similar agreements with at least 5 countries.