Update-2025-January-en

In Part 1 of Article 43 of the Code, after the words “taxpayer’s obligation”, add the words “the amounts of VAT and (or) excise tax subject to compensation from the state budget, reflected in excess of the amount specified in the unified calculation of VAT and excise tax, in the amount of the amounts shown in excess”.

Article 43. Tax liability:

Old version.

A tax liability is considered to be the taxpayer's
obligation to pay any type of tax and/or payment,
as well as penalties, fines, as well as compensation
for damage, calculated for violating the provisions
of the Code and/or laws of the Republic of Armenia
on payments.

New version.

A tax liability is considered to be the taxpayer's
obligation to pay any type of tax and (or) payment, as well as the amounts of penalties, fines, as well as
compensation for damage, calculated for violating the provisions of the Code and (or) laws of the Republic of Armenia on payments, as well as the amounts of VAT and (or) excise tax subject to compensation from the state budget, reflected in excess of the amount specified in the unified calculation of VAT and excise tax, in the amount
of the amounts shown in excess, except for the cases
specified in part 2 of this Article.

To add to Article 53 of the Code a section 12 with the following content:

Article 53. Tax calculation submission:

Old version.

New version.

12. Tax calculations for excise tax cannot be submitted in cases (in case of submitting a joint calculation for VAT and excise tax, this calculation is not taken into account for excise tax) when the tax calculation refers to the reporting period that has already been examined by the tax authority for the purpose of examining the justification of the excise tax refundable amounts subject to entry into the joint account.

In Article 74 of the Code, Part 2 shall be amended as follows:

Article 74. Procedure for calculating the amount of value added tax subject to compensation from the state budget

Old version.

2. The refundable amount of VAT arising from the
results of the activities of the reporting period shall
be directed to the repayment of the amounts of
VAT payable to the state budget arising from the
unified calculations of VAT and excise tax
resulting from the results of the activities of the
reporting periods, as well as additional amounts of
VAT recorded as a result of an inspection or study
carried out by the tax authority in accordance with
the procedure established by Section 17 of the
Code. If, after the end of each reporting month, as
of the day following the day of submission of the unified calculation of VAT and excise tax for that
reporting period, the taxpayer has a refundable
amount of VAT, then this amount shall be credited
to the unified account based on the taxpayer's
written application, in accordance with the
simplified procedure established by Part 10 of
Article 348 of the Code or if justified by the results
of an inspection or study carried out in accordance
with the procedure established by Section 17 of the
Code.

New version.

2. The refundable amount of VAT arising from the results of the activities of the reporting period shall be directed, in accordance with Part 3 of this Article, to the repayment of the amounts of VAT payable to the state budget arising from the joint calculations of VAT and excise tax arising from the results of the activities of any reporting period, or shall be credited to the joint account in accordance with Part 4 or 5 of this Article.

Fill in parts 3-5 with the following content:

Old version.

New version.

«3. If, as of the date of submission of the unified VAT
and excise tax calculation (including the adjusted one) for a given reporting period, the taxpayer has a refundable VAT amount, then this amount may be used to repay the VAT amounts payable to the state budget, resulting from the unified VAT and excise tax calculations for a given reporting period, on the day of the VAT payment deadline for the given reporting period or until the day preceding the VAT payment deadline for the given reporting period, by the taxpayer using the relevant software instruction.

4. If, as a result of the activities of each reporting period, a VAT refundable amount arises from the unified calculation of VAT and excise tax submitted for a given reporting period, then, if this amount is not considered risky in accordance with the criteria established by the Government, it shall be credited to the unified account by the day preceding the deadline for VAT payment for a given reporting period, if the taxpayer has applied the relevant program instruction, or on the day of the deadline for VAT payment for a given reporting period. If, after the deadline for submitting the unified calculation of VAT and excise tax for any reporting period, a VAT refundable amount arises from the unified calculation of VAT and excise tax (including adjusted ones), then, if this amount is not considered risky in accordance with the criteria established by the Government, it shall be credited to the unified account on the day of submission of the unified calculation (including adjusted ones).

5. The refundable VAT amounts considered risky in
accordance with the criteria established by the Government, resulting from the unified calculation of VAT and excise tax presented for the given reporting period based on the results of the activities of each reporting period, shall be credited to the unified account upon the taxpayer's written application and if justified by the results of the audit carried out in accordance with the procedure established by Section 17 of the Code or by the study of the justification of the amounts subject to crediting to the unified account.

Article 75 of the Code shall be supplemented with the following part 5:

Article 75. Submission of unified calculations for value added tax and excise tax Submission of unified calculations for value added tax and excise tax

Old version.

New version.

5. A taxpayer operating under a special taxation system shall submit a unified calculation of VAT and excise tax to the tax authority by the 20th of the month following the reporting period in accordance with Article 53 of the Code, if the amounts of VAT subject to offset (deduction) in respect of transactions subject to VAT carried out during the reporting period for which the taxpayer is considered a VAT payer are subject to offset (deduction) in accordance with Article 71 of the Code in the reporting period, or if the results of the adjustment of transactions subject to VAT carried out during the reporting period for which the taxpayer is considered a VAT payer are subject to reflection in the reporting period.

To amend Part 1 of Article 320 of the Code as follows:

Article 320. Accounting for tax liabilities and debit amounts arising from inspection reports (study protocols, administrative acts):

Old version.

1. The taxpayer's tax liabilities and debit amounts
to the state budget, recorded as a result of an
inspection (investigation, operational-investigative
measures) conducted by the tax authority at the
taxpayer's premises, are recorded on the date of
drawing up the inspection report (investigation
report, administrative act), respectively, but no
later than the closing date of the order (decision)
serving as the basis for conducting the inspection
(investigation, operational-investigative
measures), without changing the balances available
as of that date.

New version.

1. The taxpayer's tax liabilities and debit amounts to the state budget, established by the tax authority as a result of an inspection (investigation, operational-investigative measures) carried out by the taxpayer, shall be recorded in the personal account card maintained by the tax authority in accordance with Article 319, Part 6, Clause 2 of the Code, on the day following the day the inspection or other administrative act becomes final, in accordance
with the procedure established by Article 398, Part 6 of the Code.

6.1. The unified account of the administrative act shall be used to settle tax or payment obligations imposed by the tax authority in accordance with the procedure established by the Code, including penalties, fines, as well as obligations for compensation for damages established by the Code. From the amounts available in the unified account of the administrative act, social security tax obligations shall be settled first, then the taxpayer's tax obligations shall be settled from the amounts available in the unified account of the administrative act in accordance with the sequence of tax obligations existing as of the due date and having an
earlier payment deadline, and in case the payment
deadlines as of the due date coincide (the deadlines are the same), tax obligations shall be settled in accordance with the procedure for maintaining a personal account card established by Article 319, Part 6, Clause 2 of the Code. Moreover, from the amounts of tax obligations, the amounts of all taxes and payments shall be settled first, then penalties, and then fines, damages. compensation amounts.

Article 326 of the Code shall be amended as follows:

Article 326. The date of deposit of funds into the joint account or the joint account of the administrative act

Old version.

1. The date of deposit of amounts into the unified
account shall be considered as:
1) in respect of amounts resulting from the
submission of adjusted tax calculations, the date of
submission of the adjusted tax calculation.
2) in respect of amounts resulting from the
reduction of tax liability as a result of the execution
of a court decision or a decision adopted by the
appeal commission or from the increase of amounts
subject to deposit into the unified account specified
in Part 1 of Article 327 of the Code, the date of
adoption of the court decision or the decision of the
appeal commission.
3) in respect of amounts resulting from the
reduction of tax liability as a result of a complex
tax audit or investigation, or from the increase of
amounts subject to deposit into the unified account
specified in Part 1 of Article 327 of the Code, the date of drawing up the act of the complex tax audit
or the investigation protocol.

New version.

1. The date of entry of amounts into the unified account is considered to be:
1) the date of entry of amounts into the unified account as a result of making a payment to the unified account.
2) in respect of amounts resulting from the submission of revised tax calculations, the date of submission of the revised tax calculation.
3) in cases specified in Part 4 or 5 of Article 74 of the
Code, the date of entry of amounts subject to VAT
reimbursement into the unified account.
4) in cases specified in Part 4 or 5 of Article 95 of the
Code, the date of entry of amounts subject to excise tax reimbursement into the unified account.
5) in cases specified in Part 1 of Article 138 of the Code, the date of entry of the amount of profit tax subject to reimbursement from the state budget into the unified account.
6) The date of crediting the amount of royalty subject to compensation from the state budget to the unified account in cases specified in Part 1.1 of Article 223 of the Code.
7) The date of crediting the amounts from the unified account of the administrative act to the unified account.
8) The date of the adoption of the court decision or the decision of the appeal commission in respect of the amounts resulting from the reduction of the tax liability or the increase in the amounts subject to crediting to the unified account as a result of the execution of the court decision or the decision of the appeal commission.
2. The date of crediting the amounts to the unified
account of the administrative act is considered to be:
1) The date of crediting the amounts to the unified
account of the administrative act as a result of making a payment to the unified account of the administrative act.
2) The date of crediting the amounts from the unified account to the unified account of the administrative act.
3) in respect of amounts resulting from the reduction of tax liability or the increase of amounts subject to entry into the unified account of the administrative act as a result of a complex tax audit (re-audit) or investigation, the day following the day on which the complex tax audit act or investigation protocol becomes irrevocable."

Article 327 of the Code shall be amended as follows:

Article 327. Depositing funds into a joint account or a joint account of an administrative act, returning funds from a joint account or a joint account of an administrative act.

Old version.

1. The amounts substantiated by the results of the
examination shall be subject to entry into the
unified account on the basis of a conclusion in the
form established by the tax authority. The
conclusion shall be drawn up by the tax authority
and submitted to the treasury within three working
days following the date of receipt of the documents
substantiating the justification of the amounts: the
act of a comprehensive tax inspection or the
protocol of the examination, and the court ruling,
the decision of the appeal commission, the revised
tax calculation by the tax authority.
2. The amounts available in the unified account
shall be subject to refund to the taxpayer on the
basis of an application submitted by him to the tax
authority in the form and manner established by the
tax authority, within 20 days after its receipt, and
in the case of taxpayers with a valid law-abiding taxpayer certificate, within 10 days after receipt of
the application. The refund shall be made in the
amount specified in the application, but not more
than the amount available in the unified account as
of the date of refund. The refund of amounts from
the unified account shall be carried out by the
treasury by transferring the amount to the payer's
bank account, and in cases established by the
Government, in the manner established by the
Government. In case of delay in refunding the
amount by more than 30 days beyond the deadline
specified in this part, the taxpayer shall be paid a
penalty in the amount of 0.03 percent of the amount
subject to refund for each day of delay following
that deadline.

New version.

1. The amounts considered justified based on the results of the study of the justification of the amounts subject to crediting to the joint account shall be subject to crediting to the joint account, based on the conclusion in the form established by the tax authority, within three business days following the date of entry into force of the study protocol. 2. The amounts available in the joint account or the joint account of the administrative act shall be subject to refund to the taxpayer based on the application submitted by him to the tax authority in the form and manner established by the tax authority, within 20 days after receiving it, and in the case of taxpayers with a valid law- abiding taxpayer certificate, within 10 days after receiving the application. The refund shall be made in the amount specified in the application. The refund of amounts from the joint account or the joint account of the administrative act shall be carried out by the Treasury, transferring the amount to the taxpayer's bank account (and in cases established by the Government, to another account submitted to the tax authority in accordance with the procedure established by the Government) or to the joint account of the administrative act or the joint account. To the payer's bank account (and in cases established by the Government, to another account submitted to the tax authority in accordance with the procedure established by the Government) In case of delaying the refund of the amount by more than 30 days beyond the period specified in this part, the taxpayer shall be paid a penalty in the amount of 0.03 percent of the amount subject to refund for each day of delay following that period.

To supplement Part 3 of Article 401 of the Code with the following paragraph 3:

Article 401. Delay in payment of taxes beyond the established deadlines

3. Penalties shall also be calculated in accordance with the procedure established by this Article:

Old version.

New version.

3) as a result of the adjustment of the VAT and excise tax unified calculation submitted for the given reporting period, in the amount of the negative difference between the debit amount arising from the adjusted and the data included in the previous calculation, in relation to the amounts recorded as tax liabilities: a. from the date of participation in the repayment of the liabilities established by the Code for the given reporting period, if these amounts were directed to the repayment of VAT liabilities in accordance with Part 3 of Article 74 of the Code, or to the repayment of excise tax liabilities in accordance with Part 3 of Article 95 of the Code, b. from the date of entry into the unified account, if these amounts were entered into the unified account in accordance with Part 4 or 5 of Article 74 of the Code or Part 4 or 5 of Article 95 of the Code.

In Article 457 of the Code, Part 7 shall be amended as follows:

Article 457. Regulation of transitional tax relations related to Section 17 of the Code

Old version.

7. If, as of the 21st of the month following any
half-year before the Code enters into force, the taxpayer has an amount of VAT amounts subject to
offset in the reporting period exceeding the VAT
amounts calculated in relation to the taxable
turnover (for the purposes of this part, the amount
of VAT subject to offset from the budget), then this
amount, based on a written application of a
taxpayer with state registration (registration) in
accordance with the procedure prescribed by law
and justified by the results of an inspection or
examination carried out in accordance with the
procedure prescribed by Part 17 of the Code, shall
be credited to the single account, except for cases
prescribed by law. The provisions of this part shall
apply to the amount of VAT amounts subject to
offset resulting from VAT calculations submitted
to the tax authority for each half-year reporting
period exceeding the VAT amounts calculated in
relation to the taxable turnover (the amount of VAT
subject to offset from the budget).

New version.

7. Tax liabilities recorded and unfulfilled (unpaid) before January 1, 2025, in accordance with Article 319, Part 6, Clause 1 of the Code, are recorded in personal account cards maintained by the tax authority in the manner established by the tax authority.

Հին տարբերակ

7. Եթե մինչեւ Օրենսգիրքն ուժի մեջ մտնելը որեւէ կիսամյակին հաջորդող ամսվա 21-ի դրությամբ հարկ վճարողն ունի հաշվետու ժամանակաշրջանում հաշվանցման ենթակա ԱԱՀ-ի գումարների` հարկվող շրջանառության նկատմամբ հաշվարկված ԱԱՀ-ի գումարները գերազանցող գումար (սույն մասի կիրառության իմաստով` բյուջեից հաշվանցման ենթակա ԱԱՀ գումար), ապա այդ գումարն օրենքով սահմանված կարգով պետական գրանցում (հաշվառում) ունեցող հարկ վճարողի գրավոր դիմումի հիման վրա Օրենսգրքի 17-րդ բաժնով սահմանված կարգով իրականացվող ստուգման կամ ուսումնասիրության արդյունքներով հիմնավորվելու դեպքում մուտքագրվում է միասնական հաշվին, բացառությամբ օրենքով սահմանված դեպքերի: Սույն մասի դրույթները տարածվում են յուրաքանչյուր կիսամյակի հաշվետու ժամանակաշրջանների համար հարկային մարմին ներկայացված ԱԱՀ-ի հաշվարկներով առաջացած` հաշվանցման ենթակա ԱԱՀ-ի գումարների` հարկվող շրջանառության նկատմամբ հաշվարկված ԱԱՀ-ի գումարները գերազանցող գումարի (բյուջեից հաշվանցման ենթակա ԱԱՀ գումար) վրա։

Նոր տարբերակ

7. Մինչեւ 2025 թվականի հունվարի 1-ը հաշվառված եւ չկատարված (չմարված) հարկային պարտավորությունները, Օրենսգրքի 319-րդ հոդվածի 6-րդ մասի 1-ին կետի համաձայն, հարկային մարմնի կողմից վարվող անձնական հաշվի քարտերում հաշվառվում են հարկային մարմնի սահմանած կարգով:

2) fill in parts 8-10 with the following content.

Old version.

New version.

«8. Until January 1, 2025, tax liabilities recorded by an inspection or other administrative act drawn up by the tax authority and not fulfilled (unpaid) shall be recorded in the personal account cards maintained by the tax authority in accordance with Clause 2 of Part 6 of Article 319 of the Code in the manner established by the tax authority. 9. The refundable amounts of VAT and excise tax available as of December 31, 2024 shall be recorded as risk refundable amounts. In terms of VAT, these refundable amounts may be directed to the repayment of VAT liabilities in accordance with Part 3 of Article 74 of the Code, or credited to a single account in accordance with Part 5 of Article 74 of the Code, and in terms of excise tax, these refundable amounts may be directed to the repayment of excise tax liabilities in accordance with Part 2 of Article 74 of the Code. In accordance with Part 3 of Article 95 of the Code, or credited to a single account in accordance with Part 5 of Article 95 of the Code. 10. After January 1, 2025, tax liabilities reflected in tax calculations (including adjusted ones) submitted to the tax authority or imposed by an inspection or other administrative act drawn up by the tax authority, regardless of the reporting period they relate to, shall be recorded in personal account cards maintained by the tax authority in accordance with Part 6 of Article 319 of the Code, in the manner established by the tax authority.)

2. On making additions and amendments to the Tax Code of the Republic of Armenia regarding non-compliance with the requirements for documentation of transactions for the acquisition of goods, as well as transitional provisions to be implemented by taxpayers from 2025

Name of the legislative act:

Law HO-340-N on Amendments and Supplements to the Tax Code of the Republic of Armenia
https://www.arlis.am/documentview.aspx?docid=185690

Change Status:

The amendment to the law has transitional provisions that entered into force on January 1, 2025.

Which legislative act was amended by the adoption of the above-mentioned act:՝

With the adoption of the above-mentioned act, a change was made to the Tax Code.

What the changes are about:

The transitional provisions of the amendment to the law regulate the scope of legal relations that will be implemented from January 1, 2025.
In particular, from January 1, 2025, the customs value of goods imported under the "Release for domestic consumption" customs procedure, and for goods imported from the EAEU member states, the actual deficit of the balance of goods with turnover taxpayers not exceeding the threshold of 100 million drams of the VAT tax base (excluding excise tax) determined in accordance with the established procedure, will be measured in accordance with this law, and the liability measure established for failure to comply with the requirements for documentation of transactions for the acquisition of goods (except for raw materials, materials, fixed assets and foreign currency) will be applied to turnover taxpayers with respect to goods acquired from January 1, 2025 and after, as well as other provisions provided for by law.

To supplement the Code with the following content with Article 406.1

Article 406.1. Failure to comply with the requirements for documentation of transactions for the acquisition of goods (except for raw materials, materials, fixed assets and foreign currency)

Old version.

New version.

1. In the event that the fact of non-compliance with the documentation requirements for the acquisition of goods (except for raw materials, materials, fixed assets, foreign currency, agricultural products and secondary raw materials included in the list established by the Government) by turnover taxpayers is recorded during a comprehensive tax inspection or measurement carried out by the tax authority, a fine in the amount of 20 percent of the purchase price (value) of these goods shall be levied from the turnover taxpayer. In the event of a repeat violation within one year after the violation specified in this part is recorded, a fine in the amount of 50 percent of the purchase price (value) of the goods shall be levied. 2. The fine specified in this Article for non-compliance with the documentation requirements for the acquisition of goods (except for raw materials, materials, fixed assets, foreign currency, agricultural products and secondary raw materials included in the list established by the Government) shall be a final tax liability in terms of calculating income tax (including as a tax agent). 3. For the purposes of applying the fines specified in this Article, the purchase price of the goods In case of impossibility of determining the (value) price of the goods, the purchase price (value) of the goods shall be considered to be the weighted average sale (realization) price of the same goods at the taxpayer's premises in the quarter in which the violation was discovered, substantiated by bilateral settlement documents, and in its absence, the price determined by indirect methods prescribed by the Code.

According to the transitional provisions of Article 10 of the Amendment to the Law:

4. In order to determine the actual deficit of the balance of goods with turnover taxpayers, in accordance with this Law, the measurement in accordance with this Law shall be carried out from January 1, 2025, in accordance with the established procedure, in any month of the tax year, in the case of sales turnover or the customs value of goods imported from non-EAEU member states under the customs procedure "Release for domestic consumption", and in the case of goods imported from EAEU member states, the threshold of 100 million drams of the VAT tax base (excluding excise tax) determined in the prescribed manner, not exceeding the threshold.

5. Those taxpayers who, as of January 1, 2025, in accordance with Part 2 of Article 457 of the Code, did not account for the balance of goods by separate places of supply and storage, shall be obliged to account for the balance of goods by separate places of supply and storage as of February 1, 2025, if, as of January 1, 2025, in the previous tax year, The value of goods (excluding raw materials, materials, fixed assets and foreign currency) (excluding VAT, excise tax and/or environmental tax amounts) acquired with the relevant documents specified in paragraphs 1-5 of Part 2 of this Article and (or) Part 13 of this Article or the customs value of goods imported from non-member states of the EAEU under the customs procedure "Release for domestic consumption", and the VAT tax base determined in accordance with the established procedure (excluding excise tax) for goods imported from member states of the EAEU exceeds the threshold of 24 million drams.

6. Taxpayers who, as of January 1, 2025, in accordance with Part 2 of Article 457 of the Code and (or) Part 5 of this Article, did not account for the balances of goods by separate places of supply and storage, but subsequently, as of any date, during any period of the tax year, the taxpayer (that including newly created (state-registered or registered)) the value of goods (excluding raw materials, materials, fixed assets and foreign currency) acquired with the relevant documents specified in paragraphs 1-5 of Part 2 of Article 55 of the Code and (or) Part 13 (excluding VAT, excise tax and (or) environmental tax) or the customs value of goods imported from non- member states of the EAEU under the customs procedure "Release for domestic consumption", and the VAT tax base determined in accordance with the established procedure for goods imported from member states of the EAEU (excluding excise tax) exceeds the threshold of 24 million drams, are obliged to account for the balances of goods by separate places of supply and storage as of the 1st of the month following the reporting month.

7. The liability measure specified in Article 8 of this Law shall apply to turnover tax payers from January 2025 For products purchased on or after the 1st.

3. On making amendments to the Tax Code of the Republic of Armenia regarding the refund of income tax

Name of the legislative act

On Amendments to the Tax Code of the Republic of Armenia
HO-229-N
https://www.arlis.am/documentview.aspx?docid=193377

Change status:

Article 1 of the Law shall enter into force on January 1, 2025. In terms of the application of the restrictions set forth herein, only violations of the law established by this Law recorded in inspection or other administrative acts drawn up after the entry into force of this Law shall be taken into account.

Which legislative act was amended by the adoption of the above-mentioned act:՝

With the adoption of the above-mentioned act, a change was made to the Tax Code.

What the changes are about:

The amendment to the law relates to the unified account for the refund and deposit of income tax, in particular, it is provided that no compensation will be made from the state budget if the resident organization of the Republic of Armenia paying dividends has had a violation stipulated by law recorded by an inspection or other administrative act that has become unappealable during the tax year including the day of submitting applications for compensation of income tax paid from dividends distributed from the profit formed as a result of the activities of the reporting periods after January 1, 2025 to the tax authority or during the previous tax year.

To amend Part 4 of Article 159 of the Tax Code of the Republic of Armenia of October 4, 2016 (hereinafter referred to as the Code) as follows:

Article 159. Refund and deposit of income tax into a joint account

Old version.

In the event that income received in the form of
dividends is invested in the statutory or share capital
of the same organization that pays dividends and is a
resident of the Republic of Armenia during the tax
year of their receipt, in accordance with the procedure established by the legislation, the invested amount, in the amount of the investment, but not more than the amounts of tax paid to the state budget from dividends, shall be reimbursed from the state budget in accordance with the procedure established by the Government.

New version.

In the event that the income received in the form of dividends is invested in the statutory or share capital of the same organization, resident of the Republic of Armenia, paying dividends, in accordance with the procedure established by the legislation, the invested amount, in the amount of the investment, but not more than the amounts of tax paid to the state budget from dividends, shall be reimbursed from the state budget in the manner established by the Government, taking into account the restrictions established by this part. No reimbursement from the state budget, as defined by this part, shall be made if the organization, resident of the Republic of Armenia, paying dividends, paid income tax on profits distributed from the results of its activities in the reporting periods after January 1, 2025, has had, during the tax year including the date of submission of applications for reimbursement of income tax paid from dividends distributed from the results of its activities to the tax authority and or the previous tax year, an audit or other administrative act that has become unappealable:

1) Article 408 or 410 or 415 of the Code violation of any of the requirements. 2) Violation of the requirements of Article 412 of the Code two or more times. 3) Violation of the requirements of Article 416 of the Code three or more times. The fact that the inspection or other administrative act relating to the violations specified in the second paragraph of this part remains in force as a result of an administrative or judicial appeal shall not be a basis for returning the amounts of income tax reimbursed to the state budget based on the applications provided for in this part.

4. On making amendments to the Tax Code of the Republic of Armenia in turnover tax rates, the procedure for reformulating liabilities and offsets

Name of the legislative act:

On Amendments to the Tax Code of the Republic of Armenia
HO-285-N
https://www.arlis.am/documentview.aspx?docid=201067

Change Status:

This Law shall enter into force on January 1, 2025 and shall apply to relations arising thereafter, unless otherwise provided by law.

Which legislative act was amended by the adoption of the above-mentioned act:՝

With the adoption of the above-mentioned act, a change was made to the Tax Code.

What the changes are about:

The amendment to the law specifically relates to the procedure for reformulating liabilities and offsets (deductions), the rewriting of the provisions on turnover tax provided for by the code, as well as the procedure for calculating the amount of turnover tax payable to the state budget.

In Article 73 of the Code, Part 14 shall be amended as follows:

Article 73. In Article 73 of the Code, Part 14 shall be amended as follows:

Old version.

14. Restatements shall not be made in accordance
with the procedure established by this Article if the
taxpayer is not considered a VAT payer during the
reporting period established by this Article for the
purpose of making the restatement.

New version.

14. According to the Code, the amounts of VAT offset (deducted) in accordance with the procedure established by the Code in respect of acquisitions existing with VAT payers as of the date of transition from the general taxation system to special taxation systems in previous reporting periods are subject to recalculation: deduction from the amounts of VAT subject to offset (deductible) in the reporting period, by submitting to the tax authority a unified calculation of VAT and excise tax for the last reporting period preceding the given date for which the VAT payer was considered:

1) in respect of the corresponding value of goods (except for fixed assets or intangible assets), work or services, in the amount calculated at a 20 percent VAT rate.

2) in respect of the book value of fixed assets or intangible assets, in the amount calculated at a 20 percent VAT rate.

Article 258 of the Code shall be amended as follows:

Article 258. Sales tax rates

1. The turnover tax shall be calculated on the basis of the tax base of transactions subject to turnover tax at the following rates, taking into account the provisions set forth in Parts 2-8 of this Article:

	Income type	Rate (percentage)
1)	Income from trading (buying and selling) activities, except for income from the types of activities provided for in points 2 and 9 of this table	10
2)	Income from trading (buying and selling) of secondary raw materials included in the list established by the government	5
3)	Revenues from the sale of newspapers by editorial offices	1.5
4)	Income from production activities	7
5)	Rental fee, interest, royalty	10
6)	Revenues from activities carried out in the public catering sector	12
7)	Income from the alienation of other assets, as well as from other activities, not included in the "Public catering" section of the economic activity classifier used in the Republic of Armenia, by turnover taxpayers who have submitted a declaration in the form approved by the tax authority on being considered a turnover taxpayer for carrying out activities in the public catering sector	20
8)	Income from activities included in the list of high-tech activities established by the government	1
9)	Income from the disposal of other assets, including real estate	10
10)	Income from other activities	10

In Article 18 of the Code, add the following part 2.1:

2. For the reporting period, the amount of turnover tax calculated at the rate specified in Part 1 of this Article in relation to the tax base formed from commercial (purchase and sale) activities, as defined in Point 1 of the Table of Part 1 of this Article, shall be reduced by an amount equal to 9.5 percent of the total expenses specified in Part 6 of this Article. If, after the reductions specified in this Part, the amount of turnover tax amounts to less than one percent of the tax base formed from commercial (purchase and sale) activities, the reduction in expenses shall be made to the extent that the amount of turnover tax amounts to one percent of the tax base formed from commercial (purchase and sale) activities.

3. The amount of turnover tax calculated at the rate specified in Part 1 of this Article in respect of the tax base formed from production activities for the reporting period, as defined in point 4 of the table in Part 1 of this Article, shall be reduced by an amount constituting 5 percent of the total amount of expenses specified in Part 6 of this Article. If, after the deductions specified in this Part, the amount of turnover tax constitutes less than 3 percent of the tax base formed from production activities, then the reduction in expenses shall be made to the extent that the amount of turnover tax constitutes 3 percent of the tax base formed from production activities.

4. For the reporting period, the amount of turnover tax calculated at the rate specified in Part 1 of this Article in relation to the tax base formed from activities carried out in the public catering sector, as defined in Point 6 of the Table of Part 1 of this Article, shall be reduced by an amount constituting 9 percent of the total expenses specified in Part 6 of this Article. If, after the deductions specified in this Part, the amount of turnover tax constitutes less than 3.5 percent of the tax base formed from activities carried out in the public catering sector, the reduction in expenses shall be made to the extent that the amount of turnover tax constitutes 3.5 percent of the tax base formed from activities carried out in the public catering sector.

5. The amount of turnover tax calculated at the rate specified in Part 1 of this Article in respect of the tax base formed from other activities for the reporting period, as defined in Point 10 of the Table of Part 1 of this Article, shall be reduced by an amount constituting 6 percent of the total amount of expenses specified in Part 6 of this Article. If, after the deductions specified in this Part, the amount of turnover tax constitutes less than 4.5 percent of the tax base formed from other activities, as defined in Point 10 of the Table of Part 1 of this Article, then the deduction for expenses shall be made in such an amount that the amount of turnover tax constitutes 4.5 percent of the tax base formed from other activities. 6. For the purposes of applying Parts 2-5 of this Article: 1) Expenses deductible from the amount of turnover tax are considered to be expenses incurred in a given reporting period and justified by documents specified in paragraphs 1-5 of Part 2 of Article 55 of the Code, as well as parts 12 and 13 of the same Article, directly related to the production of goods, performance of works and (or) provision of services (except for depreciation deductions for fixed assets of production purpose in operation and intangible assets in operation, as well as expenses incurred on these fixed assets and intangible assets), the initial cost of goods that are the subject of trading (purchase and sale) activities, as well as sales expenses. For the purposes of applying this point:

a. Expenses incurred during the reporting period are considered to be expenses for goods purchased, services received, and work accepted during the reporting period.

b. Expenses directly related to the production of goods, performance of works and (or) provision of services are considered to be the expenses defined in point 1 of paragraph 3 of part 7 of Article 121 of the Code (except for depreciation deductions for fixed assets of production purpose in operation and intangible assets in operation, as well as expenses incurred on such fixed assets and intangible assets), and sales expenses are considered to be the expenses defined in point 3 of paragraph 3 of part 7 of Article 121 of the Code.

2) Expenses deductible from the amount of turnover tax are not considered expenses for assets, works and services received free of charge, as well as the original cost of other assets that are not culinary products, in the case of alienation by taxpayers operating in the public catering sector.

7. In accordance with Parts 2-5 of this Article, the part of the turnover tax amount not reduced by expenses (including in the absence of tax bases formed from other activities carried out in the trade (purchase and sale), production, public catering and specified in point 10 of the table of Part 1 of this Article for the reporting period) shall be deducted from the amount of turnover tax calculated for subsequent reporting periods, respectively, in relation to the tax bases formed from other activities carried out in the trade (purchase and sale), production, public catering and specified in point 10 of the table of Part 1 of this Article, in compliance with the requirements of Parts 2-5 of this Article.

8. "Turnover taxpayers who have submitted a declaration in the form approved by the tax authority on being considered a turnover tax payer for carrying out activities in the public catering sector shall calculate turnover tax only at the relevant rates set out in paragraphs 6 and 7 of the table in part 1 of this Article."

Article 260 of the Code shall be amended as follows:

Article 260. Procedure for calculating the amount of turnover tax payable to the state budget

Old version.

1. Turnover taxpayers shall pay to the state budget the amount of turnover tax calculated by applying the relevant rates established by Part 1 of Article 258 of the Code to the tax base formed during that period based on the results of their activities during the reporting period (except for activities carried out in the field of trade (purchase and sale) and public catering).

2. Turnover taxpayers shall pay to the state budget the difference between the amount of turnover tax calculated by applying the rate established by Part 1 of Article 258 of the Code to the tax base formed during that period based on the results of their activities during the reporting period (except for activities carried out in the field of trade (purchase and sale) of secondary raw materials included in the list established by the Government of the Republic of Armenia) and the amount deducted from the amount of turnover tax calculated in accordance with the procedure established by Part 2 of Article 258 of the Code.

3. Turnover taxpayers shall pay to the state budget the amount of turnover tax calculated by applying the relevant rates established by Part 1 of Article 258 of the Code to the tax base formed during that period based on the results of their activities during the reporting period in the field of public catering. shall pay to the budget the difference between the amount of turnover tax calculated by applying the rate established by Part 1 of Article 258 of the Code to the tax base formed during that period and the amount deducted from the amount of turnover tax calculated in accordance with the procedure established by Part 3 of Article 258 of the Code.

4. Separate accounting of goods shall be carried out for the purpose of calculating turnover tax in respect of activities carried out in the field of trade (purchase and sale) or public catering.

New version.

1. Turnover taxpayers shall pay to the state budget the amount of turnover tax calculated by applying the relevant rates established by Part 1 of Article 258 of the Code to the tax base formed during that period based on the results of their activities during the reporting period (except for the activities defined by Items 1, 4, 6 and 10 of the Table of Part 1 of Article 258 of the Code).

2. Turnover taxpayers shall pay to the state budget the amount of turnover tax calculated by applying the relevant rate established by Part 1 of Article 258 of the Code to the tax base formed during that period based on the results of their activities during the reporting period based on the activities defined by Items 1, 4, 6 and 10 of the Table of Part 1 of Article 258 of the Code and the amounts established by Parts 2-5 and 3 of Article 258 of the Code. The difference between the amount deducted from the amount of turnover tax calculated in accordance with the procedure established by Part 7.

3. Separate accounting of expenses shall be carried out for the purpose of calculating turnover tax in respect of the activities defined in paragraphs 1, 4, 6 and 10 of the table of Part 1 of Article 258 of the Code.

In Article 264 of the Code, Part 4 shall be amended as follows:

Article 264. Transition from a turnover tax system to a general taxation system

Old version.

8. The results of the examination are summarized in
the organization and an expert conclusion is drawn up, which is submitted to the authorized body on the working day following the end of the examination, also notifying the applicant in writing about the results of the examination by postal delivery or via e- mail.

New version.

4. In case of transition from the turnover tax system to the general taxation system, in accordance with Part 7 of Article 258 of the Code, the unreduced part of expenses shall be reduced from the gross income of the reporting period including the date of transition from the turnover tax system to the general taxation system by 10 times for trading (purchase and sale) activities, 20 times for production activities, 10 times for activities carried out in the public catering sector, and 15 times for other activities specified in Point 10 of the table of Part 1 of Article 258 of the Code.

5. Order No. 849 of the Chairman of the State Revenue Committee of the Republic of Armenia
dated August 17, 2022 on making amendments to the bases of reporting periods in relations
related to the submission of tax calculations submitted electronically to the tax authority

Name of the legislative act:

On Amendments to Order No. 849 of the Chairman of the State Revenue Committee of the Republic of Armenia dated August 17, 2022 No. 1739-N
https://www.arlis.am/documentview.aspx?docid=201801

Change Status:

This Decision entered into force on January 9, 2025.

Which legislative act was amended by the adoption of the above-mentioned act:՝

With the adoption of the above-mentioned act, an amendment was made to the Order No. 849 of the Chairman of the State Revenue Committee of the Republic of Armenia of August 17, 2022.

What the changes are about:

A change has been made to the Resolution of the Government of the Republic of Armenia No. 849-N of August 17, 2022 "On Establishing the Procedure for Submitting Tax Calculations (including Adjusted Tax Calculations) Increasing the Tax Liability and/or Reducing the Amount to be Set Off (Reduced)", in particular, an amendment has been made to the bases of the reporting period regarding tax calculations submitted electronically to the tax authority in the Republic of Armenia that increase the tax liability and/or reduce the amount to be set off/reduced.

In paragraph 1 of the appendix to the Order of the Chairman of the State Revenue Committee of the
Republic of Armenia dated August 17, 2022 N 849-N "On establishing the procedure for submitting tax
calculations (including corrected tax calculations) that increase the tax liability and (or) reduce the
amount to be credited (deducted)", add sub-paragraphs 3-5 with the following content:

ORDER

Submission of tax calculations (including adjusted tax calculations) increasing the tax liability and (or) reducing the amount to be credited (deducted)
1. This procedure regulates the relations related to the submission of tax calculations (including adjusted tax calculations) submitted electronically to the tax authority increasing the tax liability and (or) reducing the amount to be credited (deducted) and relating to the reporting period: "3) which has already been examined by the tax authority in relation to the given type of tax in accordance with the procedure established by Article 349.1 of the Tax Code of the Republic of Armenia,
4) which has already been examined by the tax authority for the purpose of examining the justification of the amounts subject to entry into the unified account,

5) the entry of the resulting amounts of refundable value added tax into the unified account was carried out in accordance with Part 10 of Article 348 of the Tax Code of the Republic of Armenia, in accordance with the simplified procedure established by the Government of the Republic of Armenia."

6. On making additions and amendments to the Decision of the Government of the Republic of
Armenia No. 1371-N of September 28, 2017 on the rejection of an application for income tax
refund and the restrictions provided for by the Tax Code

Name of the legislative act:

On making amendments and supplements to the Decision of the Government of the Republic of Armenia No. 1371-N of September 28, 2017 N 1598-Ն
https://www.arlis.am/documentview.aspx?docid=198337

Change Status:

This decision is effective from January 1, 2025.

Which legislative act was amended by the adoption of the above-mentioned act:՝

The adoption of the above-mentioned act amended the Resolution of the Government of the Republic of Armenia of September 28, 2017 No. 1371-N "On establishing the procedure for compensating the income tax paid on dividends from the state budget in the event that income received in the form of dividends is invested in the statutory or share capital of the same organization that is a resident of the Republic of Armenia paying dividends during the tax year of their receipt, in accordance with the procedure established by the legislation."

What the changes are about:

A change has been made in the Resolution of the Government of the Republic of Armenia dated September 28, 2017 N 1371-N “On establishing the procedure for compensating income tax paid from the state budget in the event that income received in the form of dividends is invested in the statutory or share capital of the same organization that pays dividends and is a resident of the Republic of Armenia during the tax year of their receipt, in accordance with the procedure established by the legislation”, according to which from now on, the procedure for compensating amounts due to persons who received dividends must also take into account the restrictions on “Refund of Income Tax Amount and Deposit into a Unified Account” provided for by the Tax Code. The resolution also clarified the grounds for a clear rejection of an application for Income Tax Compensation by the tax authority.

To supplement with new content paragraph 2 of the appendix approved by paragraph 1 of the Resolution of the Government of the Republic of Armenia No. 1371-N of September 28, 2017 “On establishing the procedure for compensating the income tax paid on such dividends from the state budget in the event that income received in the form of dividends is invested in the statutory or share capital of the same organization that pays dividends and is a resident of the Republic of Armenia during the tax year of their receipt, in accordance with the procedure established by the legislation”

Old version.

2. Within the meaning of this procedure, persons who have received dividends shall be compensated for the entire amount invested by such persons in the statutory or share capital of a resident organization of the Republic of Armenia in accordance with Part 4 of Article 159 of the Tax Code of the Republic of Armenia, but not more than the amounts of income tax paid by the same resident organization of the Republic of Armenia during the tax year of payment of dividends from the income received by such person in the form of dividends.

New version.

2. Within the meaning of this procedure, persons who have received dividends shall be compensated for the entire amount invested by such persons in the statutory or share capital of a resident organization of the Republic of Armenia in accordance with Part 4 of Article 159 of the Tax Code of the Republic of Armenia, but not more than the amounts of income tax paid by the same resident organization of the Republic of Armenia during the tax year of payment of dividends from the income received by such person in the form of dividends, taking into account the limitations set forth in Part 4 of Article 159 of the Tax Code of the Republic of Armenia.

to be supplemented with the following new sub-item 4.2.

Old version.

New version.

4.2) a certificate provided by the authorized body on the increase in the share capital (share capital) of the same cooperative by resident individuals during the reporting year, in accordance with Form No. 3.2 of this procedure.

Paragraph 5 should be amended as follows:

Հին տարբերակ

5. Եկամտային հարկի գումարների փոխհատուցման նպատակով հարկային մարմին ներկայացված՝ սույն կարգի 3-րդ կետով սահմանված փաստաթղթերն ամբողջական չլինելու դեպքում հարկային մարմինը եկամտային հարկի փոխհատուցման համար դիմում ներկայացրած անձին առաջարկում է տասն աշխատանքային օրվա ընթացքում շտկել առկա թերությունները: Եկամտային հարկի փոխհատուցման մասին դիմումը հարկային մարմնի որոշմամբ մերժվում է, եթե սույն կետով սահմանված ժամկետում չեն ներկայացվել սույն կարգի 3-րդ կետով սահմանված փաստաթղթերը: Եկամտային հարկի փոխհատուցման մասին դիմումը հարկային մարմնի կողմից մերժվելու դեպքում եկամտային հարկի փոխհատուցումը մերժելու մասին հարկային մարմնի որոշումը սույն կետով սահմանված ժամկետի ավարտին հաջորդող հինգ աշխատանքային օրվա ընթացքում ներկայացվում է դիմում ներկայացրած անձին: Եկամտային հարկի փոխհատուցումը մերժելու մասին հարկային մարմնի որոշումն ստանալուց հետո անձը կարող է հարկային մարմին կրկին ներկայացնել դիմում՝ սույն կարգի N 1 ձեւի համաձայն:

Նոր տարբերակ

5. Եկամտային հարկի գումարների փոխհատուցման նպատակով հարկային մարմին ներկայացված՝ սույն կարգի 3-րդ կետով սահմանված փաստաթղթերն ամբողջական չլինելու (կամ) ներկայացված փաստաթղթերում անհամապատասխանություններ հայտնաբերելու դեպքում հարկային մարմինը եկամտային հարկի փոխհատուցման համար դիմում ներկայացրած անձին առաջարկում է տասն աշխատանքային օրվա ընթացքում շտկել առկա թերությունները: Եկամտային հարկի փոխհատուցման մասին դիմումը հարկային մարմնի որոշմամբ մերժվում է, եթե՝

1) սույն կետով սահմանված ժամկետում չեն ներկայացվել սույն կարգի 3-րդ կետով սահմանված փաստաթղթերը կամ չեն ուղղվել ներկայացված փաստաթղթերում առկա անհամապատասխանությունները.

2) շահաբաժին վճարող Հայաստանի Հանրապետության ռեզիդենտ կազմակերպությունը 2025 թվականի հունվարի 1-ից հետո ընկած հաշվետու ժամանակաշրջանների գործունեության արդյունքներով ձեւավորվող շահույթից բաշխվող շահաբաժիններից վճարված եկամտային հարկի փոխհատուցման դիմումները հարկային մարմին ներկայացնելու օրը ներառող հարկային տարվա կամ նախորդ հարկային տարվա ընթացքում ունեցել է անբողոքարկելի դարձած ստուգման կամ այլ վարչական ակտով արձանագրված՝

ա. Հայաստանի Հանրապետության հարկային օրենսգրքի 408-րդ կամ 410-րդ կամ 415-րդ հոդվածի պահանջներից որեւէ մեկով խախտում,

բ. Հայաստանի Հանրապետության հարկային օրենսգրքի 412-րդ հոդվածի պահանջների երկու եւ ավելի անգամ խախտում,

գ. Հայաստանի Հանրապետության հարկային օրենսգրքի 416-րդ հոդվածի պահանջների երեք եւ ավելի անգամ խախտում։ Եկամտային հարկի փոխհատուցման մասին դիմումը հարկային մարմնի կողմից մերժվելու դեպքում եկամտային հարկի փոխհատուցումը մերժելու մասին հարկային մարմնի որոշումը սույն կետով սահմանված ժամկետի ավարտին հաջորդող հինգ աշխատանքային օրվա ընթացքում ներկայացվում է դիմում ներկայացրած անձին: Եկամտային հարկի փոխհատուցումը մերժելու մասին հարկային մարմնի որոշումն ստանալուց հետո անձը կարող է հարկային մարմին կրկին ներկայացնել դիմում՝ սույն կարգի N 1 ձեւի համաձայն՝ բացառությամբ սույն կետի 2-րդ ենթակետում նշված դեպքերի:

7. On making amendments and supplements to the Tax Code of the Republic of Armenia
regarding the accounting of individual types of income, limitations on deductions from gross
income for the purpose of determining the tax base, the peculiarities of accounting for individual
types of expenses, and other deductions provided for by the Code

Name of the legislative act:

On making amendments and additions to the Tax Code of the Republic of Armenia ՀՕ-499-Ն
https://www.arlis.am/documentview.aspx?docid=201054

Change Status:

This law shall enter into force on January 1, 2025 and shall remain in force until December 31, 2031.

Which legislative act was amended by the adoption of the above-mentioned act:՝

With the adoption of the above-mentioned act, a change was made to the Tax Code.

What the changes are about:

The implementation of the amendment to the Tax Code is particularly related to the adoption of the Law "On State Support for the High-Tech Sector". In particular, amendments have been made to the Tax Code in the provisions on the accounting of individual types of income, limitations on deductions from gross income for the purpose of determining the tax base, the peculiarities of accounting for individual types of expenses, and other deductions provided for by the Code.

8. On establishing the criteria for considering the amounts of value added tax or excise tax refundable resulting from the unified calculation of value added tax and excise tax submitted to the tax authority based on the results of the reporting period as risky

Name of the legislative act:

On establishing the criteria for considering the amounts of value added tax or excise tax refundable resulting from the unified calculation of value added tax and excise tax submitted to the tax authority based on the results of the reporting period as risky N 155-Ն
https://www.arlis.am/DocumentView.aspx?docid=189277

Change Status:

This decision shall enter into force on January 1, 2025, in accordance with the amendment to subparagraph 1 of paragraph 1 of resolution N 810-N of 30.05.24.

What the changes are about:

The Decision provides for the criteria for considering the amounts of value added tax or excise tax refundable arising from the unified calculation of value added tax and excise tax submitted to the tax authority based on the results of the reporting period as risky. In particular, the Decision provides for the cases in which the amount of value added tax (hereinafter referred to as VAT) refundable arising from the unified calculation of value added tax and excise tax submitted to the tax authority based on the results of the activities of the Organization or individual entrepreneur or notary (hereinafter referred to as the taxpayer) based on the results of each reporting period in accordance with the procedure established by the Tax Code of the Republic of Armenia (hereinafter referred to as the Code) (hereinafter referred to as the unified calculation) is considered risky if any of the criteria provided for in the Decision are present.

ON DETERMINING THE CRITERIA FOR CONSIDERING THE AMOUNTS OF VALUE ADDED TAX
OR EXCISE TAX REIMBURSED BY THE JOINT CALCULATION OF VALUE ADDED TAX AND
EXCISE TAX SUBMITTED TO THE TAX BODY AS A RESULT OF THE REPORTING PERIOD AS

RISK

Based on Articles 74, 4 and 5, 95, 4 and 5, and 348, Part 1 of the Tax Code of the Republic of Armenia, the Government of the Republic of Armenia decides:
1. To establish the criteria for considering the amounts of value added tax or excise tax refundable resulting from the unified calculation of value added tax and excise tax submitted to the tax authority based on the results of the reporting period as risky, in accordance with the appendix.

9. On establishing the procedure for recording tax liabilities recorded and outstanding (unpaid)
until January 1, 2025 in personal account cards maintained by the tax authority.

Name of the legislative act:

Decree No. 1512-N on establishing the procedure for recording tax liabilities recorded and outstanding (unpaid) until January 1, 2025 in personal account cards maintained by the tax authority
https://www.arlis.am/DocumentView.aspx?DocID=199961

Change status:

This order entered into force on January 1, 2025.

What the changes are about:

The order particularly concerns issues related to the recording of tax liabilities recorded and unfulfilled in terms of tax or payment until January 1, 2025 and debit amounts existing as of January 1, 2025 in the personal account card maintained electronically by the tax authority in accordance with Part 6 of Article 319 of the Tax Code of the Republic of Armenia, based on the data reflected in the tax calculations submitted by taxpayers and in the personal account card based on the data reflected in the inspection or other administrative act drawn up by the tax authority.

1. To establish:
1) the procedure for recording tax liabilities recorded and outstanding (unpaid) until January 1, 2025 in personal account cards maintained by the tax authority, in accordance with the appendix.
2. This order shall enter into force on January 1, 2025.

UNTIL JANUARY 1, 2025, TAX LIABILITIES CALCULATED AND UNFULFILLED (UNPAID) TO BE
CALCULATED ON PERSONAL ACCOUNT CARDS MANAGED BY THE TAX AUTHORITY

1. This procedure regulates the issues related to recording tax liabilities and outstanding tax liabilities for tax or payment recorded and outstanding as of January 1, 2025 and debit amounts available as of January 1, 2025 (hereinafter referred to as tax liabilities subject to recording) in the personal account card (hereinafter referred to as the tax type account card) maintained electronically by the tax authority in accordance with Part 6 of Article 319 of the Tax Code of the Republic of Armenia (hereinafter referred to as the Tax Code) based on the data reflected in the tax calculations submitted by taxpayers and in the personal account card (hereinafter referred to
as the administrative act account card) based on the data reflected in the inspection or other administrative act drawn up by the tax authority.
2. The records made in the personal account card maintained by the tax authority until January 1, 2025 regarding tax liabilities and debit amounts for tax or payment shall be stored in that card and shall be updated after January
1, 2025. are not transferred to the APC of the tax types or the APC of the administrative act, except for tax liabilities subject to registration.
3. After January 1, 2025, no entries are made in the personal account card maintained until January 1, 2025 in respect of tax liabilities and debit amounts on tax or payment.
4. Tax liabilities subject to registration are recorded in the APC of the tax types or the APC of the administrative act maintained electronically by the tax authority in accordance with Part 6 of Article 319 of the Code.
5. Among the liabilities subject to registration, tax liabilities and debit amounts on tax or payment, established by an inspection or other administrative act drawn up by the tax authority, which were registered in the taxpayer's personal account card before January 1, 2025 after being deemed irrevocable in accordance with the procedure
established by the Code, are recorded in the APC of the administrative act, and tax liabilities subject to registration The remaining part of the liabilities is recorded in the tax type AQC.
6. The initial balances of liabilities subject to recording in the tax type AQC or the administrative act AQC are recorded as of January 1, 2025. Moreover, the amounts of taxes, penalties and fines are recorded separately.
7. Changes made after January 1, 2025 in respect of liabilities subject to recording, recorded in accordance with point 5 of this Procedure, are recorded in the tax type AQC or the administrative act AQC, respectively, in accordance with the procedures for their maintenance.

10. On establishing the form and procedure for maintaining a personal account card based on the data reflected in the tax calculations submitted by taxpayers

Name of the newly adopted legislative act.

«On establishing the form and procedure for maintaining a personal account card» N 1513-Ն
https://www.arlis.am/documentview.aspx?docID=200015

Change Status:

This order entered into force on January 1, 2025.

What the changes are about:

The order specifically refers to the form of the personal account card, the procedure for maintaining the personal account card based on the data reflected in the tax calculations submitted by taxpayers, and the procedure for maintaining the personal account card based on the data reflected in an inspection or other administrative act drawn up by the tax authority. The order defines the procedures in detail.

1. To establish:
1) the form of the personal account card, in accordance with Appendix N 1,
2) the procedure for maintaining the personal account card based on the data reflected in the tax calculations
submitted by taxpayers, in accordance with Appendix N 2,
3) the procedure for maintaining the personal account card based on the data reflected in the inspection or
other administrative act drawn up by the tax authority, in accordance with Appendix N 3.
2. To establish that:
1) starting from January 1, 2025, tax liabilities arising from tax calculations (including adjusted ones)
submitted to the tax authority, regardless of the reporting period to which these liabilities relate, shall be
recorded in the personal account card maintained in accordance with subparagraph 2 of paragraph 1 of this
order,
2) tax liabilities imposed by an inspection or other administrative act drawn up by the tax authority, regardless
of the reporting period to which these liabilities relate, starting from January 1, 2025, shall be recorded in the
personal account card maintained in accordance with subparagraph 3 of paragraph 1 of this order.

3. This order shall enter into force on January 1, 2025.

11. On establishing the cases, procedure and deadlines for writing off other documents drawn up in accordance with the procedure established by law that are not considered settlement documents

Name of the newly adopted legislative act.

On establishing the cases, procedure and deadlines for writing off other documents drawn up in accordance with the procedure established by law that are not considered settlement documents N 392-Ն
https://www.arlis.am/DocumentView.aspx?docid=191005

Change Status:

This Decision entered into force on January 1, 2025 and applies to acquisitions made after January 1, 2025.

What the changes are about:

From January 1, 2025, the Resolution No. 392-N “On establishing the cases, procedure and terms of issuing other documents not considered settlement documents, drawn up in accordance with the procedure established by the legislation” entered into force, which provides for establishing the cases, procedure and terms of issuing other documents not considered settlement documents, drawn up in accordance with the procedure established by the legislation, in accordance with the Appendix to the Resolution. In particular, the Resolution provides that, in accordance with Part 13 of Article 55 of the Tax Code, the relations related to the cases, procedure and terms of issuing other documents not considered settlement documents, drawn up in accordance with the procedure established by the legislation (hereinafter referred to as the document of acquisition from an individual) in electronic form in respect of goods (except for foreign currency) purchased from an individual who is not an individual entrepreneur or a notary shall be regulated in accordance with the procedure established by the Resolution.

Based on Part 14 of Article 55 of the Tax Code of the Republic of Armenia, the Government of the Republic of Armenia decides:
1. To establish the cases, procedure and deadlines for writing off other documents drawn up in accordance with the procedure established by law that are not considered settlement documents, in accordance with the appendix.
2. This decision shall enter into force on January 1, 2025 and shall apply to acquisitions made after January 1, 2025.

12. On amending Order No. 299-N on approving the form for calculating turnover tax and the procedure for filling it out

Name of the legislative act:

Order No. 1430-N on Amending Order No. 299 of the Chairman of the State Revenue Committee under the Government of the Republic of Armenia of December 30, 2016
https://www.arlis.am/documentview.aspx?docid=201683

Change status:

This order shall enter into force on January 1, 2025.
The turnover tax calculation shall be submitted in the form approved by the appendix to this order for reporting periods after January 1, 2025.

Which legislative act was amended by the adoption of the above-mentioned act:՝

With the adoption of the above-mentioned act, a change was made to Order No. 299-N "On Approving the Form of Calculation of Turnover Tax and the Procedure for its Completion".

What the changes are about:

The amendment concerns Appendix N 1 approved by paragraph 1 of Order N 299-N “On Approval of the Form of Calculation of Turnover Tax and the Procedure for its Completion”, which regulates the form of calculation of turnover tax, in particular, the order provides for the calculation of turnover tax, the calculation of tax on income from trading (purchase and sale) activities, the calculation of tax on income from production activities, and the calculation of tax on income from other activities. The order also defines the calculation of income from activities included in the list of activities in the high-tech sector established by the Government, as well as the procedure and form for filling it out.

Appendix No. 1 approved by paragraph 1 of Order No. 299-N of the Chairman of the State Revenue Committee under the Government of the Republic of Armenia “On approving the form of calculation of turnover tax and the procedure for its completion” dated December 30, 2016, shall be reworded in accordance with the appendix.

CALCULATION OF TURNOVER TAX	Document number ________________ (to be completed by the tax authority)
1. Taxpayer registration number
2. Taxpayer
3. Taxpayer's location (place of residence)
4. Reporting period	Year	Quarter

(AMD)

5. Calculation of tax on income from trading (buying and selling) activities
5.1. Income from trading (buying and selling) activities in the reporting quarter
5.2. Tax rate on income from trading (buying and selling) activities
5.3. Amount of tax calculated for the reporting quarter on income from trading (purchase and sale) activities				10%
5.4.1. Initial value of goods that are the subject of commercial (buying and selling) activities
5.4.2. Selling expenses
5.4. Total amount of expenses incurred in the reporting quarter
5.5. Rate for the amount of expenses incurred for calculating the amount deductible from the tax amount				9.5%
5.6. Amount deducted from the tax amount in the reporting quarter
5.7. Amount not deducted from the tax amount and transferred for expenses incurred in previous quarters
5.8. Total amount deducted from tax in the reporting quarter
5.9. Minimum tax amount for the reporting quarter (1%)
5.10. Amount of tax payable calculated for the reporting quarter
5.11. Amount not deducted from the tax amount for expenses incurred and carried over to subsequent quarters
6. Calculation of tax on income from production activities
6.1. Income from production activities in the reporting quarter
6.2. Tax rate on income from production activities				7%
6.3. Amount of tax calculated for the reporting quarter on income from production activities
6.4.1. Costs directly related to the production of goods
6.4.2. Selling expenses
6.4. Total amount of expenses incurred in the reporting quarter
6.5. Rate for the amount of expenses incurred for calculating the amount deductible from the tax amount				5%
6.6. Amount deducted from the tax amount in the reporting quarter
6.7. Amount not deducted from the tax amount and transferred for expenses incurred in previous quarters
6.8. Total amount deducted from tax in the reporting quarter
6.9. Minimum tax amount for the reporting quarter (3%)
6.10. Amount of tax payable calculated for the reporting quarter
6.11. Amount not deducted from the tax amount for expenses incurred and carried over to subsequent quarters
7. Calculation of tax on income from activities carried out in the public catering sector (except for the calculation of tax on income specified in point 8 of this calculation)
7.1. Revenues from public catering activities in the reporting quarter
7.2. Tax rate on income from activities carried out in the public catering sector				12%
7.3. Amount of tax calculated for the reporting quarter on income from activities carried out in the public catering sector
7.4.1. Expenses directly related to activities carried out in the public catering sector
7.4.2. Selling expenses
7.4. Total amount of expenses incurred in the reporting quarter
7.5. Rate for the amount of expenses incurred for calculating the amount deductible from the tax amount				9%
7.6. Amount deductible from the tax amount in the reporting quarter
7.7. Amount not deducted from the tax amount and transferred in respect of expenses incurred in previous quarters
7.8. Total amount deductible from the tax amount in the reporting quarter
7.9. Minimum amount of tax for the reporting quarter (3.5%)
7.10. Amount of tax payable calculated for the reporting quarter
7.11. Amount not deducted from the tax amount and transferred to subsequent quarters in respect of expenses incurred
8. Tax calculation for income from activities in the public catering sector carried out exclusively outside the city of Yerevan
8.1. Income from activities in the public catering sector in the reporting quarter
8.2. Tax rate for income from activities in the public catering sector				6%
8.3. Tax amount calculated for the reporting quarter for income from activities in the public catering sector
8.4. Amount of expenses related to activities in the public catering sector in the reporting quarter
8.5. Rate for the amount of expenses related to activities in the public catering sector for calculating the amount deductible from the tax amount				3%
8.6. Amount deductible from the tax amount in the reporting quarter
8.7. Minimum tax amount for the reporting quarter (4%)
8.8. Amount of tax payable calculated for the reporting quarter
9. Tax calculation for income from other activities
9.1. Income from other activities in the reporting quarter
9.2. Tax rate on income from other activities				10%
9.3. Amount of tax calculated for the reporting quarter on income from other activities
9.4.1. Expenses directly related to other activities
9.4.2. Sales expenses
9.4. Total amount of expenses incurred in the reporting quarter
9.5. Rate on the amount of expenses incurred for calculating the amount deductible from the tax amount				6%
9.6. Amount deductible from the tax amount in the reporting quarter
9.7. Amount not deducted from the tax amount and transferred in respect of expenses incurred in previous quarters
9.8. Total amount deductible from the tax amount in the reporting quarter
9.9. Minimum tax amount for the reporting quarter (4.5%)
9.10. Amount of tax payable calculated for the reporting quarter
9.11. Amount not deducted from the tax amount and transferred to subsequent quarters in respect of expenses incurred

10. Types of income subject to turnover tax	Income[A] Rate[B] Tax amount[C]	Income[A] Rate[B] Tax amount[C]	Income[A] Rate[B] Tax amount[C]
11. Income from trading (purchase and sale) activities		X
12. Income from trading (purchase and sale) activities of secondary raw materials		5%
13. Income from the alienation of newspapers by editorial offices		1.5%
14. Income from production activities		X
15. Lease payments, interest, royalties		10%
16. Income from activities carried out in the public catering sector (except for income defined in point 8 of this calculation)		X
17. Income from activities carried out in the public catering sector exclusively outside the city of Yerevan (income defined in point 8 of this calculation)		X
18. Income from the alienation of other assets not included in the "Public catering" section of the economic activity classifier used in the Republic of Armenia, as well as income from other activities income		20%
19. Income from activities included in the list of activities in the high-tech sector established by the Government		1%
20. Income from the alienation of other assets, including real estate		10%
21. Income from other activities		X
22. Total		X

PART II. HEALTHCARE SECTOR

(This section of legal news includes legal news related to the healthcare sector for January 2025.)

1. On the redrafting of the appendix to the Resolution of the Government of the Republic of
Armenia of March 4, 2004 "On free and preferential medical care and services guaranteed by
the state" No. 318

Name of the legislative act:

To amend the Decision of the Government of the Republic of Armenia No. 318 of March 4, 2004 N 2093-Ն
https://www.arlis.am/documentview.aspx?docid=201663

Change status:

This Decision entered into force on January 1, 2025.

Which legislative act was amended by the adoption of the above-mentioned act:՝

With the adoption of the above-mentioned act, a change was made to the Resolution of the Government of the Republic of Armenia dated March 4, 2004 N 318-N "On free and preferential medical care and services guaranteed by the state"

What the changes are about:

TAccording to the Decision, the appendix to the Decision N 318-N “On free and preferential medical care and services guaranteed by the state” has been amended and reworded, as well as the list of socially vulnerable and separate (special) groups of the population entitled to receive free and preferential medical care and services guaranteed by the state has been approved, the procedure for financing, reimbursement and establishing prices for free and preferential medical care and services guaranteed by the state, the volumes and exceptions of services provided to citizens of the Republic of Armenia on free and preferential terms within the framework of state- guaranteed medical care and services, the procedure for referral and registration in medical organizations for receiving free and preferential medical care and services guaranteed by the state, the procedure for placing a state order for medical care and services, and the procedure for organizing state-guaranteed medical care and services on preferential terms at the expense of the state budget of the Republic of Armenia.

ON AMENDMENT OF THE DECISION N 318 OF MARCH 4, 2004 OF THE GOVERNMENT OF THE REPUBLIC OF ARMENIA AND ON VOIDANCE OF THE DECISION N 806 OF JULY 25, 2013 OF THE GOVERNMENT OF THE REPUBLIC OF ARMENIA

Based on Articles 33, 34 and 37 of the Law of the Republic of Armenia “On Regulatory Legal Acts”, the Government of the Republic of Armenia hereby decides:

1. To make the following amendments to the Resolution of the Government of the Republic of Armenia “On Free and Preferential Medical Assistance and Services Guaranteed by the State” No. 318-N of March 4, 2004::

1) To reword the Resolution of the Government of the Republic of Armenia dated March 4, 2004, No. 318-N, “On Free and Preferential Medical Assistance and Service Guaranteed by the State,” in accordance with the Appendix.

2. To repeal the Resolution of the Government of the Republic of Armenia dated July 25, 2013, No. 806-N, “On the Organization and Financing of Free Medical Assistance and Service Guaranteed by the State for Servicemen and Persons Equal to Them, Members of Their Families, as Well as Rescue Service Employees and Members of Their Families, and Servicemen of Regular and Junior Non-Commissioned Officers of Fixed-Term Compulsory Military Service, as Well as to Repeal the Resolution of the Government of the Republic of Armenia dated August 28, 2000, No. 517.”

3. This Resolution shall enter into force on January 1, 2025.

In order to effectively organize and regulate free and preferential medical care and services within the framework of state-guaranteed health care and improvement programs for the population in the Republic of Armenia, and in accordance with Article 44 of the Law “On Medical Care and Services for the Population”, the Government of the Republic of Armenia hereby decides:

1. To approve:

1) the list of socially vulnerable and separate (special) groups of the population entitled to receive free and preferential medical care and services guaranteed by the state, in accordance with Appendix N 1.

2) the procedure for financing, reimbursement and establishing prices for free and preferential medical care and services guaranteed by the state, in accordance with Appendix N 2.

3) the volumes of services provided to citizens of the Republic of Armenia on free and preferential terms within the framework of state-guaranteed medical care and services and exceptions, in accordance with Appendix N 3.

4) the procedure for referral and registration in medical organizations for receiving free and preferential medical care and services guaranteed by the state, in accordance with Appendix N 4.

5) the procedure for placing a state order for medical care and services, in accordance with Appendix No. 5.

6) the procedure for organizing medical care and services on preferential terms guaranteed by the state at the expense of the state budget of the Republic of Armenia, in accordance with Appendix No. 6.

2. The Minister of Health of the Republic of Armenia, after the entry into force of the Law of the Republic of Armenia on the State Budget of the Republic of Armenia:

1) within a month, approve the model forms of contracts concluded between the body implementing financing from the state budget of the Republic of Armenia and medical organizations.

2) within the limits of the powers provided for by the legislation of the Republic of Armenia, within a three- month period, develop and adopt, in accordance with the established procedure, relevant legal acts arising from this decision.

2. On amendments and additions to the Decision of the Government of the Republic of Armenia
No. 168 of February 28, 2019 on the issuance of permits for the use of drugs under testing.

Name of the legislative act:

On Amendments and Supplements to the Decision of the Government of the Republic of Armenia No. 168 of February 28, 2019 N 2088-Ն
arlis.am/documentView.aspx?docid=201600

Change Status:

This Decision shall enter into force on January 6, 2025.

Which legislative act was amended by the adoption of the above-mentioned act:՝

With the adoption of the above-mentioned act, a change was made to the Resolution No. 2088-N of the Government of the Republic of Armenia of February 28, 2019 "On the issuance of a permit for clinical trials, the procedures for the examination carried out for this purpose, the form of the examination conclusion, the lists of required documents and on repealing the Resolution No. 63 of the Government of the Republic of Armenia of January 24, 2002".

What the changes are about:

The decision changed, in particular, the procedure for granting permission for the therapeutic use of drugs or investigational pharmaceutical products that are in the clinical trial phase in other countries, as well as redrafted the provisions regarding the procedure for conducting their examination, the procedure for examination results, and the provisions regarding required documents.

To add a new paragraph 17 to Appendix No. 1 of the Decision No. 168-N of the Government of the Republic of Armenia of February 28, 2019 “On approving the procedures for granting permission for clinical trials, the examination procedures carried out for this purpose, the lists of required documents, and repealing the Decision No. 63 of the Government of the Republic of Armenia of January 24, 2002” with the following content:

Old version.

New version.

17. In order to use drugs or investigational pharmaceutical products that are in the clinical trial phase in other countries for the treatment of patients suffering from life-threatening diseases (hereinafter referred to as compassionate treatment), in accordance with Part 17 of Article 14 of the Law "On Medicines", permission from the authorized body is required, which is provided in the manner of granting permission for clinical trials, by submitting the documents from the list specified in Appendix No. 3 to the Resolution of the Government of the Republic of Armenia No. 168-N of February 28, 2019.

Paragraph 4 of Appendix No. 2 to the Decision shall be amended as follows:

Old version.

4. The maximum duration of the examination is 40
working days, except for the examination of clinical
trial documents conducted to examine the
bioequivalence of a reproduced drug, in which case
the maximum duration of the examination is 12
working days, and in cases where the pharmaceutical
product under examination is registered in the
Republic of Armenia or a document certifying the
authorization for clinical trials or compassionate
treatment by the competent body of a member
country of international professional organizations
established by the Government of the Republic of
Armenia in accordance with the Law of the Republic
of Armenia "On Medicines" is submitted, the
maximum duration of the examination is 7 working
days.

New version.

4. The examination is carried out according to general and simplified procedures. The maximum duration of the examination under the general procedure is 60 calendar days, except for the examination of clinical trial documents conducted to study the bioequivalence of a reproduced drug and after the registration of the drug in the Republic of Armenia, when the maximum duration of the examination is 20 calendar days. The simplified procedure is applied in the presence of a clinical trial permit issued by the competent body of a member country of an international professional organization defined by a decision of the Government of the Republic of Armenia. The maximum duration of the simplified procedure is 10 calendar days. The maximum duration of the examination of changes made to the documents submitted for the authorization of clinical trials is 30 calendar days, except for the examination of amended documents of clinical trials authorized under the simplified procedure, when the maximum duration is 5 calendar days.

Paragraph 8 should be amended as follows:

Old version.

8. The results of the examination are summarized in the organization and an expert conclusion is drawn up, which is submitted to the authorized body on the working day following the end of the examination, also notifying the applicant in writing about the results of the examination by postal delivery or via e- mail.

New version.

8. The results of the examination are summarized in the organization, and an examination conclusion is drawn up in accordance with Appendix No. 4, which is submitted to the authorized body on the working day following the end of the examination, also notifying the applicant in writing about the results of the examination via e-mail.

Paragraph 15 of Appendix No. 3 to the Decision shall be amended as follows:

Old version.

15. Original document confirming payment of the fee
for the examination of clinical trial documents.

New version.

15. A document certifying the payment of the state fee established for the examination of clinical trial
documents;

3. On making amendments to the import of medical products stipulated by the Resolution of the Government of the Republic of Armenia No. 429 of March 30, 2023.

Name of the legislative act:

On Amendments and Supplements to the Decision of the Government of the Republic of Armenia No. 429 of March 30, 2023 N 1619-Ն
arlis.am/DocumentView.aspx?docid=198543

Change status:

Subparagraph 3 of paragraph 1 of this Decision entered into force on January 18, 2025.

Which legislative act was amended by the adoption of the above-mentioned act:՝

With the adoption of the above-mentioned act, a change was made to the Resolution of the Government of the Republic of Armenia No. 1619-N of March 30, 2023 "On establishing the procedure for importing medical products into the territory of the Republic of Armenia and the list of documents necessary for the examination carried out for the purpose of importing medical products."

What the changes are about:

The decision has entered into force since 18.10.2024, with the exception of the provisions of subparagraph 3 of paragraph 1 of the decision, which shall enter into force 3 months after the official publication of this decision. The amendment particularly concerns the import of used medical products and their exceptions, namely, the decision stipulates that the period from the date of their manufacture to the moment of import cannot exceed 5 years.

To make the following amendment to Annex No. 1 of the Decision of the Government of the Republic of Armenia of March 30, 2023 “On establishing the procedure for importing medical products into the territory of the Republic of Armenia and the list of documents required for the examination carried out for the purpose of importing medical products” No. 429-N (hereinafter referred to as the Decision):

After point 4, add point 4.1 with the following content:

Old version.

New version.

«4.1. The import of used medical products is not permitted, with the exception of medical products whose compliance with the safety, quality and effectiveness indicators specified by the manufacturer is certified only by the documents specified in paragraphs 1.a. of point 2 of Annex No. 2 to this Decision and whose period from the date of manufacture to the moment of import does not exceed 5 years.»

4. On amendments and additions to the Decision of the Government of the Republic of Armenia No. 164 of February 28, 2019 on the suspension of the circulation and withdrawal (recall) of medicines, counterfeit medicines, and pharmaceutical substances

Name of the legislative act:

On Amendments and Supplements to the Decision of the Government of the Republic of Armenia No. 164 of February 28, 2019 N 36
arlis.am/documentview.aspx?docid=202236

Change status:

This Decision entered into force on January 26, 2025.

Which legislative act was amended by the adoption of the above-mentioned act:՝

The adoption of the above-mentioned act amended the Decision No. 36 of the Government of the Republic of Armenia of February 28, 2019 "On establishing the procedure for reporting, suspending circulation and withdrawing from circulation (recall) medicines, counterfeit medicines, pharmaceutical substances, herbal raw materials, and investigational pharmaceutical products that are not registered in the Republic of Armenia or do not meet quality requirements or have expired or whose registration has been revoked or suspended or imported in violation of the legislation of the Republic of Armenia"

What the changes are about:

An amendment has been made to the Decision of the Government of the Republic of Armenia No. 164-N of February 28, 2019 “On establishing the procedure for notification of an alert, suspension of circulation and withdrawal from circulation (recall) of drugs, counterfeit drugs, pharmaceutical substances, herbal raw materials, investigational pharmaceutical products that are not registered in the Republic of Armenia or do not meet quality requirements or have expired or whose registration has been revoked or suspended or imported in violation of the legislation of the Republic of Armenia”, in particular, it refers to the implementation of the recall of products subject to recall in the Republic of Armenia and its procedure, as well as an amendment has been made regarding the periods of suspension and extension of the circulation of products provided for by the Decision.

In the appendix to the Decision No. 164-N of the Government of the Republic of Armenia of February 28, 2019 “On establishing the procedure for reporting, suspending circulation and withdrawing from circulation (recall) medicines, counterfeit medicines, pharmaceutical substances, herbal raw materials, and investigational pharmaceutical products that are not registered in the Republic of Armenia or do not meet quality requirements or have expired or whose registration has been revoked or suspended or imported in violation of the legislation of the Republic of Armenia” (hereinafter referred to as the Decision), point 6 shall be amended as follows:

Old version.

6. The person implementing the recall of a product
subject to recall in the Republic of Armenia shall
establish an internal recall management procedure in accordance with this procedure.

New version.

6. In the Republic of Armenia, recall implementers shall implement the suspension of circulation and recall management in accordance with this procedure, and manufacturers and suppliers shall also implement internal procedures approved on the basis of the rules of "Good Manufacturing Practices" and "Good Distribution Practices" adopted by the state government body authorized for healthcare issues, respectively."

Add a new sentence to paragraph 15 with the following content:

Old version.

New version.

«In cases requiring additional studies, the Organization shall submit a conclusion to the inspection body on the day following the expiration of the one-month period, with appropriate justifications on the need to extend the suspension of circulation. The maximum extension period for suspending circulation is six months.

PART III. INFORMATION TECHNOLOGY SECTOR

(This section of legal news includes legal news related to the information technology sector for January 2025.)

1. Order No. 1430 of the Chairman of the State Revenue Committee of the Republic of Armenia dated October 30, 2024 on amending the rate of income from types of activities included in the list of types of activities in the high-tech sector established by the Government

Name of the legislative act:

On Amendments to Order No. 1430 of the Chairman of the State Revenue Committee of the Republic of Armenia of October 30, 2024 N 1724-Ն
https://www.arlis.am/documentview.aspx?docid=201668

Change status:

This order is effective from January 1, 2025.

Which legislative act was amended by the adoption of the above-mentioned act:՝

With the adoption of the above-mentioned act, an amendment was made to the Order No. 1430 of the Chairman of the State Revenue Committee of the Republic of Armenia dated October 30, 2024 "On Amending the Order No. 1430 of the Chairman of the State Revenue Committee of the Republic of Armenia dated October 30, 2024"

What the changes are about:

The amendment to this order specifically relates to the types of income subject to turnover tax, in particular, income from activities included in the list of high-tech activities established by the Government, the rate of which has been set at 1%.

1. In accordance with paragraph 1 of Order No. 1430-N of the Chairman of the State Revenue Committee of the Republic of Armenia dated October 30, 2024 “On Amending the Order No. 299-N of the Chairman of the State Revenue Committee under the Government of the Republic of Armenia dated December 30, 2016” of the Chairman of the State Revenue Committee under the Government of the Republic of Armenia, line 19 of the Turnover Tax Calculation Form approved by Appendix No. 1 of Order No. 299-N of the Chairman of the State Revenue Committee under the Government of the Republic of Armenia dated December 30, 2016 shall be reworded as follows:

10. Type of income subject to sales tax	Income[A]	Income[A]	Income[A]
19. Income from activities included in the list of high-tech activities established by the government		1%

2. On state support for the high-tech sector

Name of the newly adopted legislative act

Law "On State Support for the High-Tech Sector"
https://www.arlis.am/DocumentView.aspx?DocID=201049

Admission status:

What the changes are about:

The purpose of the law is to review the state support toolkit and the framework of tax incentives for the high-tech sector, as well as for scientific research activities, with the aim of creating more favorable conditions for ensuring progressive development in the aforementioned areas. The law proposes to establish tax incentives and the following areas of budget support, including:

1) to redefine and revise the framework of tax incentives provided for by the current legislation for economic entities operating in the high-tech sector,

2) to expand the framework of tax incentives for scientific research and experimental development (R&D) activities. Moreover, the tax incentives proposed in this direction will apply not only to economic entities operating in the high-tech sector, but also to economic entities operating in all areas of scientific research and experimental development.

In particular, tax incentives are proposed, including a 2.5-fold reduction in the turnover tax rate, setting 2 percent instead of 5 percent, professional Provision of the possibility of additionally reducing gross income for the purpose of taxation with profit tax in the amount of 200 percent of the salary paid to the staff performing the work, but not more than 50 percent of the calculated tax base, as well as a reduction in the income tax rate by half for the salary paid to the professional staff involved in scientific research and experimental development activities and income equivalent thereto, from 20 to 10 percent, and other privileges prescribed by law. With the adoption of the Law "On State Support for the High-Tech Sector", relevant amendments and additions will also be made to the related "Tax Code of the Republic of Armenia", which is conditioned by the revision of the framework of state support instruments and tax privileges for the high-tech sector, as well as for scientific research activities, and the formation of favorable conditions for the implementation of scientific research activities.

3. Draft law on defining the list of types of activities subject to state support in the high-tech sector

Draft name:

On establishing the list of types of activities subject to state support in the high-tech sector https://www.e-draft.am/projects/8212/about

Discussion period:

The draft decision was discussed on the unified website for the publication of draft legal acts from January 16, 2025 to January 31, 2025.
The decision is currently in the process of being finalized.

What the changes are about:

As a result of the adoption of the draft, the list of types of activities in the high-tech sector subject to state support will be approved, according to which economic entities may benefit from state support and tax privileges in the sector if they meet the requirements of the Law “On State Support for the High-Tech Sector” and the Tax Code of the Republic of Armenia.

The draft envisages establishing the list of types of activities in the high-tech sector subject to state support, according to which, within the framework of the Law “On State Support for the High-Tech Sector”, support will be provided to those economic entities that (among other requirements) have formed at least 90 percent of the sales turnover from all types of activities declared in the tax calculations for value added tax and (or) turnover tax during the reporting period for the provision of state support from the total of the types of activities in the high-tech sector defined in the annex to the draft.

HO-499-N of December 4, 2024 “On Amendments and Addenda to the Tax Code of the Republic of Armenia” and “On the Tax Code of the Republic of Armenia” The adoption of Law HO-500-N of December 4, 2024 on Amendments to the Law "On Amendments to the Tax Code" provides that for economic entities operating under the classifications of economic activities established by the Draft and that have not made any changes to these classifications in their reports submitted to the tax authority for July-December 2024, the deductions specified in Article 123, Part 2, Clause 2 and the second paragraph of the same part of the Tax Code of the Republic of Armenia may also be applied to relations arising from January 1, 2024.

ON DETERMINING THE LIST OF TYPES OF ACTIVITIES SUBJECT TO STATE SUPPORT IN THE HIGH TECHNOLOGY SECTOR

Based on Part 1 of Article 5 of the Law "On State Support for the High-Tech Sector", Sub-paragraph "b5" of Part 1 of Part 4 of Article 109 of the Tax Code of the Republic of Armenia, Point 10 of Part 1 of Article 113, Point 2 of Part 2 of Article 123 and Point 8 of the Appendix to Part 1 of Article 258 of the Tax Code of the Republic of Armenia, the Government of the Republic of Armenia hereby decides:

To establish the list of types of activities subject to state support in the high-tech sector, in accordance with the Appendix. To establish that the scope of activities of economic entities applying for state support must correspond to or include the activities defined by the classifiers of types of economic activities specified in the Appendix to this decision, and at least 90 percent of the sales turnover from all types of activities declared in the tax calculations for value added tax and (or) turnover tax in the reporting period for the provision of state support may be formed from the sum of the types of activities in the high-tech sector defined in the Appendix. To establish that

1) In the case of applying the deductions defined in point 2 of part 2 of Article 123 of the Tax Code of the Republic of Armenia and the second paragraph of the same part to relations arising from January 1, 2024, economic entities applying for state support must not have made any changes in terms of the classifiers of economic activities in their reports submitted to the tax authority for at least July-December 2024.

2) January 2025 Starting from 1, during the period of requesting state support, economic entities applying for state support must not have made any changes in their reports submitted to the tax authority regarding the classifiers of economic activities.

This decision shall enter into force on the day following the date of official publication.

Appendix
to the Resolution of the Government of the Republic of Armenia of 2025
_______________ _____

LIST OF TYPES OF ACTIVITIES SUBJECT TO STATE SUPPORT IN THE HIGH TECHNOLOGY SECTOR

Code	Name of activity type
C26	Manufacture of computers, electronic and optical equipment
C26.11.0 C26.12.0	Manufacture of electronic components Manufacture of assembled electronic boards
C26.20.0 C26.30.0 C26.40.0	Manufacture of computers and peripherals Manufacture of communication equipment Manufacture of consumer electronic equipment
C26.5	Manufacture of measuring, checking, testing and navigational instruments and devices. Manufacture of watches (hand and other)
C26.51.0 C26.60.0 C26.70.0	Manufacture of measuring, checking, testing and navigational instruments and devices Manufacture of radiation, electromedical and electrotherapeutic equipment Manufacture of optical instruments and photographic equipment
C28.1	Manufacture of general-purpose machinery
C28.99.0 C29.31.0	Manufacture of other special-purpose machinery, not included in other groups Manufacture of electrical and electronic equipment for motor vehicles and their engines
C30.30	Manufacture of aircraft, spacecraft and other flying machines
C30.30.1 C30.30.2	Manufacture of aircraft and spacecraft Manufacture of other flying machines
C30.30.9 C30.4 J58.2	Manufacture of parts for aircraft, spacecraft and other flying machines Manufacture of combat vehicles Publishing of computer programs
J58.21.0	Publishing of computer games
J58.29.0 J62.0 J62.01.0 J62.02	Publishing of other computer programs Software development, consultancy and related activities in the field of computer technology Software development Consulting activities in the field of computer technology
J62.02.1	Design of electronic systems, testing and development
J62.02.9	Consulting activities in the field of computer technology not included in other classifications
J62.03.0 J62.09.0	Computer systems management activities Other activities in the field of information technology and computer equipment
J63	Provision of information services
J63.1	Data processing, information distribution on the network and related activities, activities related to web portals
J63.11	Data processing, information distribution on the network and related activities
J63.11.1	Development and use of databases and information resources
J63.11.3	Services related to software in the operational mode: maintenance of application programs and system software and hardware
J63.12.0 M71.12.5 M72	Activities related to web portals Design and testing of integrated circuits Scientific research and development
M72.1	Scientific research and experimental development in the field of natural and technical sciences
M72.11.0	Scientific research and experimental development in the field of biotechnology
M72.19 M72.19.1	Other scientific research and experimental development in the field of natural and technical sciences Scientific research and experimental development in the field of natural sciences
M72.19.2	Scientific research and experimental development in the field of technical sciences and technologies
M72.20.0	Scientific research and experimental development in the field of social sciences and humanities

PART IV. WORKING SECTOR

(This section of legal news includes legal news related to the labor sector for January 2025.)

1. "On Amendments to the Law "On Funded Pensions"" HO-108-N of February 28, 2024 on Amendments and Supplements to the Law on Social Payments"

Name of the legislative act:

«On Amendments and Supplements to the Law "On Funded Pensions" HO-108-N of February 28, 2024 ՀՕ-495-Ն
https://www.arlis.am/documentview.aspx?docid=201006

Change status:

This Decision entered into force on January 1, 2025.

Which legislative act was amended by the adoption of the above-mentioned act:

The adoption of the above-mentioned act amended the Law "On Amendments to the Law "On Funded Pensions" HO-108-N of February 28, 2024

What the changes are about:

The law amended the Law "On Amendments to the Law "On Funded Pensions" HO-108-N of February 28, 2024, according to which employees who are obliged to make social payments under this Law (tax agents who are obliged to calculate and transfer social payments for them) are liable for failure to make social payments or for late payment. In case of failure to make a social payment within the established period, the employee (tax agent who is obliged to calculate and transfer social payments for him) shall pay a penalty for each day of delay in the amount and in the manner prescribed by Article 401 of the Tax Code of the Republic of Armenia. Also, from January 1, 2025, the penalty shall be paid in the amount of 0.075 percent for each day of delay, including if the calculation of penalties began before the entry into force of this Law.

Article 71 of the Law HO-244-N of December 22, 2010 "On Funded Pensions":

1) The first and second paragraphs of Part 1 shall be amended as follows:

Article 71. Liability for failure to make or late payment of social payments

Old version.

1. Employees who are obliged to make social payments under this Law (tax agents who are obliged to calculate and transfer social payments for them) are liable for failure to make social payments or for late payment. In case of failure to make a social payment within the established period, the employee (tax agent who is obliged to calculate and transfer social payments for him) shall pay a penalty for each day of delay in the amount and in the manner prescribed by Article 401 of the Tax Code of the Republic of Armenia. Penalties levied for failure to make social contributions or late payment are transferred to the person maintaining the register of participants as a cumulative allocation, on whose account the shares of the mandatory pension fund to which cumulative allocations are currently being made for (in favor of) the participant are acquired. The shares of the mandatory pension fund of the participant on account of the levied (paid) penalties are determined based on the amount of the social contribution calculated for the given participant in the total amount of the social contribution withheld (paid) from the participants' income (including those detected by inspection).

New version.

1. Employees who are obliged to make social payments under this Law (tax agents who are obliged to calculate and transfer social payments for them) are liable for failure to make social payments or for late payment of social payments. In case of failure to make a social payment within the established period, the employee (tax agent who is obliged to calculate and transfer social payments for him) shall pay a penalty for each day of delay in the amount and in the manner prescribed by Article 401 of the Tax Code of the Republic of Armenia.

2) Part 4 should be rewritten as follows:

Old version.

4. In case of delay in payment of social contributions beyond the established deadline, the tax authority shall make a decision to collect the unpaid amount from the person who is obliged to calculate and transfer (collect) social contributions under this law (hereinafter referred to as the social contribution payer) and shall duly notify the latter thereof.

New version.

4. In case of delay in payment of social payments beyond the established deadline, the tax authority shall ensure the enforcement of unpaid social payments and penalties established for them under this Law, as well as implement measures aimed at compulsory enforcement in accordance with the procedure established by the Tax Code of the Republic of Armenia.