Weekly Client Alert # 15

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BILLS IN PARLIAMENT

 

The Consequence of Omission of the Deadline for the State Registration of Rights of Real Estate

The draft, approved on June 11, 2020, proposes to consider the omission of 30 days for the registration of real estate rights under the RA Law “On State Registration of Property Rights” as respectable if the person (applicant) justifies the fact of missing the deadline for reasons beyond their control (in the absence of their fault).

The deadline for submitting an application for respecting the omission of the state registration deadline is 15 working days upon the elimination date thereof.

In the case of non-transaction parties, the deadline for submitting the application is 15 working days upon the day when they knew or were obliged to know about the transaction.
The bill has been proposed by the Government and is still in the National Assembly.

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GOVERNMENT DECREES

 

The State of Emergency Continues

It has been resolved to extend the state of emergency declared in the Republic of Armenia on March 16, 2020, and extended until June 13 until July 13, 2020. Henceforth, the activities of certain legal entities and individual entrepreneurs (including sales by individuals in the markets of agricultural products) at the place (address) may be may temporarily banned by the commandant’s decision if there is a doubt about the presence of infection or in case of detection of infection among the employees.

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Amendments to The Labor Code

The draft, approved on June 11, 2020, proposes to ban the change of essential working conditions of a person who actually takes care of a child but who is not on a leave, during the entire period of care for a child under one year of age under less favourable conditions (except for the title of the position and (or) modes) in the event of changes in production volumes, conditions for organizing economic, technological and (or) work.

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Large-Scale Changes in the Sphere of Subsoil Use

The draft of legislative changes, approved on June 11, 2020, proposes to obtain the permission of an authorized body in case of pledging the right of subsoil use, as well as to allow the right of subsoil use to be pledged, if it guarantees obligations arising from the contract of a target loan, and if the funds allocated under this loan agreement are designed to be used to perform the work and obligations of the subsoil user.

Also, among other things, the draft suggests that in the event of an appeal against an administrative act on the termination or suspension of the right of subsoil use, the execution of this administrative act should not be suspended.

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TAX LEGISLATION

 

Environmental Tax Sharing

It is proposed to make sharing from the environmental tax paid by the companies that have the subsoil use right in the Republic of Armenia and to reflect such sharing in the budgets of those communities where the business activities of these companies have a harmful impact. The amount of sharing will be calculated by the authorized body in the field of the environment.

The National Assembly at the second reading adopted the draft amendment to the law.

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New Procedure for Calculation of Real Estate Tax

It is suggested to tax real estate based on the cadastral value of real estate close (similar to) to its market value.

The tax amount will be calculated based on the real estate close to the market value cadastral valuation procedure.

It is planned to switch to the new tax system within four years and fully establish the system from 2024 on.

The draft of amendments to the law has not yet been included in the agenda of the National Assembly.

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