Weekly Client Alert # 16

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GOVERNMENT DECREES

 

Twentieth Event to Neutralize the Economic Consequences of Coronavirus

During the session of 18.06.2020, the Government adopted the package of the twentieth action to neutralize the economic consequences of the Coronavirus. The event is targeting the areas of the private sector which were affected by the spread of coronavirus. In particular, it is aimed to provide financial support to private entrepreneurs, engaged in these areas (hotel services, public food services, tourism, pre-school education, sports services, entertainment and leisure, cinemas, photography services, car rent, art industry and casino), their employees as well as to employees who work under service contracts. The one-time assistance is provided in the amount of the minimum wage (which is AMD 68,000).

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FINANCIAL SECTOR

 

Refinancing Rate Cut

At its 16 June, 2020 meeting the Board of the Central Bank of Armenia decided to cut the refinancing rate by 0.5 percentage, thus fixing it at 4.5%.

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Amendments to the Institute of Leasing

In the Weekly Client Alert circulated on 11 May, we addressed pending amendments to the legislative framework of leasing, in particular – the introduction of the concepts of reverse leasing and secondary leasing. On 18 June the legislative package passed second reading.

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TAX LEGISLATION

 

Amendments on Prepayment to Income Tax

It is proposed to exempt income taxpayers from making advance payments on income tax for the second quarter of June 2020, the deadline of which is June 20, 2020.

It is planned to review the system of advance payments for corporate income tax. From now on, there is no need to submit an application for the option of alternative payment until March 20 of each year. Prepayment for each quarter will be made in the amount of the minimum from 20% of the amount of income tax for the previous year or 2% of the amount of sales turnover for the previous quarter.

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

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