Weekly Client Alert #33

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Government Decrees

 

The End of the Income Tax Refund Law

On August 12, 2021, the Government of RA approved the project of amendments to the Tax Code. This project especially suggests making amendments in the article 160 of the Tax Code of RA (better known to the public as “the law of income tax return”), by which the income tax in the amount of interest paid by а person for the mortgage servicing:

  1. will not be returned for the mortgages received after 1st July 2022, if the real estate is located (is constructing or will be constructed) in the first zone included in the administrative area of the city Yerevan, defined by the decision of the Government. 
  2. will not be returned for the mortgages received after 1st January 2023, if the real estate is located (is constructing or will be constructed) in the second zone included in the administrative area of the city Yerevan, defined by the decision of the Government. 
  3. will not be returned for the mortgages received after 1st July 2023, if the real estate is located (is constructing or will be constructed) in the third zone included in the administrative area of the city Yerevan, defined by the decision of the Government. 
  4. will not be returned for the mortgages received after 1st January 2025, if the real estate is located (is constructing or will be constructed) in the zone included in the administrative area of the city Yerevan defined by the decision of the Government and not mentioned in the 1st, 2nd, 3rd sub-clauses.

The Law will enter into force on January 1, 2022, in case of approval of the draft Law by the RA National Assembly.

However, these restrictions will not be applied for the apartment buildings, apartments or individual residential houses constructed (are constructing) under the construction permissions received by the decisions made before 1st January 2022.

Find more here

 

The Criterias for Considering a Law-Abiding Taxpayer

On August 12, 2021, the State Revenue Committee submitted a draft to the Government of the Republic of Armenia, which defines the criteria for being considered a law-abiding taxpayer.

According to Article 293.1 of the RA Tax Code, if special criteria are met, the taxpayer’s law-abiding status is certified by providing an appropriate certificate. For taxpayers who have a certificate of a law-abiding taxpayer, the RA Tax Code and other legal acts may establish favorable conditions for the implementation of administrative process.

Pursuant to draft Law a law-abiding taxpayer certificate is issued by a VAT taxpayer organization or sole entrepreneur in case of simultaneous fulfillment of 8 criteria for the results of actual activities during the specific time period, which you can get acquainted with here.

 

Government Support to the Employers Who Hire Former Servicemen

On August 12, 2021, the Minister of Social Affairs and Employment of RA presented to the Government of RA a project of a decision on the approval of the order of provision of the state support to employers who have employed former military personnel (equivalent persons) injured and recognized as disabled as a result of military operations.  

For each employed person, the employer is provided assistance in the amount of income tax calculated and paid from the salary of this person, in quarterly terms - a maximum of AMD 100,000 and a one-time compensation - in case of need to adapt the workplace to the employer in the amount of no more than AMD 500,000.

Find more about the order of providing assistance here.