New Income Tax Tariffs Under New Draft Code

  • Country - 28 September 2016, 17:36
Today the National Assembly has discussed in an extraordinary session the draft tax code for second reading.

The keynote speaker Vakhtang Mirumyan, deputy head of State Revenue Committee, said the members of parliament and entrepreneurs have come up with a number of suggestions, proposals were identified based on discussions in government, based on which the draft code has been revised. The majority of the proposals by members of parliament has been accepted fully or partly.

Mirumyan dwelled on the issue of the tax on income which has caused a backlash among entrepreneurs.

“The revision envisages the following: a 23% tariff is proposed for a monthly salary under 150,000 AMD where the draft code provides for 120,000 AMD and down. This means that instead of the current 24.4% and 26% the tax on monthly salary ranging between 120,000-150,000 will be 23%. The second tariff which is 28% is proposed to apply to 150,000-2,000,000 AMD instead of the range between 120,000 AMD and 1,000,000 AMD envisaged in the first draft. For salaries 2,000,000 AMD and up it is proposed to apply the existing tariff which is 26%,” Vakhtang Mirumyan says.

He announced that this means that the effective tariff envisaged by the first draft is refused from 25.3% to 24.9%.