Good News for Entrepreneurs: Tunyan

MP Babken Tunyan from the "My Step" faction of the National Assembly writes on his Facebook page: "Today at 17:00, there will be an extraordinary session of the National Assembly initiated by the government, during which a significant issue concerning our entrepreneurs will be resolved.

1️⃣ Taxpayers will be exempt from the obligation to make profit tax prepayments for the second quarter of 2020. Let me remind you that the deadline was June 20.

2️⃣ The system of profit tax prepayments will be completely revised, establishing that each quarter's profit tax prepayment is done at the minimum of either 20% of the profit tax calculated based on the previous year's results or 2% of the previous quarter's sales turnover. Simultaneously, the requirement to submit a declaration for choosing any method of prepayment will be abolished.

✅ This change is not temporary but permanent. This means that entrepreneurs will no longer have to submit a declaration every year by March 20 indicating which option they will use to pay the profit tax. The option that is favorable for the entrepreneur will be automatically selected.

Thus, the adoption of this project is somewhat a counter-crisis measure—tax holidays that will help alleviate the liquidity issues faced by entrepreneurs due to the impact of the coronavirus by exempting them from the obligation to make profit tax prepayments for the second quarter. On the other hand, the profit tax prepayment system will become more flexible and favorable from the perspective of the current liquidity of economic agents."