Zangezur Copper-Molybdenum Combine Does Not Operate at a Loss: SSC Denial

The State Revenue Committee, in response to the recent widespread publications in the National Assembly of the Republic of Armenia and media regarding the activities of taxpayers who have obtained permits in the metal mining sector, finds it necessary to state the following:

“Of the 28 taxpayers with permits to operate in the mining sector, only 8 were actively operating in 2019, and 9 in 2020. Despite the fact that not all of the mentioned entities operate profitably, the active taxpayers involved in mining operations declared 10.9% of the total profit tax for 2018, and 11.1% for 2019. As for 2020, no data has been submitted yet, as taxpayers are required to report the profit tax calculation for the previous year by April 20, 2021, inclusive. Considering this circumstance, at this time, only one taxpayer has submitted a profit tax calculation.

In regard to the media publications about Zangezur Copper-Molybdenum Combine LLC, the SSC finds it necessary to inform that the company has been the largest taxpayer declaring profit tax in the Republic both in 2018 and in 2019. Therefore, the assumptions that the enterprise operates at a loss do not reflect the reality.”