Payments for Car Sales Will Be Collected Immediately Rather than a Year Later

In Armenia, payments from car sales will be collected immediately rather than a year after the sale. The National Assembly today passed a draft law amending the Tax Code in the first reading, with a vote count of 60 in favor and 6 against.

Presenting the draft, Head of the State Revenue Committee Rustam Badasyan noted that under the current law, if more than 365 days have passed since the sale, the income tax is collected at a rate of 1 percent less than the sale value (but no less than 150 drams per horsepower). However, in practice, car sellers tend to evade these payments. This approach puts diligent taxpayers at a disadvantage.

If the draft law is also approved in the second reading, payments will be collected immediately at the time of the transaction. Instead of income tax, a state duty will be established (150 drams per horsepower regardless of the vehicle's value), and its collection will be entrusted to the Police of Armenia.