Starting July 1, Employers in Microbusiness Sector Will Pay 20% Income Tax Instead of 5000 Drams per Employee: Grigoryan

Starting July 1, employers in the microbusiness sector will now pay a 20% income tax instead of 5000 drams for each employee. This was stated by Samson Grigoryan, a member of the political council of the 'Living Country' party, on his Facebook page.

“With all the joy and populism surrounding the taxation of microbusiness, this area has turned into yet another burst bubble. The authorities explain this through the growth of the shadow economy. However, there is no mention of the inactivity of state-funded organizations that are supposed to combat this shadow economy. It turns out that, instead of constantly incompetent authorities, once again, the citizens of Armenia and entrepreneurs will bear the responsibility,” he wrote.

“Initially, the system was introduced by destroying the well-established concept of Family Business, ignoring numerous excellent proposals. One of the proposals I discussed long ago was to tax employees involved in the light industry sector just 5000 drams. This would help bring social program beneficiaries into the workforce, providing them with greater income and relieving the state of a major burden while developing light industry in Armenia. But... as always, we ended up with yet another failed project by the authorities,” he added.