No More Fines for Delayed Tax Payments in Armenia

The Armenian government is set to eliminate fines for delayed tax payments. The proposed amendments to the Administrative Violations Code were approved in the first reading at the National Assembly, receiving 65 votes in favor and 30 abstentions.

Arthur Manukyan, Deputy Chairman of the State Revenue Committee, stated that the law currently imposes liability for late tax payments ranging from 10 to 20 times the minimum wage. He explained, “In conjunction with this liability measure, we believe there are sufficiently expanded tools for ensuring compliance with tax obligations, and the law also establishes a mechanism for calculating penalties. However, this administrative liability measure has shown in practice that it does not significantly impact the taxpayer's subsequent behavior, unlike other measures of influence. Therefore, we propose to recognize this article of the code as void and not apply this liability measure.”

Manukyan noted that it generally becomes clear during administrative proceedings that non-payment by responsible individuals is primarily due to a lack of funds.