Those Going Abroad for Work Will Not Be Taxed in Armenia for the Legally Established Period. A New Draft is Being Developed

A draft legislative amendment is currently being developed concerning the taxation regulations of income received by resident individuals of Armenia from contracts for work or services performed outside the territory of Armenia.

This was reported to Auroranews by the State Revenue Committee. The draft aims to establish that Armenian resident individuals who earn income from work done outside the territory of Armenia (from outbound work) under labor or civil contract agreements will not be obligated to pay additional taxes in Armenia for the legally established period, provided that income tax has been calculated and paid in the country where the income was received.

In other words, according to the new legislative initiative, Armenian citizens who go abroad for work will not be taxed in Armenia for the legally established period. They will be exempt from the obligation to pay income tax if the income is received in the context of a labor or civil contract. If the State Revenue Committee receives information from tax authorities of other countries during the legally established period that an Armenian citizen has paid income tax in the country of income receipt, the obligation to pay additional tax in Armenia will not arise, regardless of the rate at which income tax was levied in the country of income acquisition.

The draft will be presented for public discussion in the coming days on the website www.e-draft.am. Until the relevant legislative changes are implemented, the SRS will refrain from conducting tax administration activities, including prohibitions, collections, etc. Furthermore, those who have received notifications from the SRS and have diligently paid their income tax will be refunded the amounts paid.

The draft is expected to be widely discussed with outbound workers through regional administrations and local self-governing bodies.