Conclusion on Canceling Income Declaration

The Government of Armenia issued a negative conclusion on the legislative proposal to cancel the income declaration system for individuals during its meeting today, March 13. The proposal was presented for discussion by the "Armenia" faction, suggesting corresponding amendments to the Tax Code.

The Ministry of Finance has stated that the proposal to cancel the income declaration system for individuals is fundamentally unacceptable. "The proposal does not align with the policy directions set forth in the Government's 2021-2026 program, which aims to implement an effective income declaration system for individuals, facilitating the introduction of a 'social credit' system widely used in international practice," noted the Ministry.

It is reminded that employees, as well as citizens receiving taxable income under civil law contracts, must submit their declarations by May 1. The deadline for submitting declarations was later extended until November. If the declarant has incurred social expenses, they have the right to compensation (with a maximum amount of 100,000 AMD per year).