How to Use Social Expense Compensation

The State Revenue Committee (SRC) has presented how to utilize social expense compensation.

Step 1: Determine if you are eligible for compensation
You can benefit from social expense compensation if you are a resident citizen of the Republic of Armenia, file an annual income declaration, pay income tax, and during the reporting year, you or your family members (spouse, parents, and children) have incurred social expenses in the fields of healthcare and/or education.

Step 2: Check if your payments are eligible for compensation
Educational expenses are reimbursable if you have paid for education in kindergartens, schools, colleges, universities, music and art schools, sports schools, and other extracurricular institutions, as well as guaranteed other extracurricular or non-formal educational programs. Rental payments for textbooks for grades 5-12 are also eligible for reimbursement. Health care expenses are reimbursed if you have obtained a health insurance package from a local insurance company or paid for dental services.

Step 3: Request an invoice for your payments
To benefit from social expense compensation, it is mandatory to request an invoice with your details from the service provider when incurring social expenses, except for rental payments for textbooks, for which proof of payment is not required. Remember that payments for social expenses must be made in a cashless manner in order to qualify for reimbursement.

Step 4: Submit an annual income declaration
The declaration is submitted through the Unified Electronic Services System for Individuals by following these steps: obtain electronic identification and electronic signature, log into the system and choose your preferred identification method, register with the tax authority and obtain a Tax Identification Number through the same system, select the form “Calculation Declaration for Income Tax and Social Payment” in the declarations section, fill it out, electronically sign it, and send it to the SRC.

Step 5: Submit an application and receive social expense funds
After submitting the declaration, you can apply and receive reimbursement for the social expenses paid by following these steps: log into the Unified Electronic Services System for Individuals, select the form “Application for Refund of Funds from a Unified Account” from the declarations, fill in your bank account number and the amount to be reimbursed, and register the application. After registering the application, a window will pop up where you need to click the “Submit/Return” button, sign the application in the filled-out declarations section, and submit it to the SRC.