I Would Like a Limit on Large Structures with Low Income: Sukiasyan

I am very cautious regarding this issue. A 2.5 percent revenue is an extraordinarily high amount. In the National Assembly, addressing the proposed amendment to the Tax Code by the government, Khachatur Sukiasyan, a member of the “Civil Contract” faction, stated.

According to the proposal, the regulations of Article 123 of the Tax Code allow institutions such as libraries, museums, public schools, boarding houses, nursing homes, orphanages, medical establishments, as well as non-profit organizations to reduce their corporate income tax based on the value of their assets, works performed, or services provided, but not more than 0.25 percent of their gross income for the tax year. The proposal is to increase the threshold tenfold to 2.5 percent.

Sukiasyan explained, “There are many organizations that generate a significant amount of revenue, but their profit is only 2 percent. Therefore, if they wish to utilize the 2.5 percent, we are talking about organizations with very high revenue, and we need to set a specific limit there, because a large revenue organization with a turnover of 100 or 200 million dollars generates a considerable amount with 2.5 percent, considering this pertains to revenue.”

The deputy also noted: “I would like a limitation on large entities that have revenue but low income. There are organizations where the income is 30 percent of revenue, and there are organizations with very high revenue but profits of only 1-2 percent due to their very large turnover.”