Armenian companies creating new jobs to have their profit tax reduced

YEREVAN, March 7. /ARKA/. The Armenian government approved on Thursday a new procedure for reducing profit tax for companies that will create new jobs. Economy Minister Tigran Davtyan, explaining the procedure, said the reduction will be in an amount not exceeding 30% of income tax.

He said that it will spur creation of new jobs and will lure out economic entities from shadow. 

“We are introducing a new system of preferences, which implies contraction of profit tax for those companies creating new jobs,” he said. “This approach is described in the profit tax law, and today we specified procedures.”

Davtyan said the new procedure also implies estimation of investment programs in terms of creation of new jobs. After estimation and approval by the government, profit tax will be reduced, if new jobs created. 

“This preference supplements the low of the instruments and mechanisms that we offered to our entrepreneurs, manufacturers and exporters recently,” he said.    

The minister stressed that these preference is intended only for industrial enterprises, and it does not apply to companies providing commercial and financial services. 

He also said that a well-thought-out system of checks for investment programs which will be carried out by the economy and finance ministries as well as the State Revenue Committee will leave no room for bogus jobs. -0-