Salaries of Armenia’s military servants will be subject to income tax levy

YEREVAN, October 25. /ARKA/. Armenia’s National Assembly approved amendments to the law “On income tax” in the first reading on Thursday.

In compliance with the new amendments, the salaries of rescuers, military servants and the staff equalized to career military offices will be also subject to income tax levy. 

Presenting the bill, Finance Minister of Armenia Vache Gabrielyan noted that the legislative initiative is proceeded to meet the single income tax regulation. 

“As a result, taxpayers will have equal obligations, regardless of their activity nature,” he said.

Mr Gabrielyan also said the actual income of military servants will not tumble, as their salaries will be increased in accordance with the new tax. 

From January 1, 2013 a new law on income tax will be introduced. Today an employer has to pay most of social charges of each employee, however, after January 1, social charges will be withdrawn directly from employees’ salaries. All employers will have to raise salaries of their workers in order to save their real income of their workers.

The introduction of the new law is related to the roll-out of funded pension system in Armenia, January 1, 2011. -0-