Employees of micro-enterprises in Armenia will no longer benefit from special tax regime

YEREVAN, July 28. /ARKA/. A number of tax changes that took effect in Armenia on July 1, 2023 concern micro-enterprises, Deputy Finance Minister Arman Poghosyan said today, presented the details at a press conference.

He said the changes are part of a plan designed to make tax liabilities under alternative taxation regimes comparable to the main regime.

In particular, according to the changes, the incomes of employees of micro-enterprises will be taxed on general grounds, i.e. 20% of the income, while previously a fixed rate of AMD 5 thousand was in effect.

According to Poghosyan, the 20% income tax will be deducted from an employee's wage. It will not be paid by micro-entrepreneurs.

He said that at the moment there are about 35 thousand such employees in the country. The deputy minister pointed out that highly qualified specialists would register micro-enterprises and continue to work for their companies, just providing them with services in a different tax regime.

He said after these tax changes took effect, it is expected that within a certain period of time these specialists will cease to be micro-entrepreneurs.

In addition, a number of restrictions have come into effect, due to which companies that are provided services by micro-entrepreneurs will not be able to write off taxes due to documents provided by micro-entrepreneurs.

According to Poghosyan, this will result in clarifying the actual number of micro-entrepreneurs and as a result, their total number is expected to decrease. -0-