Expert finds it necessary to lower turnover tax for trade companies to 3% in Armenia to foster smes
02.07.2013,
17:30
Vazgen Safaryan, chairman of Armenia’s Union of Domestic Commodity Producers, speaking today at a news conference, pointed out the necessity of lowering the turnover tax for companies with annual turnover of AMD 58 million from present 3.5% to 3%.
YEREVAN, July 2. /ARKA/. Vazgen Safaryan, chairman of Armenia’s Union of Domestic Commodity Producers, speaking today at a news conference, pointed out the necessity of lowering the turnover tax for companies with annual turnover of AMD 58 million from present 3.5% to 3%.
He is convinced that this will spur development of small and mid-scale businesses in the country
“Even this 0.5-percent difference will be significant and will spur development of small and medium enterprises in the country,” he said.
The expert thinks there are very few incentives in Armenia for SMEs development.
In his opinion, small enterprises with no more than five employees and companies with annual income of about 12 or 13 million drams should be completely exempted from taxes.
The turnover tax was introduced in Armenia on January 1, 2013 for companies with annual turnover of up to AMD 58.35 million. Before that, such companies paid profit or income tax.
Under the new law, turnover tax is paid every year. It is equal to 3.5% of annual income for trade companies, to 20% for notary offices, 10% for royalty, leasing, property and asset alienation and 5% for other activities. ($1 – AMD 410.81). ---0----
