Armenian parliament rejects opposition bill to abolish mandatory income tax declaration
YEREVAN, April 15. /ARKA/. On Tuesday, during a regular session, the National Assembly of Armenia rejected a draft law proposed by the opposition "Armenia" faction, which sought to abolish the universal requirement for citizens of the Republic of Armenia to submit income declarations.
Presenting the proposed amendments to Armenia’s Tax Code, MP Tadevos Avetisyan from the "Armenia" faction argued that the declaration requirement is outdated, incomplete, and disproportionate. He said it would impose an unnecessary administrative burden on citizens and effectively turn them into “targets for fines.”
“This is also why, with the legal deadline expiring in the coming days, only 5% of those required to submit declarations have actually done so. If a declarable citizen has unregistered shadow income not reflected in the unified income tax system, they won’t disclose it in the annual declaration either. Therefore, claims that this system will help reduce the shadow economy are false,” Avetisyan stated.
Following the vote, the opposition's proposal was rejected: 59 deputies voted against it, 27 supported it, and one abstained.
About the Declaration System
The universal income declaration system for Armenian citizens and residents is being introduced in phases over three years starting from January 1, 2023. The project was formally adopted by parliament in December 2022. Then-Minister of Finance Tigran Khachatryan stated in November 2022 that the declarations would be pre-filled by the tax authorities.
It was intended that the tax authorities would automatically input the data already in their possession into the declarations, which would then be sent to individuals via email for review.
Under the new system, all adult resident citizens are required to submit a declaration.
In the first phase, declarations were required from individuals holding community or public positions and their family members, as well as those engaged in entrepreneurial activity.
In the second phase, starting in 2024, declarations became mandatory for private sector employees and individuals who earned income through civil contracts.
Beginning in 2025, all remaining resident citizens not covered by the previous two groups will be required to submit declarations.
Penalties for non-compliance or delays are set at 50,000 drams for entrepreneurs and 5,000 drams for other citizens.
