Armenia's tax return deferral to be approved under accelerated procedure

YEREVAN, April 9. /ARKA/. A bill extending the deadline for filing income tax returns for individuals in Armenia will be adopted at an extraordinary session of parliament under an accelerated procedure by the end of this month, said Babken Tunyan, Deputy Head of the Parliamentary Standing Committee on Economic Issues.

"In particular, the income tax return for 2024 can be submitted until November 1, instead of May 1, and the tax return for 2025 will be submitted from March 2 to November 1," he wrote on his Facebook page.

The MP also stated that the deadline for filing returns for subsequent years will be set from March 2 to July 1.

About the Declaration System

The universal income tax return system for citizens and residents is being implemented in Armenia starting January 1, 2023, over a three-year period. The draft was finally adopted by parliament in December 2022. As Tigran Khachatryan, the then Minister of Finance of Armenia, stated in November 2022, the declaration must be pre-filled by the tax authorities.

It was expected that data available to the tax authorities would automatically be entered into the declaration, which would then be sent by email for review.

According to the new procedure, all adult resident citizens must submit a declaration.

At the first stage, declarations were submitted by citizens holding community or public positions, their family members, and individuals involved in entrepreneurial activities.

At the second stage, starting in 2024, declarations will be filled out by hired workers in the private sector and employees who received income under civil law contracts.

From 2025, all resident citizens who do not belong to these two groups will be required to submit declarations.

Fines for non-compliance or delays are set at 50,000 drams for entrepreneurs and 5,000 drams for other citizens.