Small business claims tax terror: Protest held in Yerevan
YEREVAN, February 5. /ARKA/. Representatives of small and medium-sized businesses gathered for the fifth time in recent weeks for a protest in front of the Armenian government building. They are protesting against changes to the Tax Code, which include an increase in the turnover tax rate from 5% to 10%, as well as the introduction of a mandatory income declaration system.
The protesters were received by the government last week, but the results of the meeting did not satisfy them.
“The government did not provide any positive response. We asked to postpone these tax changes for six months, but they refused. Tax terror has begun against the nation. In addition, we recently discovered that deductions are being made from our bank card transfers. There has been no positive shift. We are willing to pay taxes, but the authorities must clarify everything,” one of the protesters told reporters.
On the new taxes
The amendments to the Tax Code involve changes to the tax regime for certain professional sectors, transferring them to the value-added tax and income tax system. As a result of these changes, the budget is expected to receive an additional 13 billion drams.
According to the amendments that took effect on January 1, 2025, SMEs with an annual turnover of less than 115 million drams are required to pay a 10% turnover tax if their goods or services are not documented. If they are documented, the tax rate is reduced from 1.5% to 1% of turnover.
Experts and business representatives have come to a unanimous conclusion: these changes will only lead to an increase in the cost of services (such as accountants, lawyers, and certain other categories) by up to 40%, and this burden will fall directly on the shoulders of citizens.
On income declaration
By November 1, 2025, residents of Armenia who were employed (under an employment contract) or worked under a civil contract and received income subject to income tax must submit a declaration for the 2024 tax year.
This group also includes individuals who filed a declaration in the previous year (2023) or are otherwise included in the categories of those required to submit a declaration in 2025. Among them are officials, participants in commercial organizations (shareholders, members, etc.), beneficiaries of the anti-money laundering and anti-terrorist financing law, and recipients of loans and/or credits over 20 million drams.
