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Social expenses: who and how can use them in Armenia

20.01.2025, 15:08
The Armenian State Revenue Committee presented information on the social expenses established by the Armenian government in June 2023.
Social expenses: who and how can use them in Armenia

YEREVAN, January 20. /ARKA/. The Armenian State Revenue Committee presented information on the social expenses established by the Armenian government in June 2023.

Who can receive compensation for social expenses?
Citizens who are residents of the Republic of Armenia and submit an annual income declaration can take advantage of the opportunity to reimburse the income tax for social expenses incurred on behalf of themselves and their family members (spouse, parents, children).

You may qualify for compensation if, in 2024, you purchased a medical insurance package from one of the operating insurance companies in Armenia or paid for education at an institution within the country. Educational expenses can be incurred for programs in preschool, primary, basic, secondary, vocational (craft), secondary, higher, and postgraduate education.

What is the amount of compensation?
The maximum amount for social expenses related to healthcare is 50,000 drams per year, and 100,000 drams per year for education.

It is important to remember that the total amount of social expenses incurred by you and your family members should not exceed 100,000 drams per year. For example, if you receive 100,000 drams in compensation for education, you will not be eligible for the 50,000 drams compensation for medical insurance. However, you may receive compensation in both areas if the combined total does not exceed 100,000 drams.

How to claim the compensation
To claim the compensation for social expenses, you must request a payment document (invoice) from the service provider, i.e., the insurance company or educational institution, by presenting your ID and social card number. If you are the declarant but are incurring social expenses on behalf of a family member, you must also provide the family member’s ID and social card number, along with documents proving the family relationship (e.g., marriage certificate for a spouse, identity document and the declarant’s birth certificate for a parent, birth certificate for a child, or adoption certificate if applicable).

After submitting your annual income declaration, you must also submit an application for the compensation through the same program, using your single account.

Special conditions

  1. If the citizen submitting the declaration is a recipient of a social package, they cannot personally use compensation for social expenses related to healthcare. Instead, they can only use it for acquiring an insurance package for family members.
  2. If the citizen submitting the declaration is claiming income tax returns for a mortgage loan, education fees, or dividends, the compensation for social expenses will be granted only if there is a positive difference between the amount of income tax calculated and/or paid (including by the tax agent) for the reporting year and the amount of income tax returned to the individual as per the Tax Code.