Taxation in Armenia
Encyclopedia
Armenia
's complex tax system was revised in 1997 and again in 2001. The top corporate profit tax
rate was lowered from 30% to 20%. As of July 1, 2001 a single rate was applied to all taxable profits, defined as the difference between revenues and the sum of wages, amortization payments, raw and intermediate purchases, social security contributions, insurance fees, and interest expenses. Newly formed enterprises are exempt from taxes for the first two years, but there is no provision for carrying forward losses.
Individual income tax
es are withheld by enterprises and are paid to the Ministry of Finance monthly. The personal income tax has
been reduced from three bands to two: 10% for monthly taxable income up to d80,000 ($144) and 20% plus a payment of d8,000 ($14.40) for taxable income between d120,000 and d320,000 ($1,892) for monthly taxable income above d80,000. Armenians also pay taxes to social security and pension funds. In 1992, Armenia introduced a value-added tax, which stood at 20% in 2003. Excise taxes are applied to diesel fuel, oil
, spirits, wine
and beer
at
various rates. There are also land taxes and property tax
es. Achieving a higher level of tax collection has been an important part of Armenia’s economic reform programs. The fiscal deficit was projected at 2.4% of GDP for 2003.
Armenia
Armenia , officially the Republic of Armenia , is a landlocked mountainous country in the Caucasus region of Eurasia...
's complex tax system was revised in 1997 and again in 2001. The top corporate profit tax
Profit tax
Profits tax in Hong Kong is Direct tax and also classified into Income tax.According to Cap 112 Hong Kong Ordinance - Inland Reveue Ordinance Section 14, unless otherwise provided, profits tax shall be charged at the standard rate on any person who carries on a trade, profession or business in...
rate was lowered from 30% to 20%. As of July 1, 2001 a single rate was applied to all taxable profits, defined as the difference between revenues and the sum of wages, amortization payments, raw and intermediate purchases, social security contributions, insurance fees, and interest expenses. Newly formed enterprises are exempt from taxes for the first two years, but there is no provision for carrying forward losses.
Individual income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
es are withheld by enterprises and are paid to the Ministry of Finance monthly. The personal income tax has
been reduced from three bands to two: 10% for monthly taxable income up to d80,000 ($144) and 20% plus a payment of d8,000 ($14.40) for taxable income between d120,000 and d320,000 ($1,892) for monthly taxable income above d80,000. Armenians also pay taxes to social security and pension funds. In 1992, Armenia introduced a value-added tax, which stood at 20% in 2003. Excise taxes are applied to diesel fuel, oil
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....
, spirits, wine
Wine
Wine is an alcoholic beverage, made of fermented fruit juice, usually from grapes. The natural chemical balance of grapes lets them ferment without the addition of sugars, acids, enzymes, or other nutrients. Grape wine is produced by fermenting crushed grapes using various types of yeast. Yeast...
and beer
Beer
Beer is the world's most widely consumed andprobably oldest alcoholic beverage; it is the third most popular drink overall, after water and tea. It is produced by the brewing and fermentation of sugars, mainly derived from malted cereal grains, most commonly malted barley and malted wheat...
at
various rates. There are also land taxes and property tax
Property tax
A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...
es. Achieving a higher level of tax collection has been an important part of Armenia’s economic reform programs. The fiscal deficit was projected at 2.4% of GDP for 2003.