Plans to Increase Turnover Tax for Businesses in Armenia

There are plans to increase the turnover tax for small and medium-sized businesses in Armenia to 10%, doubling the current rate of 5%. This proposal, approved at a government meeting, will be sent to parliament for consideration.

The new tax rates will be 10% for trading enterprises, 7% for manufacturing, and 12% for the hospitality sector. The tax threshold will remain at 120 million drams per year, after which companies will switch to paying VAT and profit tax.

The Minister of Finance emphasized that this increase has been discussed for several months. Data from the Revenue Committee indicates that under the current tax, companies pay 2-3 times less than under the standard tax regime.

Along with the rate increases, a wide range of tax deductions is proposed for companies with documented operations. Thus, trading companies will be able to reduce the tax from 1.5% to 1%, while manufacturing and the hospitality sector will also have the opportunity to reduce their tax liabilities.

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