Acting Prime Minister of Armenia Nikol Pashinyan during his speech at the special session of the Parliament highlighted the institutional change made by the Armenia’s Government in income tax.
Starting from 2018 a three-degree income tax – 36%, 28% and 23% has started to operate.
“Very fast we have set a flat income tax 23%, and according to the legislation, the income tax will reduce by 1% every year, and as a result the flat income tax will be 20% starting from January 1, 2023. At the same time, the government has also lowered the profit tax from 20% to 18%.
In fact, we have solved and continue to solve from institutional terms the issues of shadow workplaces and shadow wages. And as of March 2021, compared to March 2018, the jobs increased by 85,038 or by 15.5%. Those are the workplaces which receive a concrete salary,” Pashinyan said.
According to Pashinyan, in March 2021, compared to 2018, the general salary fund increased by AMD 34 billion (over $65 million) or 36%, and the salary of one person increased by 19-20%.
“In March 2021, compared to 2018, 4 billion more income tax was collected. They said that you would see that the time would come when we will pay more tax at a lower tax rate, that is, at a lower rate. This is the most important institutional, revolutionary reform that has taken place in Armenia,” said the acting Prime Minister.