The Microenterprise Taxation Privilege System Will Take Effect from January 1

A microenterprise taxation privilege system will come into effect in Armenia on January 1, 2020. The State Revenue Committee of the Republic of Armenia informs that microbusinesses can be operated by individuals with a turnover of up to 24 million drams.

The new system will replace the family entrepreneurship, self-employed individuals, and in some cases, the patent taxation systems. The list of types of activities for individuals engaged in microbusinesses remains unchanged in the Tax Code; they include shoemakers, watch repairers, providers of various educational programs, and more.

There are new regulations for those involved in family entrepreneurship. From now on, family members must be registered as employees. As of 2020, the patent taxation system will no longer exist. Business operators currently under this system will transition to the state duty, turnover, or general taxation, and the microenterprise domain.

Consultation and financial service providers cannot benefit from the privileged taxation system for microentrepreneurship. Individuals operating within the microenterprise system are required to submit an annual report by February 1 of the following year and, if they have employees, a monthly income tax report by the 20th of the following month.