Georgy Papoyan on Taxing Migrant Workers

The law states that if I receive information that a person is a citizen of Armenia, has worked abroad, and has paid less tax than they would pay in Armenia, the difference should be taxed in Armenia. This was stated today, February 19, during a conversation with reporters in the National Assembly by Georgy Papoyan, the chairman of the Parliamentary Committee on Finance and Budget, a member of the ruling Civil Contract party, in reference to the notifications sent to those returning from abroad informing them that they must pay taxes on income earned outside the country.

“The opposite is also true; if individuals come from other countries and work in Armenia, paying taxes, and if their country has a higher income tax, they pay that difference in their country. This law has been in place for a long time and has been applied. The question has become sensitive today because the EAEU agreement for citizens going abroad for work has started to take effect for all countries. This means that either we must withdraw from the EAEU, or declare that we do not apply that rule from the EAEU, which is also a problem,” he said.

According to Papoyan, if you work in Russia for more than six months, the income tax there is lower than in Armenia. “If you work for less than six months, the income tax is higher than in Armenia. Therefore, if someone comes here from Russia and works for 2-3 months, Russia says you have paid less in Armenia, and you need to pay us more. Now we have entered a system where we have to play by those rules, or we have to say that we do not play by that rule. First, others have to agree that you will not play by that rule. I know that at this moment the State Revenue Committee is not conducting any administrative measures; they are merely sending notifications,” he noted.