Armenia to cut taxes, but only for IT companies

YEREVAN, 11 November. /ARKA/. Armenian Minister of High Technology Industry Mkhitar Hayrapetyan presented to the Parliament today a number of legislative and tax amendments designed to stimulate the development of the IT industry.

In particular, the amendments stipulate that state support will be provided to companies and individual entrepreneurs who actively attract labour migrants. In this case, the amount of support will be 50 per cent of the income tax paid by the employee.

Support is also provided for companies that have attracted new employees, but their total number should not exceed 30 people - in this case 100% of income tax will be refunded. If the company employs more than 31 people, the amount of refund is reduced by 50%.

In addition, companies may claim a 50 per cent refund for retraining of specialists. This amount is halved if the company employs more than 31 people. At the same time, the maximum amount that can be allocated for training trips should not exceed 2 million drams.

As for tax incentives, it is proposed to reduce turnover tax for companies from the current 5% to 2%. In addition, startups will have the opportunity to include the tax incentives in their spending budget of the year in which they were used for the implementation of projects.-0-

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