The State Revenue Committee of the Republic of Armenia may introduce a mechanism for taxation of remittances from 2020, which implies that a citizen receiving income from abroad will be obliged to declare it and pay the state 23% of income tax. This was announced by the Chairman of the SRC David Ananyan, reports Radiolur.

Back in 2015, legislative amendments were discussed regarding the taxation of departing workers: then it was about sending income taxes of citizens of the Republic of Armenia who carried out construction and installation work outside the country to the Armenia'a state budget.

“The tax will be levied annually. A citizen should already know that if he received money from abroad - this is the income from which you need to pay tax. Now people can criticize us, saying that for many years their neighbor, friend or spouse earned abroad and sent money that was not taxed. Yes, the amount that he earned and sent should be declared as income, and the state should receive the part due from him. If the person who received this income has already paid the tax abroad, then we should be provided with certificates, we should take into account this tax, deduct the difference, and then tax it in accordance with our law, ”Ananyan said.

In 2017, 1.766 billion US dollars was transferred to Armenia. In 2017, the physical volume of Armenia’s GDP was 11.6 billion US dollars, which is about 10 times higher than the volume of transfers. That is, due to the taxation of remittances SRC plans to dramatically increase budget revenues.

The material is copyrighted and protected by law