ArmInfo. What are social expenses and how to get compensation?: the State Revenue Committee of Armenia explains.
1. Who can get compensation for social expenses?
If you are a resident of the Republic of Armenia and have filed or are required to file a tax return for the reporting year 2024 in 2025, you can take advantage of the opportunity to reimburse social expenses from income tax. You can receive compensation for social expenses incurred by you and your family members. Family members include the spouse, parents, and children (adopters and adopted children) of the person filing the declaration.
2. In what cases can you count on compensation?
If you are required to file a tax return for 2024 in 2025, you can benefit from social security reimbursement only if you purchased a health insurance package for yourself or a family member from an insurance company operating in Armenia, or you paid for tuition at an educational institution implementing an educational program in the Republic of Armenia during 2024.
3. Which institutions offer students the opportunity to receive compensation for social expenses?
You can receive compensation for education expenses if the educational expenses were incurred within the framework of pre-school, primary, basic, secondary, preparatory (vocational), secondary, higher and postgraduate vocational education programs. Remember that you need to request an invoice from the educational institution for the expenses incurred in connection with tuition fees.
For example, if your child studies in a fee-based kindergarten, school or university, then in this case you can use the opportunity to receive compensation for social expenses, but if the payment was made for tuition at an art, music or sports school or for participation in private courses, then these expenses are not subject to compensation.
4. Can you receive compensation if you used any medical services?
No, the cost of individual medical services (for example, medical examination, surgery and other similar services) are not considered social expenses, therefore they are not subject to compensation. Social compensation for health care expenses is provided only if you purchased a health insurance package from an insurance company operating in the Republic of Armenia in 2024.
5. What is the amount of compensation?
The maximum amount of social expenses for healthcare is 50,000 drams per year, and the maximum amount of expenses for education is 100,000 drams per year. Remember that the maximum amount of social expenses incurred by you and your family members in all areas is 100,000 drams per year. It is also important to know that you can use the reimbursement of social expenses in both areas at the same time, but their total amount cannot exceed 100,000 drams.
6. How to use the compensation?
To receive compensation, you must request an invoice from the insurance company or educational institution, presenting an identity document and the state services number. And if you are the declarant, but make social expenses for a member of your family, you must also provide an identity card and the state registration certificate number of the family member, as well as documents confirming the fact of belonging to the family (in the case of a spouse - a marriage certificate, in the case of a parent for a child - a birth certificate, in the case of an adoptive parent or adopted child - a document confirming the relevant basis for adoption).
7. Do I need to submit an application to receive compensation?
If you have already submitted a declaration and have been issued a payment document indicating your public service number as a payer of social expenses, it will automatically be reflected in the section of the income declaration system at https://self-portal.taxservice.am/ about how many social expenses you have made and what the compensation amount is. And to receive compensation, you simply need to submit an application through the same system to receive the compensation amount from a joint account. The application is available in the section of the system. An individual fills out an application, indicating the bank account number and the amount to be reimbursed. The application must be signed electronically and submitted to the State Revenue Committee through the same system.
8. Do I need to personally bring the payment document or will it be automatically reflected in the declaration?
The payment document is automatically reflected in the section of the declaration system. Here the user gets access to information about the document, as well as to the PDF version of the document. Information on the amount of compensation for social expenses is also automatically entered into the relevant section of the declaration.
9. Can you, as a declarant, receive compensation if your child is a foreign citizen?
Yes, you can use the opportunity to compensate social expenses even if your child, for whom you have made social expenses, is not a citizen of the Republic of Armenia.
10. Can parents who have applied for citizenship receive compensation for tuition fees for the same student?
Yes, both the mother and the father of a student who is a declarant can use the opportunity to compensate social expenses incurred by the same person. For example, if the mother paid for tuition for one semester of the academic year, and the father for another semester. In this case, it is important that the payment document, as a social expense, is issued indicating the state social security number of each person separately.
11. If you paid tuition fees at two different educational institutions in 2024, can you receive a refund in both cases?
If you are a declarant and paid tuition fees at different educational institutions and for different family members during 2024, you can receive compensation in both cases. However, it should be noted that the maximum compensation amount cannot exceed 100,000 drams. Thus, both the mother and father of a student can take advantage of the opportunity to compensate for social expenses incurred for the same person. For example, if the mother paid for tuition for one semester of the academic year, and the father for another semester. In this case, it is important that the payment document, as a social expense, be issued indicating the state service number of each person separately.
12. What to do if you are a declarant, but you do not have a payment document for social expenses incurred in 2024?
If you purchased a health insurance package or paid for education in 2024, but do not have a payment document, you can request the relevant payment document from the insurance company or educational institution to confirm social expenses and receive compensation. The service provider is obliged to provide the document even if you made social expenses in 2024.
13. If a citizen filed a declaration for 2023 and made social expenses but did not receive compensation, can he/she file an application in 2025 and receive compensation for social expenses?
Yes, if an individual was required to file a declaration for 2023, he/she can request a calculation document from the relevant insurance company or educational institution for 2023, and then file an amended declaration, after which he/she can receive compensation.
14. If the citizen filing the declaration is a recipient of a social package, can he/she count on compensation for health care expenses?
If you are a recipient of a social package, you cannot personally receive reimbursement for social health care expenses; instead, you can only receive reimbursement if you purchase an insurance package for family members.
15. Can a taxpayer who receives a mortgage income tax refund receive compensation?
If a citizen filing a declaration has used the opportunity to refund income tax on a mortgage loan or tuition fees, dividends, then reimbursement of social expenses is carried out if there is a positive difference between the income tax amounts calculated and (or) paid (including by a tax agent) for the reporting year and the income tax amounts returned to an individual in cases provided for by the Code.
16. If a health insurance package for an employee was purchased by his employer, can the declarant receive compensation?
No, the opportunity to reimburse social expenses can be used by the person who is the declarant who incurred these expenses.
Thus, if the expenses for purchasing a health insurance package were incurred by another person (including the employer), then the person who is the declarant cannot use the opportunity to reimburse social expenses for it.
17. Is it possible to receive compensation if you are not a declarant, but have submitted a calculation- declaration for renting out real estate?
No, only citizens of the RA who are residents of the Republic of Armenia and are considered declarants can take advantage of the opportunity to compensate social expenses (the full list is here: https://src.am/am/getNews/833).
