ArmInfo.If the Strong Armenia Party wins the upcoming parliamentary elections, around 70,000 micro and small businesses will be eligible for a 0% tax preference. Hayk Farmanyan, Doctor of Economics and Associate Professor, made this statement while discussing this initiative proposed by Strong Armenia leader Samvel Karapetyan, with party member Edgar Ghazaryan.
According to Farmanyan, it is essential to clarify the definition of "small business" to avoid future misunderstandings. Under current legislation, this category includes businesses with an annual turnover of up to 115 million AMD. Typically, these enterprises employ an average of four workers. Annually, they contribute roughly 60 billion AMD to the state treasury, accounting for just over 2% of total state budget revenues. From a fiscal perspective, this sum is not substantial; however, the practical application of a tax incentive for small businesses could yield a significant multiplier effect.
Essentially, this represents an opportunity to return an additional 40 percent of financial resources to the state budget. Hayk Farmanyan also pointed out the social component, especially for lawyers and accountants, who are transferred to the general tax system. Specifically, they were moved from a 5% turnover tax to the general taxation system, which requires the payment of 20% VAT and 18% corporate income tax.
The Strong Armenia Party stated that it will not discriminate, but will allow small businesses to actively develop.
