Large businesses not to enjoy same privileges along with small ones

PanARMENIAN.Net - During the November 18 sitting, the Armenian government introduced changes and amendments to the RA Law on Taxes.

Armenian Minister of Finance Tigran Davtyan said that the amendments aim to reveal activity of interrelated entities. Specifically, it refers to usage of possible zero limit of VAT as part of a favorable regime for representatives of small and medium enterprises (SME).

“The loophole is often used for tax evasion,” Davtyan said, adding that companies selling imported equipment will be considered a taxpayer from now on.

Besides, amendments were introduced to commissions.

Armenian Prime Minister Tigran Sargsyan noted that a range of problems has been revealed: large business tries to use those privileges, which have been provided to SME representatives.

According to him, large businesses are purposefully divided to small enterprises to enjoy favorable conditions.

“We are establishing an institute of interrelated persons. If similar cases are revealed, the State Revenue Committee will have the right to apply all legislative levers to protect the rights of SME,” Sargsyan said.