Parliament adopts migrant workers' income tax bill in 1st reading

PanARMENIAN.Net - Armenia’s parliament passed, in the first reading, draft amendments to the profit tax and income tax laws at its special session on Wednesday, May 6, ARKA reports.

According to the amendments, Armenian citizens working abroad will be able to pay income tax of up to 13% in their home country.

65 MPs voted in favor of the bill, 16 voted against it and 21 abstained.

In commenting on the bill in the parliament on Many 5, deputy minister of finance Vakhtang Mirumyan said the amendments would encourage Armenian citizens employed abroad to get registered in their home country and enable them to pay income tax in Armenia. In particular, the amendments stipulate for lowering the income tax to 13%. The amendments to the profit tax and income tax laws will enable exporters to also deal with transit shipment of goods, including those for processing and re-export.

Mirumyan said these changes will only apply to the companies with government-approved investment programs. According to him, the proposed changes are meant to boost Armenian exports.

"By this, the government encourages Armenian citizens working abroad to register and pay income tax in their home country,” Mirumyan said.

Under the law adopted by the parliament on March 3, the income tax for major exporters was cut tenfold to 2%.