Armenian IT startups provided with tax breaks

YEREVAN, April 23. /ARKA/. Armenian Parliament has passed today in the second and final reading a set of amendments to the law "On State Assistance to the Information Technology Sector, which provide IT start-ups with a string of tax breaks. Transport, Communications and IT Minister Hakob Arshakyan recalled that tax breaks for IT startups have been in effect since 2015 exempting them from income tax (zero rate) and cutting payroll tax to 10% from 23%. He said the law provided that tax benefits would be in effect for 5 years for those startups that received the relevant certificates before February 1, 2018. The approved amendments say that the benefits will be valid for those startups that received certificates after February 2018 too. He also noted that the revised law does not provide for tax breaks to subsidiaries of companies registered abroad. Under a government decision passed by the Armenian parliament in late 2014, startups employing up to 30 people can be exempt from profit tax until 2020. They are also eligible for a preferential income tax rate for their employees, equivalent to 10 percent of their gross wages. The minimum payroll tax rate in Armenia is set at 23 percent. IT is Armenia’s fastest growing economy sector expanding by an average 20 percent annually. It employs more than 16,000 people and accounts roughly for 5 percent of the country’s Gross Domestic Product. --0--

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17:59 04/23/2019