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At March 3 sitting, the RA Chairman of the State Revenue Committee Rustam Badasyan presented for debate in the first reading the draft law on Making Amendments and Addenda to the Tax Code.

Presenting statistical data, Rustam Badasyan noted that according to the Tax Code, the income tax rate is 10%, and the rate of profit tax is 18% for individuals. There are cases when the shareholders provide interest loans to their own companies and it turns out that those interests are considered expenses for those companies, they are reduced from the gross income. The purpose of the legislative proposal is to prevent this mechanism. “We do not prohibit providing the interest loans, but in case of providing an interest loan, the general income tax rates are taken as a basis, so this year - 21%, next year – 20%,” Rustam Badasyan noted, adding that the aim is to not allow any planning through artificial deals.

Rustam Badasyan stated that as a result of this change, tax revenues of the state budget may increase by up to 5 bln AMD.

In his co-report, the Deputy Chair of the NA Standing Committee on Economic Affairs Babken Tunyan emphasized that the purpose of the regulation of the draft law is to prevent aggressive tax planning by entities.

The parliament debated in the second reading the draft laws on Making Amendments and Addenda to the RA Tax Code, on Making Addenda to the Law on Procurement, on Amending the RA Tax Code, on Making Amendments and Addenda to the Law on State Regulation of Ensuring Technical Safety, on Making Amendments and Addenda to the Law on Protection of Economic Competition, on Making Amendments and Addenda to the Law on Advertising authored by the Government , and the draft laws on Amending the Law on Narcotic Drugs and Psychotropic (Psychoactive) Substances authored by the deputies Narek Zeynalyan, Lusine Badalyan, Hrachya Hakobyan, Emma Palyan and Hripsime Hunanyan, and on Making Addendum and Amendment to the Law on Medical Aid and Service for Population, on Making Amendments and Addendum to the Law on Medical Aid and Service for Population authored by Narek Zeynalyan and Lusine Badalyan, as well as the legislative packages on Making Addenda to the Law on RA Budget System, on Making Addendum to the Law on Local Self-Government and on Making Addenda to the RA Law on Trade and Services, on Making Addenda to the RA Code on Administrative Offenses and on Making Amendments and Addendum to the Law on RA Tax Code, on Making Addendum to the RA Code on State Duty authored by the Government.

The parliament will continue the work of the regular sittings on March 4, 10:00.