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The deputies of the NA Civil Contract Faction Gevorg Papoyan and Alkhas Ghazaryan propose an amendment to the Tax Code of the Republic of Armenia in order to exempt individuals who are considered as developers of individual residential houses and not sole proprietors and notaries from additional expenses.

The issue was debated in the first reading and endorsed at the sitting of the Standing Committee on Economic Affairs on September 7. It was presided over by the Committee Chair Babken Tunyan.

It is proposed to establish that for the purpose of determining the taxation base with income tax, the income received from the alienation of an individual residential house, buildings or other premises by an individual considered as a developer of an individual residential house to an individual who is not a sole proprietor and notary are also considered as deductible incomes, if the individual residential house, buildings or other premises have been alienated within two tax years following the tax year that includes the date of their deed of termination.

According to Gevorg Papoyan, the amendment was previously adopted aimed at improving and simplifying the tax administration, as well as excluding the cases of business persons operating under the name of individuals. However, according to the deputy, as a result of the debates with the Ministry of Finance and colleagues of the State Revenue Committee (SRC), it was found that the current toolkit of the SRC is sufficient to carry out the abovementioned administration.

“Those citizens who are not really engaged in business activities and built an apartment for themselves, and it turned out that they have to sell it within two years, will not pay taxes,” Gevorg Papoyan emphasized.

The Deputy Minister of Finance Arman Poghosyan presented the positive position of the Government on the draft. “Our goal, as in the past, as now, is the taxation of sales transactions of individual residential houses characterized by the characteristics of entrepreneurial activity,” the Deputy Minister noted. The executive body presented four proposals that were accepted by the authors.

The deputies presented their observations and concerns. The Deputy Chair of the Committee Babken Tunyan proposed to organize a working debate on the draft from the first to the second reading with the participation of the representatives of the interested departments.