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After building an individual residential house, the citizens of the Republic of Armenia, who want to sell it within two years, should pay 20% income tax. The deputies of the NA Civil Contract Faction Gevorg Papoyan and Alkhas Ghazaryan propose to remove the current provision from the law, amending the Tax Code.

The issue was debated in the first reading at the NA sitting convened on September 12.

According to Gevorg Papoyan, there are thousands of individual residential houses in all settlements of the republic, in villages, cities, in all administrative districts of Yerevan that people have built and live in, but there is no act of completion, and if a citizen decides today to have that act and sell the house where he/she has lived for 20-30 years, will have to pay 20 percent income tax.

Gevorg Papoyan informed that the Ministry of Finance and the NA Standing Committee on Financial-Credit and Budgetary Affairs received many letters related to the above-mentioned cases, which were the reason to take such a legislative initiative.

According to the co-author, earlier, the provision was included to prevent income tax evasion by a businessman. However, according to Gevorg Papoyan, the colleagues of the State Revenue Committee (SRC) assured that they have the appropriate toolkit to implement such administration to exclude such situations. The deputy called on his colleagues to vote for the draft related to thousands of the RA citizens.

The Committee member Hayk Tsirunyan presented the endorsement of the NA Standing (Head) Committee on Economic Affairs.

The Deputy Minister of Finance Arman Poghosyan presented the positive conclusion of the Government on the draft. He noted that the executive body debated the initiative and, in general, agreed with the proposal. The executive body presented proposals, which were adopted by the author.

According to the proposal of the executive body, the individual residential house received by donation will not be subject to taxation in the case of the donor.