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The draft proposes to compensate the amount of income tax paid from the income received in the form of dividends, if the organization paying the dividend meets certain tax disciplinary standards. The RA Deputy Minister of Finance Arman Poghosyan said this while presenting the draft law on Making Amendments to the RA Tax Code.

The issue was debated in the first reading at the sitting of the NA Standing Committee on Economic Affairs on January 31.

Once passed, the law is expected to come into force on July 1, 2024, and will apply to dividend refund applications submitted to the tax bodies after that date.

Arman Poghosyan stated that 4.4 billion AMD was returned in 2020, 9.6 billion AMD - in 2021, 10.5 billion AMD -in 2022, and 16 billion AMD - in 2023.

The MPs presented some proposals and comments regarding the tightening of tax administration. In this context, Arman Poghosyan mentioned that the aim of the draft is to encourage discipline, as well as the approach to ensure that companies that do not comply with the law are not included in this system.

The deputy Tsovinar Vardanyan inquired how many such companies benefit from the said privilege. According to Arman Poghosyan, in 2023, about 3550 shareholders of organizations took advantage of this opportunity, in previous years the numbers were smaller. There were also banks in the list of those organizations.

The Deputy Minister of Finance expressed his readiness to further discuss the MPs’ proposals in the working order.

The debate of the draft was postponed for up to two months at the proposal of the Committee.