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At April 13 regular sitting, the Parliament debated the draft law on Making Amendments and Addenda to the RA Tax Code in the first reading, in case of its adoption the agricultural cooperatives will be exempted from the profit tax. The agricultural cooperatives and consumers’ cooperatives will also be considered as an agricultural product producer and will be exempted from the profit tax until 31 December 2024, in terms of income from the sale of the agricultural products produced by their members.

It is established by the existing Tax Code that only direct producers of the agricultural products are considered as an agricultural product producer and exempted from the profit tax. In conditions of such regulation and in case of selling the produced agricultural product by their members, the agricultural cooperatives and the consumer cooperatives are not considered as an agricultural product producer and do not make use of the privilege of the exempt from the profit tax.

As a result of the adoption of the bill, it is expected to essentially improve the tax environment of the activity of the agricultural and consumer cooperatives, providing preconditions for the creation and development of the latter.