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It is designed to form a new level of state-citizen, new philosophy by introducing the system: the RA Deputy Minister of Finance Arman Poghosyan said on December 6, presenting for debate in the first reading in parliament the legislative package on Making Amendments and Addenda to the RA Tax Code and on Making Amendment and Addendum to the RA Code on Administrative Offenses. It is designed to introduce a universal declaration system of the physical entities’ incomes in Armenia in a phased manner beginning from 2023.

During 2023-2025 the system will be introduced in a phased manner. The State Revenue Committee (SRC) will prepare the draft declarations on the basis of information under its disposal. Afterwards, they can be adjusted and already presented to the tax body as a version confirmed by the declarant. It is designed that at the first phase the citizens holding positions in the state service, community service and public positions and notaries will be those presenting declarations on personal incomes.

“At the second phase declarants will be persons having certain connection with entrepreneurship activity, in other way, having direct or indirect connection,” Arman Poghosyan said.

In the third, last year declarants will become the remaining resident citizens.

The draft stems from the directions of the policy established by the Government programme 2021-2026, according to which, a working system of declaration of the physical persons’ incomes will introduced, which will also promote the introduction of the system ‘social credits’ being widely used in the international practice. The minor citizens will not present declaration.

The deputy of the NA Civil Contract Faction Arsen Torosyan was interested in the fact if they can be sure that the issue of filling in the declaration will not be postponed for one year, as there might be questions connected with the infrastructure, as well as with the citizens’ possibilities. The deputy asked what the citizens, who have no smart mobiles or web accessibility, will be proposed.

According to Arman Poghosyan, the Government approached this reform with great responsibility and conviction that success will be, and on that way various difficult will also be. “The infrastructure is very important, and the main work will be done by the logic of the SRC capacity development, introduction of new systems, new modules in a way that they will be maximum convenient and accessible for the user,” he said. Arman Poghosyan also informed that the citizens, who will have difficulties in filling in the declaration the specialists of the SRC service centres will assist them.

The deputy of the Civil Contract Faction Babken Tunyan inquired from the Deputy Minister by introducing the income declaration system additional any tax burden, increase of rate or additional any kind of tax is designed for the citizens.

“By introducing the system at the moment any income not taxable is not envisaged to make taxable, as well as at present, it is not envisaged to increase tax rate of any income. Increase of tax burden is not envisaged by this draft,” Arman Poghosyan underlined.

Babken Tunyan presented the endorsement of the NA Standing Committee on Economic Affairs on the package, noting that in case of being passed it will refer to all adult citizens of the republic. That means that all adult citizens, about 2 million people will submit income declarations already in 2026.

The Deputy Chair of the Committee clarified that the final goal of the system introduction is the improvement of the RA citizen’s life, as well as the formation of the state-citizen new relations.

The deputy Zaruhi Batoyan inquired if other citizens will have accessibility to the citizens’ presented declarations, and in response to that, Babken Tunyan clarified that no, only the given person will have accessibility to the income declaration: the citizens cannot get familiarized with other person’s declaration. Babken Tunyan informed that administrative responsibility is set for that case.

The Head of the NA Civil Contract Faction Jayk Konjoryan informed about his positive position on the package. Underscoring the public interest towards the package under debate, the Head of the Faction noticed that such most important issue is again debated with the absence of the opposition. “It is not clear the opposition has returned or not,” he said, stressing that the opposition colleagues did not take part in the debate held at the Committee. They did not take part in the working debate also with the experts.

The Civil Contract Faction will vote for the draft and moreover, the Faction with its legislative all tools will carry out post-legislative control in order this reform will be implemented properly,” the Head of the Faction summed up his speech.

In their final speeches Babken Tunyan and Arman Poghosyan touched upon their colleagues’ voiced some viewpoints and questions and gave clarifications.