TCuFP COMMITTEE MEETING

DateJanuary 26, 2021
Event categoryAdvocacy
VenueMarriott/MS Teams
On 26 January, 2021 AmCham in Armenia held a Tax, Customs, and Fiscal Policy – TCuFP committee meeting. During the meeting, AmCham Members and the AmCham Executive Team discussed:
1. Planned 2021 activities
2. Reviewed the Tax Code of the Republic of Armenia and the Government Decree Activities plan on the Reduction of Tax Policy Gap presented by the Ministry of Finance Tax Reforms Council.
It was discussed to understand the reasons for the change and was decided to review the Tax Policy Gap document in-depth, get the base numbers from the Ministry of Finance, if possible, and have another meeting in the week of February 1st to continue the discussion for a recommendation to the Government.
During the Committee meeting, it was informed that Mr. Chilingaryan’s, BDO Armenia comment on the draft Law on Exemption of the Agricultural-Consumer Cooperatives from profit tax similar to the agricultural direct producers’ practice, was also communicated to the Tax Reforms Council
The objective of the change is to continuously improve the tax environment for the activities of the agricultural-consumer cooperative. Specifically, exempt the agricultural-consumer cooperatives from profit tax similar to the agricultural direct producers’ practice. The law will also apply to the grants that the Cooperatives get throughout the year.
The following were the comments which were shared with the Tax Reforms Council:
1. The draft provides a new definition of agricultural products. However, the reason for the is not clear and is not presented. Why is it mentioned in the text “genetic modification” and “modern biotechnology”? What will happen in that sense in 2025?
1. It is desirable to ensure that this definition to be consistent with the Preparation of Financial Statements and International Accounting Standards.
2. The 3rd point of the substation needs to be clarified that after January 1, 2025, economic entities producing agricultural products will be considered profit taxpayers only if they are considered VAT payers during the reporting year in the manner prescribed by the Code (for example, in case of exceeding the annual sales turnover of AMD 115 million). Regarding the taxable base attributed to the period of being considered a VAT payer. ”
During the Council meeting, more companies, such as AN Audit, Auditors’ Association also raised the same concerns. On top, they raised to apply the same exemption for the farmers who do the slaughtering of animal husbandry excluding those legal entities who do the packaging and sales of the meat.
Members from various AmCham Member companies participated in the meeting:
Mr. Aharon Levonyan, Seraphim Consulting, and Ms. Irina Dumanyan, Mentor Graphics A Siemens Business, who also represent AmCham Board of Directors, Mr. Nerses Nersisyan, KPMG Armenia, Mr. Suren S. Ghalumyan, Deloitte Armenia, Mr. Karen Zakaryan, Finarm – Financial Market Members Association, Ms. Armine Sargsyan, Coca-Cola Երջանկության գործարան, Mr. Ara Khzmalyan, ADWISE, Mr. Aharon Chilingaryan, BDO Armenia, Mr. Kamo Karapetyan, EY Armenia, Ms. Lilit Gevorgyan, PMI Armenia.