Tax liabilities of small and medium business increase

Tax liabilities of employers have increased following the amendments to the Law on Income Tax and the Law on License Payments, Executive Director of the Republican Union of Employers Vahan Simonian said at a press conference today.
According to him, by the Law on Income Tax, starting from 2013, a 24.4% tax will be levied on earnings of employees with a monthly salary of 120,000 AMD, a 26% tax - on those with a salary from 120,000 to 2 million AMD, and a 36% tax - in case of salaries of over 2 million AMD.

Simonian said the changes in the law will not affect employees, but employers will have to pay an additional sum of 600-700 AMD for each employee in case of a salary of up to 120,000 AMD, and in case of salaries of over 2 million AMD employers will pay up to several hundred thousand drams.
Vahan Simonian also spoke about the new Law on License Payments. He quoted the Dental Association’s chairman as saying that previously a dental clinic paid 10-12,000 AMD for each dentist’s chair, whereas now the sum has been raised to 80,000 AMD.
“It is planned to introduce electronic document circulation,” Simonian said so as to offer some consolation.

It should be mentioned that the new Law on License Payments caused discontent of dentists, brokers and tour operators, while the amendment to the Law on Income Tax, under which a 36% tax will be levied on earners of 2 million AMD and more has aroused concern of the IT sector executives who say that this may lead to emigration of IT experts and increase the share of the shadow sector.