SRC plans to apply mechanism for taxing transfers

The State Revenue Committee has put into circulation new idea according to which all the citizens of Armenia will become potential income tax payers from 2020.

The first step in that direction will be the mandatory declaration of own incomes by the citizens which will allow to see whether their incomes are subjected to taxation or not.

This initiative has raised certain concern among the citizens. Radiolur spoke with the SRC chairman Davit Ananyan over the issue.

The SRC chairman said that Armenia is trying to apply transfer taxation mechanism, which means that if a person receives an income from abroad he/she has to declare it and pay 23% income tax to the state. He said it is yet an idea put into circulation by the State Revenue Committee but which has already raised concerns of the people.

He said according to the idea, the tax will be charged annually. A citizen should know that if he/she receives money from abroad, it is an income which should be taxed. The received money should be declared and the state must get a tax from it.

Ananyan said the SRC is planning to sharply increase budget entries by taxing transfers only.

To measure the incomes of people the SRC is planning to apply accumulator ID cards mechanism to see the real incomes of people during consumption.

To motivate people the SRC has decided to make ID cards accumulator which means that 1-3% of made consumption will be returned to a citizen by the card.