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One of the amendments being proposed in the Tax Code relates to designing some exception from the decision rules of the taxation minimum bases of the alienation deals of the real estate (plots of lands, buildings, facilities) by the Value Added Tax and for the profit taxation. It is proposed to define the taxation bases of the abovementioned deals with the prices of the factual deals. It refers to the taxation on the basis of 80% of the approximated cadastre evaluated cost to the market cost.

The RA Deputy Minister of Finance Arman Poghosyan noted that investment is done, the company develops, in future sells, then in case of non-resident and resident organization there is no taxation.

The amendments and addenda being proposed in the Tax and Civil Codes were debated in the first reading at November 9 sitting of the NA Standing Committee on Economic Affairs.

In the Q&A session the MPs touched upon the problems conditioned by the differences of the property cadastre cost and the evaluated and approximated costs by the bank, the market cost fluctuations, etc.

The Committee endorsed the legislative package.

During the period from the first to the second reading work discussions will be organized for revising the package.