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“According to the draft laws, it is proposed to introduce a system of universal declaration of income of individuals and the systems of “social credits” or “social expenditures” widely used in international practice,” the RA Deputy Minister of Finance Arman Poghosyan noted at the extraordinary sitting of the NA Standing Committee on Economic Affairs, presenting the package of drafts on Amending the RA Tax Code and on Making Amendment and Addendum to the RA Code on Administrative Offenses.

It was noted that the information on the incomes calculated by the tax agent and the taxes paid should be automatically filled in the declaration at the disposal of the tax authority. The declaration should be submitted by April 20 of the tax year following each reporting period, and it is proposed to implement the declaration system in three stages: in 2023, 2024 and 2025, according to groups of declarants.

As mentioned by the Deputy Minister, it is proposed to define that social expenditures are considered to be the expenditures for health care, education and housing provided by the relevant article of the Code for an individual and his family members during the tax year. The Government should define the separate directions of the types of social expenditures, the scope of family members and the maximum amount of compensation.

According to Arman Poghosyan, the social expenditures of an individual during the tax year are reimbursed from the amount of income tax calculated and paid by the Code in accordance with the procedure established by the Government.

The RA citizens holding state service, community service and public positions, resident individuals who are notaries as of December 31, 2023, must submit a declaration regarding personal income for the reporting year of 2023.

It is also proposed to establish a number of other procedures aimed at simplifying the use of the declaration system and increasing its efficiency, as well as establishing administrative responsibility for not fulfilling the defined obligations on time.

The Deputy Minister also noted that minors will not submit a declaration, and income received from abroad will be exempted from declaration during the first five years.

According to Arman Poghosyan, strengthening the culture of paying taxes is one of the goals of the initiative.

During the debate of the issue, the Committee members were mostly in favor. It was also emphasized that an average level of widespread computer literacy of the population, as well as widespread access to computers and the internet, should be ensured in the republic from the beginning of 2026.

In response to the question of the Committee member Hovik Aghazaryan, Arman Poghosyan noted that the tax agent institute will continue its activities.

During the exchange of ideas, the need for public awareness about the declaration was also raised.

The Deputy Chair of the NA Standing Committee on Economic Affairs Babken Tunyan noted that the declaration system will contribute to the introduction of targeted, social and tax policies.

The Committee made a decision to hold parliamentary hearing related to the issue on December 14.