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The tax issues arising in trade and economic relations between the contracting states are regulated by the draft.

The RA Minister of Finance Vahe Hovhannisyan said this during the regular sitting of the NA Standing Committee on Economic Affairs convened on March 19, presenting the draft law on Ratification of the Agreement on the Avoidance of Double Taxation of Incomes and the Prevention of Fiscal Evasion and Circumvention between the Government of the Republic of Armenia and the Government of the Hong Kong Special Administrative Region of the People’s Republic of China.

According to the Finance Minister, the Agreement was signed in Yerevan on June 24, 2024, and it has two main goals: to eliminate double taxation of income and thus reduce the negative impact of obstacles related to income taxes on mutual trade and investment between the contracting states. It gives an opportunity to encourage the entrepreneurship activity by creating competitive and favorable conditions for foreign investments, as well as to form a predictable and stable tax field. The rapporteur noted that the document is considered an international treaty, has precedence over national legislation, and, unlike national legislations, is subject to much less changes.

Establishment of cooperation is designed between the tax bodies of the two states by the Agreement.

The ratification of the Agreement will give an opportunity to develop the turnover of goods and services, the move of capital, technologies, and people between the Republic of Armenia and the Hong Kong Special Administrative Region of the People's Republic of China, and will promote the development of economic ties.

The draft law was endorsed.

The draft law on Making Addenda and Amendments to the Law on State Duty will be withdrawn from circulation at the proposal of the author, the Deputy Chair of the NA Standing Committee on Economic Affairs Babken Tunyan.