Friday, February 16 2024 16:48
Alina Hovhannisyan

Expert: SRC should have taxed labor migrants only after large-scale  information campaign for them, which was not done

Expert: SRC should have taxed labor migrants only after large-scale  information campaign for them, which was not done

ArmInfo. The decision of the State Revenue Committee of Armenia on taxation of labor migrants  and penalties in case of non-payment is extremely unfair. Tatevik Bezhanyan, Advocacy Officer at Armenian Caritas Migration and Development Project , stated during a press conference on February 16.  

We are talking about the decision of the State Revenue Committee  of Armenia to tax labor migrants working outside of Armenia, in  particular in Russia (where their lion's share are), in the amount of  the difference in the income tax paid according to the legislation of  Armenia and the Russian Federation (in the amount of 8%). In  addition, the Committee imposed penalties of 0.4% for each day of  non-payment. 

According to Tatevik Bezhanyan, to comply with the new requirements  from the State Revenue Committee, labor migrants will also need the  services of an accountant, which they will also need to pay for.   These are hard-to-get amounts for labor migrants, given that the bulk  of the money they earn goes to cover the household expenses of their  families. The ruble depreciation factor should also be taken into  account, due to which the incomes of Armenian workers have decreased  by 2 times. The SRC's decision is fraught with serious consequences  for our citizens who are unable to fulfill their tax obligations to  the state. For example, in case of non-payment, their property may be  confiscated, etc.

In this regard, Bezhanyan considers it appropriate to introduce such  innovations starting next year, but only after the State Revenue  Committee has carried out a large-scale information campaign to labor  migrants about the additional tax obligations that they may have upon  returning to Armenia.

"Everyone who received a letter from the State Revenue Committee  about tax obligations and fines had concluded legal employment  contracts, the employer paid taxes for them in the Russian  Federation. And as a result, it turned out that those who worked  illegally, did not have an employment contract, did not pay taxes to  the state treasury of the Russian Federation, were in a better  position," the expert emphasized.  Referring to the RA law, Bezhanyan  said that labor migrants will not be burdened with tax obligations if  they stay outside Armenia working for 183 days or more.

According to data for 2022, the number of labor migrants from Armenia  with an employment or civil contract in the Russian Federation  exceeded 130 thousand people.

As Hetq online newspaper ("Trace") reports , thousands of citizens  who went to Russia to work upon returning to Armenia received letters  from the State Revenue Committee stating that they had tax debts in  the amount of 100 thousand to 1 million drams.

"Based on the abovementioned, it is recommended to submit an annual  calculation of income tax and social contributions for 2022 to the  tax authority as soon as possible and pay the resulting tax  obligations," says a message sent to a citizen from the State Revenue  Committee, in which special emphasis is placed on the agreement  signed between the governments Armenia and Russia have an agreement  on the avoidance of double taxation. In other words, according to the  SRC, this process is not double taxation.  The SRC has already  notified 1,005 individuals, from whom it is demanding a total of 187  million drams.  In 2020, 122 individuals were notified, from whom the  State Revenue Committee is demanding 21.3 million drams. 96  individuals were notified of income received in 2021, from whom 13.2  million drams are required to be withdrawn. Based on income received  in 2022, 153.3 million drams are required from 787 individuals.  It  is noteworthy that the citizens of Armenia were not informed in time  about the adopted protocol, which must now be implemented by the  State Revenue Committee.

POST A COMMENT
Input digits     


News
IMF upgrades Armenia`s GDP growth forecast for 2024 from 5% to 6%,  expecting inflation at 3.1% and unemployment at 13%IMF upgrades Armenia`s GDP growth forecast for 2024 from 5% to 6%,  expecting inflation at 3.1% and unemployment at 13%
Armenia`s Deputy PM, Veolia Vice President discuss problems with  water supply to consumers Armenia`s Deputy PM, Veolia Vice President discuss problems with  water supply to consumers 
EEC Board decided to liberalize certain categories of precious  metals` import/exportEEC Board decided to liberalize certain categories of precious  metals` import/export
Earthquakes, drought could affect Armenia`s debt sustainability -  EFSDEarthquakes, drought could affect Armenia`s debt sustainability -  EFSD
Converse Bank starts initial placement of next AMD, USD bonds in  amount of AMD 5 billion, $10 millionConverse Bank starts initial placement of next AMD, USD bonds in  amount of AMD 5 billion, $10 million
USAID releases fact sheet following Joint EU-US-Armenia High Level  Meeting in Support of Armenia USAID releases fact sheet following Joint EU-US-Armenia High Level  Meeting in Support of Armenia 
Expert: Armenia has the potential to get high-quality and abundant  harvest of apricots this yearExpert: Armenia has the potential to get high-quality and abundant  harvest of apricots this year
EFSD presents assessment of potential impact of natural disasters on  debt sustainability of Armenia, Kyrgyzstan and TajikistanEFSD presents assessment of potential impact of natural disasters on  debt sustainability of Armenia, Kyrgyzstan and Tajikistan
Armenia is considering appointing attache in Silicon ValleyArmenia is considering appointing attache in Silicon Valley
Astana proposes joint investment programmes in Yerevan Astana proposes joint investment programmes in Yerevan 
Armenia, Kazakhstan have unrealized economic potential - premier Armenia, Kazakhstan have unrealized economic potential - premier 
Armenia, EU discuss expansion of economic cooperation Armenia, EU discuss expansion of economic cooperation 
Transavia airline starts operating route Lyon-Yerevan-LyonTransavia airline starts operating route Lyon-Yerevan-Lyon
EAEU and its economic principles should not be mixed with political  ambitions - Nikol PashinyanEAEU and its economic principles should not be mixed with political  ambitions - Nikol Pashinyan
Armenia, Australia to strengthen cooperation in high-tech field Armenia, Australia to strengthen cooperation in high-tech field 
Leasing EXPO -2024 officially opened in YerevanLeasing EXPO -2024 officially opened in Yerevan
Araratbank to double leasing portfolio by end of 2024Araratbank to double leasing portfolio by end of 2024
Armenian, Kazakh passenger and cargo carriers to be exempted from  road and environmental taxes on reciprocal basis Armenian, Kazakh passenger and cargo carriers to be exempted from  road and environmental taxes on reciprocal basis 
Economy Ministry jointly with Armenal, develop schemes to diversify  sales markets for enterprise`s productsEconomy Ministry jointly with Armenal, develop schemes to diversify  sales markets for enterprise`s products
Info about IT specialists leaving Armenia en masse has nothing to do  with reality - premierInfo about IT specialists leaving Armenia en masse has nothing to do  with reality - premier
WB improves Armenia`s   economic growth forecast for 2024 from 4.7%  to 5.5% WB improves Armenia`s   economic growth forecast for 2024 from 4.7%  to 5.5% 
Government is ready to share risks with agricultural insurersGovernment is ready to share risks with agricultural insurers
EIB to issue loan under energy efficiency programme to Armenia EIB to issue loan under energy efficiency programme to Armenia 
Deadline for filing personal income declarations in Armenia may be  extendedDeadline for filing personal income declarations in Armenia may be  extended
ADB intends to expand its areas of activity in ArmeniaADB intends to expand its areas of activity in Armenia
ADB forecasts 5.7% economic growth for Armenia in 2024ADB forecasts 5.7% economic growth for Armenia in 2024
Conversebank to present its Converse Leasing product at annual  Leasing ExpoConversebank to present its Converse Leasing product at annual  Leasing Expo
By rebranding, INGO Armenia IC begins new stage of developmentBy rebranding, INGO Armenia IC begins new stage of development
Some countries refusal to service Russian Mir bank cards against  common interests - Elvira NabiullinaSome countries refusal to service Russian Mir bank cards against  common interests - Elvira Nabiullina
USAID to invest additional $33mln in Armenia`s economy USAID to invest additional $33mln in Armenia`s economy 
Idplus Bonuses in Idram&IDBank ApplicationIdplus Bonuses in Idram&IDBank Application
Deputy PM: we are ready for any assistance to contribute cargo  aviation establishmentDeputy PM: we are ready for any assistance to contribute cargo  aviation establishment
Mkhitar Hayrapetyan on TV broadcasting agreement with RF: If our  proposals are not taken into account, we do not rule out possibility  of terminating agreement unilaterallyMkhitar Hayrapetyan on TV broadcasting agreement with RF: If our  proposals are not taken into account, we do not rule out possibility  of terminating agreement unilaterally
Armenia, Iran discuss organization of joint production in various  branches of economy Armenia, Iran discuss organization of joint production in various  branches of economy 
ADB ready to fund northern section of Sisian-Kajaran highway of  North-South transport corridor  ADB ready to fund northern section of Sisian-Kajaran highway of  North-South transport corridor  
Armenia`s Ministry of High-Tech Industry developing sectoral strategy Armenia`s Ministry of High-Tech Industry developing sectoral strategy 
Armenia`s footwear exports to Russia 11 times up Armenia`s footwear exports to Russia 11 times up 
EDB sets course for digital future of transportation at joint EEC and  ESCAP eventEDB sets course for digital future of transportation at joint EEC and  ESCAP event
Team`s Next Generation Networ is already available in AshtarakTeam`s Next Generation Networ is already available in Ashtarak
Kazakhstan`s potential exports to Armenia total $350mln - minister Kazakhstan`s potential exports to Armenia total $350mln - minister 
Armenia`s economy to face crisis if Moscow severs economic ties with  Yerevan - ex-premier Armenia`s economy to face crisis if Moscow severs economic ties with  Yerevan - ex-premier 
Acquisition of Ameriabank by BOGG PLC int`l financial group completedAcquisition of Ameriabank by BOGG PLC int`l financial group completed
Armenian service sector generated revenue of $1.2 billion in first  two monthsArmenian service sector generated revenue of $1.2 billion in first  two months
EEC: EAEU common electricity market is at high level of readinessEEC: EAEU common electricity market is at high level of readiness
Armenia`s metallurgical industry increased production volumes by 37%  in first 2 monthsArmenia`s metallurgical industry increased production volumes by 37%  in first 2 months
Idram and IDBank participated in the signing ceremony of the Declaration of Women`s Empowerment PrinciplesIdram and IDBank participated in the signing ceremony of the Declaration of Women`s Empowerment Principles
US supports building of strong transport corridor from Turkiye  to  Central AsiaUS supports building of strong transport corridor from Turkiye  to  Central Asia
EFSD contributes to modernization of Armenia`s irrigation systemEFSD contributes to modernization of Armenia`s irrigation system
ADB to issue EUR 60.09mln loan to Armenia for urban development  programmes ADB to issue EUR 60.09mln loan to Armenia for urban development  programmes 
EIB to issue EUR 25mln loan to Armenia for 2nd phase of energy  efficiency programme in Yerevan EIB to issue EUR 25mln loan to Armenia for 2nd phase of energy  efficiency programme in Yerevan 
Armenia`s clothing exports to Russia 1.5 times up Armenia`s clothing exports to Russia 1.5 times up 
Armenia needs alternative if leaves EAEU - expert Armenia needs alternative if leaves EAEU - expert 
Diagnosis from Prime Minister: Armenia`s irrigation system is deadDiagnosis from Prime Minister: Armenia`s irrigation system is dead
CECC business mission to visit Armenia  CECC business mission to visit Armenia  
Armenia joins International Solar AllianceArmenia joins International Solar Alliance
Armenian NPP to be under maintenance repair Armenian NPP to be under maintenance repair 
Brett King: Banks should be ready to implement AIBrett King: Banks should be ready to implement AI
Expert: There is no alternative to digital transformationExpert: There is no alternative to digital transformation
Arman Barseghyan: technically, Ameriabank is a digital bank Arman Barseghyan: technically, Ameriabank is a digital bank 
1.2% y-o-y inflation in Armenia`s consumer market in March 2024 was  caused by drop in food prices 1.2% y-o-y inflation in Armenia`s consumer market in March 2024 was  caused by drop in food prices 
Read more


Exchange rates
18.04.2024
RUB4.190.00
USD394.07-1.03
EUR420.750.36
GBP491.72-0.42
CAD286.470.33
JPY25.52-0.03
CNY54.44-0.14
CHF433.660.15