High technology development program in Armenia to run until 2032

ArmInfo. The high technology sector in Armenia will receive state support. The National  Assembly discussed amendments to the law "On state support to the  high technology sector" and to the Tax Code of the Republic of  Armenia during the plenary session on November 14 in the first  reading.

In his speech, Mkhitar Hayrapetyan, the Minister of High-Tech  Industry of the Republic of Armenia, noted that the government has  introduced several initiatives over the years to offer benefits to IT  companies. One such program, which is in effect until the end of this  year, provides small companies with up to 30 employees a tax benefit,  which reduces the income tax rate from 20% to 10%. Additionally, the  project to return 50% of income tax to these companies will be  extended until the end of the year. As the implementation period of  these programs is coming to a close, discussions were held to explore  options for institutional development of the information and high  technology industry. Following these discussions, a decision was made  to develop a package of laws focused on fostering the long-term  development of the sector, thereby securing its sustainable  development growth.

The new package of initiatives aims to extend the assistance program  for a period of 7 years, until 2032.  One areas focus is attracting  new employees to the sector. Start-up companies with up to 30  employees will receive a 100% income tax refund, allowing them to  create new jobs in partnership with universities.  Companies with 30  employees or more, will receive a 50% income tax refund.  Another  area of focus is labor migrants. Companies that employ them in the IT  sector will also receive a 50% income tax refund. This initiative is  aimed at attracting qualified personnel from global markets. 

Another benefit is available to companies that provide training for  specialists through tailored educational programs. Small start-ups  will receive a 50% income tax refund and large companies - 25%.  Companies engaged in scientific research activities, will see their  income tax refund increase from 10% to 20%.