Armenia’s parliament is reviewing proposed legislation to modify the turnover tax regime, which mainly includes doubling tax rates across various sectors. This includes doubling the tax rates for trade from 5% to 10%, manufacturing from 3.5% to 7%, catering and restaurant services from 6% to 12%, and other activities from 5% to 10%.
With the increased tax rates, taxpayers, as per the turnover tax regime, will receive a credit against the tax owed based on their documented expenses.
However, this comes with minimum effective tax rates. However, this comes with minimum effective tax rates: Trade will receive a credit of 9.5% on eligible expenses with a minimum tax rate set at 1% on total turnover; manufacturing will receive a credit of 5% on eligible expenses, with a minimum tax rate set at 3.5% on total turnover; and catering and restaurant services will receive a credit of 9% on eligible expenses, with a minimum tax rate set at 3.5% on total turnover.
