Armenia is simplifying the income declaration process. At the October 16 Cabinet meeting, Deputy Minister of Finance Arman Poghosyan presented a legislative package initiated by the ruling Civil Contract faction in parliament, reports Armenpress.
The new system involves pre-filled income declarations for individuals prepared by the State Revenue Committee (SRC). Citizens will be given sufficient time to review the forms and make any necessary corrections. If no changes are made, the form will be considered submitted on July 1 of the following year without any additional action by the taxpayer.
For 2024 and 2025, a transitional deadline of November 1 is set to allow citizens to get accustomed to the new system.
A key element of the proposal is a change to the Administrative Offenses Code. Poghosyan noted that since individuals will no longer need to submit declarations manually, it is proposed to eliminate penalties, such as warnings or fines, for not submitting a declaration on time.
However, citizens eligible for social expense reimbursements in the health or education sectors must still log into the system and confirm their declarations using an electronic signature.
Additional reforms include:
- Expansion of third-party data sharing with tax authorities, e.g., from the population registry or border control.
- The government will be authorized to decide which income types are exempt from declaration or only reportable above a certain threshold.
- Transfers between family members for everyday expenses or support will be exempt from declaration requirements.
- Banks and financial institutions will only share data with tax authorities with the citizen’s consent.
Previously, it was announced that starting November 1, all salaried workers in Armenia would be required to file income declarations.
