The Armenian government has decided to extend the income tax exemption on earnings from corporate bonds until December 31, 2027. This measure aims to further develop the capital market and encourage private companies to make greater use of financial instruments.
According to the adopted decision, as noted by Babken Tunyan, Deputy Chair of the Standing Committee on Economic Affairs of the National Assembly of Armenia, income from both existing and newly issued corporate bonds will remain exempt from income tax during the period from 2025 to 2027. However, starting January 1, 2028, earnings from all bonds, regardless of their issuance date, will be subject to taxation.
It is worth noting that this tax exemption was initially introduced in 2020 for a four-year period, set to expire on December 31 of this year. The extension reflects the government's commitment to fostering the growth of the corporate bond market in the country.
"The decision to extend the tax relief period is intended to create more favorable conditions for private companies to use bonds as a financing tool, which, in turn, should contribute to the further development of Armenia's capital market," said Babken Tunyan.
