The Chamber of Advocates of Armenia has sharply criticized recent tax amendments that came into effect on January 1. These changes to the Tax Code require lawyers to switch from simplified taxation to the general taxation system, significantly increasing their tax burden.
Under the new rules, instead of a 5% turnover tax, lawyers are now required to pay a 20% VAT and profit tax ranging from 18% to 23%. Furthermore, even pro bono legal services are now subject to VAT, which the legal community argues will greatly reduce access to legal aid for citizens.
At a meeting of the legal advocacy club, participants noted that the new law creates discriminatory conditions for individuals, who will now have to pay 20% more for legal services compared to VAT-paying companies. Additionally, the law imposes extra financial strain on lawyers, who are now obligated to cover the costs of mandatory accounting services.
The Chamber of Advocates plans to take several actions in response, including drafting a bill to exempt legal services from VAT, collecting signatures from lawyers, organizing protests if the government fails to respond, and potentially appealing to the Constitutional Court through parliamentary deputies to challenge the law's constitutionality.
