Armenian Prime Minister Nikol Pashinyan assured at a press conference on January 31 that the introduction of a universal income declaration system will not only avoid increasing the financial burden on socially vulnerable groups but will also provide significant benefits for working citizens. Each individual will be able to receive up to 100,000 drams (approximately $250) as a social tax deduction.
Initially, the obligation to submit declarations will apply only to salaried and contracted employees. According to the prime minister, special calculations have shown that even with the minimum wage, the amount of income tax paid is sufficient to receive the maximum deduction of $250.
The social tax deduction will cover expenses for kindergarten fees, uninsured dental services, and sports activities such as football, basketball, wrestling, and boxing. It will also apply to creative activities like dance and painting classes. Additionally, the deduction will include costs for college and university tuition, textbook rentals in public schools, and other educational expenses. To claim the deduction, individuals will need to provide proof of payment for these services.
Pashinyan emphasized that the system does not introduce new taxes or tax rates. Additional tax obligations may arise only for those who previously concealed income from activities that have been subject to taxation under existing legislation for the past 30 years.
