On November 19, parliamentary hearings began in Armenia to discuss amendments to the tax legislation. Deputy Minister of Finance Arman Poghosyan presented key changes set to take effect on July 1, 2025.
Under the new regulations, several professional services will transition from turnover tax to the general taxation system. The changes will affect legal, accounting, and advertising services, as well as construction, real estate transactions, architecture and engineering activities, healthcare, and other sectors.
Poghosyan explained that the current system creates unequal conditions, with sole proprietors paying a turnover tax capped at 5%, significantly lower than the tax burden under the general system. This disparity is especially evident when comparing sole proprietors with salaried employees in the same professions.
Some activities, including veterinary services, social care, and scientific research, will remain under the existing system for now. According to the Ministry of Finance, the reform aims to establish a fair and unified tax environment while reducing opportunities for tax evasion.
