On July 24, under the leadership of Deputy Prime Minister Tigran Khachatryan, a meeting of the Small and Medium Enterprise (SME) Development Council of the Republic of Armenia was held. According to the government press service, before discussing the agenda items, the Deputy Prime Minister gave instructions on the implementation of decisions made at previous meetings.
During the meeting, several issues important for improving the business environment were discussed. These included the possibility of installment payments for the difference in cadastral value resulting from changes in land use designation within investment programs, as well as the introduction of necessary regulations to ensure the flexibility of limited liability companies.
Council members also touched on the need to optimize existing mapping mechanisms and address issues important to the activities of small and medium enterprises, outlining future actions in this direction. The European Bank for Reconstruction and Development (EBRD) Investment Council in Armenia, funded by the UK Government's Good Governance Fund, coordinates and provides professional support to the SME Development Council led by the Deputy Prime Minister.
BMG reminds that starting from January 1, 2025, the Armenian government plans to significantly change the tax system for small and medium enterprises. According to a decision made by the Cabinet of Ministers on May 2, the turnover tax for this category of business will be doubled. The changes will be implemented gradually. Beginning in October 2024, the government intends to review the existing turnover tax system. Next year, it plans to limit the number of enterprises that can use the microenterprise tax system.
Currently, the turnover tax, which replaces VAT and income tax, applies to enterprises with an annual turnover of up to 115 million drams. This system was introduced on January 1, 2020. The turnover tax applies to small and medium enterprises, individual entrepreneurs, and notaries.
