The Government of Armenia suggests reducing the profit tax from 20% to 2% for large exporters, Deputy Finance Minister Vakhtang Mirumyan said when presenting the draft amendments to the Law on Profit Tax. The National Assembly adopted the document in the first reading.
Mirumyan said that the given privilege will concern the enterprises whose export deliveries total at least 50 bln AMD (customs value). These funds shall be fixed in one of the commercial banks of Armenia. In addition, exporters will get privileges in case they receive no profit in Armenia. The Government will take an individual decision on each of such export projects. The given standard does not concern the enterprises engaged in mining industry. In the meantime, several companies may merge to reduce the profit tax rate.
When replying to the MPs' questions, Mirumyan said that problems related to export monopolization may emerge the way it happens on the domestic market. He added that to prevent such problems, the bill provides for preventive mechanisms. The matter concerns new enterprises seeking to boost exports rather than the current ones. He said that the document does not aim to boost exports to the Eurasian Economic Union countries, because Armenia enjoys free movement of goods, services, capital and labor force with the EEU. The document aims to increase exports to the third countries.