Changes to the Tax Code prior to the second reading

The draft Tax Code to be voted at NA extraordinary session finally may be found on NA official website. SME Cooperation Association revealed some details:

-Value added tax (VAT) threshold was raised to AMD 58.35 million,

-The first threshold of salary taxation was raised from AMD 120 thousand to AMD 150 thousand,

-the second threshold raised from AMD 1 million to 2 million.

A few interesting criteria yet remained unchanged including taxation of dividends.

The following rates have been defined upon current legislation

Up to AMD 120 000 —24.4%,
AMD 120 001 – AMD 2 000 000—AMD 29 280 plus 26% of the amount exceeding AMD 120 000,
More than AMD 2 000 000— AMD 518 080 plus 36% of the amount exceeding AMD 2 000 000.

The following rates have been defined pursuant the Tax Code (Article 150):

Up to 120 000—23%,
AMD 120 001 – AMD 1 000 000—AMD 27 600 plus 28% of the amount exceeding AMD 120 000,
More than AMD 1 000 000—AMD 274 000 plus 33% of the amount exceeding AMD 1 000 000.

It should also be noted that the draft was adopted on June 15 with 68 for, 21 against and 18 abstained votes.