General Taxation System to Operate Starting in 2025
By government decision, starting from 2025, the taxation system will become general. The government’s tax policy aims to reduce the scope of the special taxation system.
One of the issues is that a professional worker, for example, a teacher, pays only a 20% income tax on their salary. Another worker, like an individual entrepreneur, either pays no tax or only a 5% turnover tax.
Another issue is that entities operating within the microenterprise taxation system are exempt from entrepreneurial taxes.
Through transactions and issuance of accounting documents between various taxation systems, tax planning will be implemented, reducing the actual volume of taxes payable.
The proposed projects suggest that, as of July 1, 2025, the performance of certain professional activities and services provided under the microenterprise and turnover taxation systems be shifted to the general taxation system.
Minister of Finance Vahe Hovhannisyan stated that this applies to legal and accounting activities, management consulting, building and civil engineering, specialized construction, real estate operations, including leasing or contractual arrangements, technical testing and analysis, market research, professional, scientific, and other activities, as well as healthcare.
The goal of this policy is to reinforce the principles of equality and fairness in taxation.