Turnover tax review and “Family business” exemption from taxes discussed at SME Development Council

11.06.2014 Eleventh SME Development Council, chaired by the Prime Minister Hovik Abrahamyan took place.

Turnover tax percentage for trade area businesses will be decreased from 3.5 to 1 % with the condition of submission of documentation by the SMEs, however the inspection procedures by the tax authorities will be  simplified and be held in 1 working day only. The changes are expected to be in force since October 1.

In case of document absence several levels of regulation are to be applied:   

– The first  time the SME will receive a warning;

– the second time- 20 thousand AMD fine;

– third time   five percent Turnover tax will be applied, calculated from the beginning of the year;

– the fourth case of violation the SME will be transferred the field of Value Added Tax.

The Council  also discussed the issue of introduction of  “Family business” introduction and the annual turnover of 12 million businesses, getting the family business status, will be exempted from taxes.

The BSO experts will additionally inform the business community about further details.

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