Armenia has made some tax changes to their successful micro-entrepreneur and turnover tax regimes. Prior to the changes, companies (under certain business types) could pay zero tax if their revenue did not exceed approximately 60,000 USD per year. Similarly, a turnover tax regime allowed the business over to elect to shorten their tax bill from 18% to 5% (or less) assuming their business turnover did not exceed approximately 240,000 USD. For small business owners, this was great.
However, I’m thinking of the quote “this is why we can’t have nice things!” to explain the fact that they are doing away with this success. A new move was made by the government to effectively shut down this benefit. They claim that this is following a significant number of small-medium sized businesses filing as a micro-entrepreneur or for the turnover tax regime, it was seen as “another method of unfairly reducing taxes”. It’s a bit puzzling that the revenue agency couldn’t see that far ahead; if you’re going to offer lower tax rates of course people are going to jump on it. Imagine someone offers you ice cream and then calls you fat for eating ice cream. Anyway…
If the state wanted, they could keep a zero/low tax policy and develop themselves as an emerging financial haven for the region which would undoubtedly bring immense riches to the politicians pockets, indirect taxes as well as revenues from licenses & permits. While Europe regulates and taxes itself into oblivion, Armenia could offer itself as the answer. Although, it may be that they went without short-term revenues for too long; the state has to feed its coffers after all..
Regardless, Armenia have taken many steps to encourage entrepreneurs, have been steadily reducing tax, removing bureaucracy and personally I can attest to their very timely service with most them speaking perfect English, professionally. It’s relatively easy to obtain residency, banking is quite favourable towards gold investing & they’ve created their own citizenship by investment programme.
Caution: Fellas, Armenia still has a military conscription for their citizens & they have a history of being involved in conflicts. It may be better to aim for permanent residency but not Citizenship. See Open Door Consultancy for more
I hope they’re able to continue to foreign investment and retain attractiveness to entrepreneurs. Unfortunately however, if the policies continue to change it’s difficult to see how businessmen will be comfortable setting up long-term plans inside of Armenia.
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