YEREVAN. - Individuals with higher incomes should be subject to tax inspections.

Ms Teresa Daban Sanchez, the IMF resident representative in Armenia, stated the aforementioned today at the conference “Enabling Environment for Sustainable Enterprises in Armenia” which was organized by the International Labor Organization (ILO) and the Republican Union of Employers of Armenia (RUEA).

Speaking on the Tax Code, which has already been drafted in its first approximation and submitted to the Government, she said that the IMF is encouraging the provision on self- assessment of income tax by individuals, which is common in some OECD countries.

The draft proposes to discard progressive income tax brackets (currently in force for both employees and individual businessmen) and introduce a flat rate of 20% irrespective of income. On the other hand, tax base needs to be broadened, by including capital income (e. g. capital gains).