YEREVAN. – It is indispensable to introduce a profit tax system in Armenia that would promote reinvesting money in business. 

Aram Kayfajyan, CEO of an Armenia-based investment company, told the aforementioned to Armenian News-NEWS.am. He noted this commenting on the Tax Code draft, which the American Chamber of Commerce in Armenia (AmCham) has developed and introduced.

According to one of AmCham’s proposals, the profit tax in Armenia should be reduced from the present-day 20 percent to all the way down to 10 percent; but solely for the money that is reinvested in business. Also, an additional tax—in the amount of 11 percent of the dividends—is proposed to be introduced for profits from business activities.

“This is a good option that will help keep money in the economy,” noted Kayfajyan. “And the dividends shall be subject to taxation, since they are derived from circulation.”