A total of 5,873 organizations and individual entrepreneurs in the Republic of Armenia (RA) have temporarily suspended their activities during the first three months (March 1 to May 31) of the spread of COVID-19. The State Revenue Committee stated this in response to a written inquiry of Armenian News-NEWS.am.

This figure is 41% higher—it was 4,164 in the same quarter of 2019—compared to the same period last year.

It should be noted that the state-run, community non-profit organizations, and state administrative institutions have not been included among these organizations that have temporarily ceased operations.

In March, when a state of emergency was declared in Armenia due to the coronavirus and respective restrictions were imposed on various types of economic activity, various analysts and opposition figures had suggested a tax holiday for the worst-hit domains, whereas the government was very reserved about these proposals.

During this time, some breaks were granted to businessmen who did not fulfill their tax obligations during the crisis caused by the coronavirus, but these steps had minor importance for the business sector.

And on June 15, when thousands of businesses were already closed in Armenia, the National Assembly passed the draft law On Making Amendments and Addenda to the RA Tax Code, according to which those paying profit tax shall be exempted from making profit tax prepayments for the second quarter of 2020.

However, it is a fact that these short-term benefits will not be able to alleviate the economic crisis that is deepening in Armenia day by day and to save the businesses that are closing every day. The cessation of the activities of these businesses is not only a loss of jobs, but also a big problem for the fulfillment of loan and other types of obligations.

At present, neither the Armenian authorities nor the business community have a clear idea of how organizations and entrepreneurs will reopen their businesses after the end of the state of emergency and overcoming COVID-19.