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YEREVAN. - The Armenian Government proposes extending the tax privileges granted to start-ups from 3 to 5 years.

Deputy Minister of Economic Development and Investments of Armenia, Emil Tarasyan, said the aforementioned, introducing the draft amendments to the Law “On state support to the sector of information technologies.”

The law, exempting new IT-companies with a staff of up to 30 workers from the majority of taxes, has taken effect since 2015. The only thing they have to pay is the 10 percent income tax. Overall, 178 start-ups, which have opened 865 jobs, have so far been granted tax privileges.

For a comparison, in 2014—when the law had not yet taken effect—16 IT start-ups were opened. Thus, thanks to the new law, the number of start-ups has grown by 4-5 times. “We are glad to note that the IT specialists develop not only purely professional but also practical skills. This helps create final products and export them instead of creating separate program codes,” the Deputy Minister said.

The overall turnover of the aforementioned 178 start-ups thus made up 3 billion 993 million AMD (approx. $8,3 million), 90% covering export. The enterprises paid 158,4 million AMD income tax. 

According to another proposed amendment, separate start-ups opened by the workers of operating companies will be able to claim for the privileges as well.

“As before, we don’t allow subsidiaries of operating companies to gain privileges. But if the enterprise is opened not by a company but its worker, who does this for himself/herself, then we agree. Many of them want to start their own business, most frequently round a specific product. There is nothing bad in this. Conversely, new projects are new taxes and export,” Tarasyan said. 

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