One of our key objectives was to maximally simplify the tax system and to set a 23% flat income tax, which is one of the major objectives that needs to be met. This is what Armenia’s Premier Nikol Pashinyan said during a discussion on the amendments to the Tax Code during the March 7 government session.

According to him, the government’s goal is to lower the percentage to 20 percent in the course of the next five years.

“Another major goal is to do away with shadow salaries. We know that there is a logic of shadow salaries in Armenia, meaning there are salaries that are officially registered and salaries that are given in envelopes. We hope to promote the taxing of salaries, and this is why we are lowering the income tax,” Pashinyan said.

The Premier stated that 37,000 jobs were created in a couple of months following the changes that took place in Armenia in 2018. “This means that most of those jobs already existed, but were not registered. I hope this process continues.”