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ARMENIA NOT READY FOR ABOLITION OF TAXES FOR SMALL AND MEDIUM-SIZED ENTERPRISES, HEAD OF NATIONAL CENTRE FOR DEVELOPMENT OF SME SAYS
YEREVAN, September 18. / ARKA /. Armenia is not ready for abolition
of taxes for small and medium-sized enterprises, according to
Karen Gevorkyan, the deputy director of the National Centre for the
Development of Small and Medium-Sized Enterprises.
"Tax exemption is a much more complex issue than it may seem. Of
course, everybody realizes that such a move could provide a strong
incentive for the development of SMEs. However, it should be enforced
based on serious research and preparedness of the system for it,"
he said to journalists.
According to Gevorgyan, there are various estimates indicating that
the tax burden is not the only obstacle to the development of SMEs.
He said the easing of the tax burden for SMEs needs to be done
gradually and step by step as the experience shows that when it is
done abruptly it has no effect.
Gevorkyan said as a provisional solution the government introduced
turnover tax and patent fees, which significantly reduce the tax
burden and simplify taxation administration.
On January 1, 2013 the government introduced turnover tax for small
and medium-sized enterprises with an annual turnover of up to 58.35
million drams, replacing by it the previous profit and income taxes.
The amount of this tax ranges from 3.5 % of the annual
income, set for trade outlets to, 20% for notary
offices. ($ 1 - 409.61 drams). -0- - See more at:
http://arka.am/en/news/economy/armenia_not_ready_for_abolition_of_taxes_for_small _and_medium_sized_enterprises_head_of_national_cen/#sthash.Chv5RjiH.dpuf
YEREVAN, September 18. / ARKA /. Armenia is not ready for abolition
of taxes for small and medium-sized enterprises, according to
Karen Gevorkyan, the deputy director of the National Centre for the
Development of Small and Medium-Sized Enterprises.
"Tax exemption is a much more complex issue than it may seem. Of
course, everybody realizes that such a move could provide a strong
incentive for the development of SMEs. However, it should be enforced
based on serious research and preparedness of the system for it,"
he said to journalists.
According to Gevorgyan, there are various estimates indicating that
the tax burden is not the only obstacle to the development of SMEs.
He said the easing of the tax burden for SMEs needs to be done
gradually and step by step as the experience shows that when it is
done abruptly it has no effect.
Gevorkyan said as a provisional solution the government introduced
turnover tax and patent fees, which significantly reduce the tax
burden and simplify taxation administration.
On January 1, 2013 the government introduced turnover tax for small
and medium-sized enterprises with an annual turnover of up to 58.35
million drams, replacing by it the previous profit and income taxes.
The amount of this tax ranges from 3.5 % of the annual
income, set for trade outlets to, 20% for notary
offices. ($ 1 - 409.61 drams). -0- - See more at:
http://arka.am/en/news/economy/armenia_not_ready_for_abolition_of_taxes_for_small _and_medium_sized_enterprises_head_of_national_cen/#sthash.Chv5RjiH.dpuf