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ARMENIAN IT STARTUPS TO GET TAX RELIEF
YEREVAN, June 13. /ARKA/. Armenia's parliament passed in the first
reading the bill about state support in IT sector and amendments to
the country's laws about income tax and profit tax on Thursday.
The first deputy minister of economy Garegin Melkonyan said the law
envisages a new system of state support to IT. He said IT sector is
a priority and is quite a promising field that may contribute to the
country's economic development. The bill suggests creating favorable
conditions for start-up companies in terms of taxation.
A simplified procedure is set for creating start-ups that will have to
pay 0% income tax and only 10% profit tax during the first three years.
Both new IT companies and software developer groups of not more than
15 employees that have operated without registration so far and have
IT promotion ideas can take the advantage of the bill, Melkonyan said.
The deputy minister also said the new tools will allow creating up
to 300-350 new jobs every year and at least triple the number of
start-ups every year. In particular, the privileges will help bring
the number of start-ups to 30 compared to about 10-12 per year today.
In 2000, Armenian government announced IT sector is of priority in
the country's economic development. As of January 1, 2014, there were
over 380 IT companies in Armenia, 159 of them have foreign capital
involved. Armenia's IT sector records about 20-25% growth every year.
Its share in the country's GDP is 3.8%. IT growth was 22% as of the
end of 2013. Annual turnover of the sector is $380 million. According
to the country's IT development strategy, the turnover is expected
to rise to $1 billion by 2018. -0--
- See more at:
http://telecom.arka.am/en/news/start_up/armenian_it_startups_to_get_tax_relief/#sthash.BhF6bEcO.dpuf
YEREVAN, June 13. /ARKA/. Armenia's parliament passed in the first
reading the bill about state support in IT sector and amendments to
the country's laws about income tax and profit tax on Thursday.
The first deputy minister of economy Garegin Melkonyan said the law
envisages a new system of state support to IT. He said IT sector is
a priority and is quite a promising field that may contribute to the
country's economic development. The bill suggests creating favorable
conditions for start-up companies in terms of taxation.
A simplified procedure is set for creating start-ups that will have to
pay 0% income tax and only 10% profit tax during the first three years.
Both new IT companies and software developer groups of not more than
15 employees that have operated without registration so far and have
IT promotion ideas can take the advantage of the bill, Melkonyan said.
The deputy minister also said the new tools will allow creating up
to 300-350 new jobs every year and at least triple the number of
start-ups every year. In particular, the privileges will help bring
the number of start-ups to 30 compared to about 10-12 per year today.
In 2000, Armenian government announced IT sector is of priority in
the country's economic development. As of January 1, 2014, there were
over 380 IT companies in Armenia, 159 of them have foreign capital
involved. Armenia's IT sector records about 20-25% growth every year.
Its share in the country's GDP is 3.8%. IT growth was 22% as of the
end of 2013. Annual turnover of the sector is $380 million. According
to the country's IT development strategy, the turnover is expected
to rise to $1 billion by 2018. -0--
- See more at:
http://telecom.arka.am/en/news/start_up/armenian_it_startups_to_get_tax_relief/#sthash.BhF6bEcO.dpuf