BENEFICIARIES

Commercial organizations registered in the Republic of Armenia, subsidiary companies, branches and representative offices of legal entities, including branches and representative offices of foreign legal entities registered in the Republic of Armenia, as well as sole proprietors registered in the Republic of Armenia.
The field of activity of business entities applying for state support must correspond to, or include, the economic activities eligible for state support as defined by the classifiers of economic activities approved by the Government of the Republic of Armenia.

CONTENT

State support shall be provided to business entities for the following purposes:

1. Hiring new employees.
   State support shall be granted in the amount of 60% of the personal income tax calculated on the salary and other payments equivalent thereto of a new employee. The status of a "new employee" shall be maintained from the 1st day of the month in which the employee commences professional employment within the meaning of the law, until and including the last day of the month that includes the date on which three calendar years have elapsed from such commencement date.

2. Training and retraining of personnel performing professional work.
   State support shall be granted for the training and retraining of personnel performing professional work that is necessary for carrying out activities defined under the economic activity classifications eligible for state support as established by the Government. The support shall be provided in the amount of 50% of the personal income tax calculated during the reporting period on the salary and other payments equivalent thereto of an employee performing professional work who has completed the training or retraining program.

For employees benefiting from the tax incentive providing for taxation at a 10% personal income tax rate, the amount of state support granted to a business entity shall be calculated based not on the personal income tax amount calculated during the reporting period on salaries and other equivalent payments, but rather on an amount equal to 20% of such salaries and other equivalent payments for the same reporting period.

https://www.arlis.am/hy/acts/225843

 

LIMITATIONS

An application for state support shall be rejected if:

• As of the date of submission of the application, a shareholder or participant holding 51% or more of the shares or participation interest in the applicant business entity, or the sole proprietor, is also a shareholder or participant holding 51% or more of the shares or participation interest in, or is a sole proprietor of, a business entity that has been deprived of the right to receive state support.

• As of the day preceding the date of submission of the application, the applicant business entity has outstanding liabilities exceeding AMD 100,000 with respect to revenues administered by the tax authority.