TK ALERT 31

Parliament Bills

 

AMENDMENTS TO THE ADMINISTRATIVE PROCEDURE CODE

A bill has been adopted by the Parliament, according to which non-governmental organizations will have the right to do representation in court on the issues of protection of the legal interests and rights of their beneficiaries with disabilities.

Such claims can be made in court only by the organizations whose charters define the protection of the rights of persons with disabilities as a goal.

The bill has been adopted by Parliament of the Republic of Armenia in the second reading.

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AMENDMENTS TO THE LAW ON JOINT STOCK COMPANIES

A draft bill is being circulated in the Parliament, which implements the employee shareholding mechanisms.

In particular, the company may, in accordance with the procedure established by the charter or approved by the general meeting, place among its employees the company's shares and such derivative financial instruments for which the final settlement of liabilities can be carried out by the company's shares

Employee shares or derivative financial instruments are placed (provided) between employees with their written consent.

Employee shares or derivative financial instruments may be provided without any payment, and the amount paid for the shares may be lower than the par value of the shares of the relevant type or class of the company:

The draft bill has been adopted by Parliament of the Republic of Armenia in the first reading.

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AMENDMENTS TO THE RA LAW ON NORMATIVE LEGAL ACTS

 A bill has been adopted by the Parliament, according to which in case of contradictions between old and new laws that have entered into force,  should be applied a legal act that has entered into force later.

The bill has been adopted by Parliament of the Republic of Armenia in full and has entered into force.

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AMENDMENTS TO THE RA CIVIL CODE

 A bill has been adopted by the Parliament, according to whichthe pledgor and the pledgee may prescribe in the agreement of movable property pledge the right of the pledgor or its authorized person to cross the state border in a vehicle pledged by the latter, or to restrict it:

The bill has been adopted by Parliament of the Republic of Armenia in the first reading.

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TAX Legislation

 

EXEMPTION FROM INCOME TAX

The draft on Amendments to the Tax Code of the Republic of Armenia provides for exemption from income tax in the amount of the value of cash and government bonds transferred to the funds for the purpose of forming and (or) replenishing the inviolable capital (Endowment Fund), as well as in the amount of income received from the management of inviolable capital (Endowment Fund).

The draft was adopted by the National Assembly in the first reading on 19.04.2021.

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RECALCULATION OF THE INCOME TAX REFUND PAYMENT

The draft on Amendments to the Tax Code of the Republic of Armenia provides that after the refund of income tax payment in the clarified (simplified) calculation of income tax or as a result of an audit, or in the event of a change in the previously declared income tax liability for equated wages and payments of an individual who is an employee, as a result of the execution of the court decision or the decision of the appeal commission, the amount returned will be recalculated.

The draft is under consideration by the tax authority.

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DEFINITION OF A NEW PROCEDURE FOR NOTIFICATION OF INSTRUCTION FOR TAX AUDIT

The draft on Amendments to the Tax Code of the Republic of Armenia provides for submitting an instruction to the taxpayer to familiarize with the electronic management system by posting it on the taxpayer's personal page or by posting public notifications on the official notification website of the Republic of Armenia, and in the absence of such notification, by sending an e-mail to the taxpayer's authorized representative in the electronic management system for submitting reports of the tax authority.

The draft is under consideration by the tax authority.

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DEFINING A NEW TYPE OF TAX STUDY

The draft on Amendments to the Tax Code of the Republic of Armenia provides for a case study as a type of onsite tax audit in order to study the correctness of tax calculation within the framework of tax control.

The draft is under consideration by the tax authority.

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NEW PROCEDURE FOR RETURNING VAT REFUNDS

The draft on Amendments to the Tax Code of the Republic of Armenia provides for a new procedure according to which, as a result of reducing the period for the return of VAT reimbursable amounts, it is provided for the provision of working capital of taxpayers and the improvement of the VAT refund mechanism. In particular, the draft proposes to refund VAT based on the results of each reporting month, to apply a single approach to VAT refunds, and etc.

The draft has been included to the agenda of the National Assembly of Armenia

 

Financial Sphere

 

CENTRALIZED REGISTRY OF BANK ACCOUNTS

Hereinafter, information about bank accounts opened and closed (including those closed in the course of 5 years preceding entering into force of the draft law being discussed), as well as safe deposit boxes provided and ceased being used (including those which were ceased being used in the course of 5 years preceding entering into force of the draft law being discussed) in commercial banks conducting activity in the territory of the Republic of Armenia, in particular – account number of the bank account of the customer of the bank, dates of opening and closing of bank account, as well as providing and cessation of using of bank safe deposit box, identification document details of the customer and authorized persons thereof, as well as relevant data on the bank – will be provided to the Central Bank by the commercial banks. This information will be provided for the purpose of inclusion thereof into the centralized registry of bank accounts. Draft Law on Making Amendments to RA Law on the Central Bank stems from 2019-2022 RA Anti-Corruption Strategy approved by Government Decree N 1332-N on October 3, 2019. On May 4, 2021 the draft law was included into the agenda of regular sessions of the National Assembly.

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AMENDMENTS TO THE LAW ON COMBATING MONEY LAUNDERING AND TERRORISM FINANCING

The following amendment are proposed to be made to RA Law on Combating Money Laundering and Terrorism Financing:

  1. Hereinafter, persons which have conducted or are conducting state, political or public functions not only in foreign countries and jurisdictions, but also in Armenia, as well as persons which have conducted or are conducting significant functions in international organizations, shall be considered as politically exposed persons,
  2. reporting entities, as well as employees and representatives thereof shall be prohibited from notifying the person, information about which is being provided to the authorized entity, as well as other persons (except, if applicable, for members of the financial group) about provision or non-provision of report or other information;
  3. trusts and other foreign entities not considered as legal entities shall fall within the scope of the law. In order to identify ultimate beneficial owners of such customers and to check their identities reporting entities shall have to obtain thorough information on founders, managers, beneficiaries (including classes of beneficiaries), protectors (in case of applicability) of such entities and other natural persons executing real (factual) control over that entities or other similar functions and the powers of such persons.

Draft Law on Making Amendments to RA Law on Combating Money Laundering and Terrorism Financing the draft law was included into the agenda of regular sessions of the National Assembly on May 4, 2021.

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