Tax incentives for start-up IT companies in Armenia to be extended for another year | NEWS.am TECH

November 24, 2022  19:39

State help offered within the type of tax advantages to start-up IT firms in Armenia will likely be prolonged for an additional yr till 2023, December 31 inclusive. In the present day the federal government permitted the related draft legal guidelines “On amendments and additions to the Regulation on State Assist of the IT sphere” and “On Amendments to the Tax Code of the Republic of Armenia”.

The federal government informs that based on the laws the newly created, beginning enterprise entities within the sphere of data applied sciences are offered tax exemptions, specifically, by making use of 0% revenue tax charge and 10% revenue tax charge.

Based on data offered by the federal government, the yr 2022 is unprecedented within the variety of purposes and certificates granted. Whereas in 2015-2021 1,074 organizations (sole proprietors) obtained a tax exemption certificates for the interval, in 2022 alone, as of November 8, the variety of licensed organizations is 1,230, of which 1,105 founders are residents of different international locations.

Based on the legislation, enterprise entities are business and non-commercial organizations working within the discipline of data know-how, together with international authorized entities that register a brand new group in Armenia. They can also apply for it, get a certificates and begin and increase their enterprise in Armenia on favorable phrases.

Earlier NEWS.am Tech reported that 4 IT firms in Armenia have been liquidated and 17 are within the means of liquidation over the previous seven months, 4 extra firms have been declared bankrupt and 342 particular person entrepreneurs have been deregistered on account of the 2022 international forex devaluation in Armenia.

In response to a written request from NEWS.am Tech, the Aremnian Ministry of Hello-Tech Trade reported that the overall variety of workers of closed/de-registered enterprise firms over the previous seven months was 585.

When requested what number of IT firms are working in Armenia, the ministry mentioned 2022. As of September, 2,794 enterprise entities have been energetic within the discipline of data know-how and submitted a report back to the Armenian Ministry of Schooling and Tradition.