Armenian Revenue Committee to Refund Taxes for Seasonal Workers
The Armenian Revenue Committee announced its decision to refund taxes collected from seasonal workers. This change comes in response to recent protests against the additional taxation of labor migrants, as noted by the Committee's chairman, Rustam Badasyan.
The refund is intended as a temporary measure, with plans to release a draft law on the e-draft.am portal for public discussion regarding a permanent solution. Previously, the Committee imposed taxes on Armenian citizens working abroad while remaining residents of Armenia, defined as those spending more than 183 days in the country annually. Under this rule, individuals were required to pay the difference between the foreign tax rate and Armenia's rate. For instance, if the tax rate in Russia is 13% and in Armenia it is 20%, the individual would owe an additional 7% in Armenia. This requirement existed for some time, but verification of foreign income was not feasible until Armenia ratified an agreement in 2022 for electronic tax information exchange among CIS countries.
According to the new legislative initiative, Armenian citizens working abroad will no longer face taxation in Armenia. If the Revenue Committee receives confirmation from foreign tax authorities about their employment abroad, they will not incur additional tax obligations, regardless of the tax rate applied overseas. It is noteworthy that this requirement affected only a limited number of citizens, as most labor migrants typically stay in Russia or other countries for over six months or pursue long-term residency. Notifications for additional payments were sent to only 1,005 individuals, leaving the majority of seasonal workers unaffected by the new draft law for the time being.
Recently, residents of Gegharkunik, who travel to Russia for work, protested by blocking the Yerevan-Martuni highway, demanding the cancellation of the additional income tax. The Governor of Gegharkunik, Karen Sargsyan, encouraged them to await the outcomes of the discussions, confirming that the Revenue Committee currently does not require tax payments.
The refund is intended as a temporary measure, with plans to release a draft law on the e-draft.am portal for public discussion regarding a permanent solution. Previously, the Committee imposed taxes on Armenian citizens working abroad while remaining residents of Armenia, defined as those spending more than 183 days in the country annually. Under this rule, individuals were required to pay the difference between the foreign tax rate and Armenia's rate. For instance, if the tax rate in Russia is 13% and in Armenia it is 20%, the individual would owe an additional 7% in Armenia. This requirement existed for some time, but verification of foreign income was not feasible until Armenia ratified an agreement in 2022 for electronic tax information exchange among CIS countries.
According to the new legislative initiative, Armenian citizens working abroad will no longer face taxation in Armenia. If the Revenue Committee receives confirmation from foreign tax authorities about their employment abroad, they will not incur additional tax obligations, regardless of the tax rate applied overseas. It is noteworthy that this requirement affected only a limited number of citizens, as most labor migrants typically stay in Russia or other countries for over six months or pursue long-term residency. Notifications for additional payments were sent to only 1,005 individuals, leaving the majority of seasonal workers unaffected by the new draft law for the time being.
Recently, residents of Gegharkunik, who travel to Russia for work, protested by blocking the Yerevan-Martuni highway, demanding the cancellation of the additional income tax. The Governor of Gegharkunik, Karen Sargsyan, encouraged them to await the outcomes of the discussions, confirming that the Revenue Committee currently does not require tax payments.