A Cabinet meeting was held today, chaired by Acting Prime Minister Nikol Pashinyan.

Before discussing the agenda, the Acting Prime Minister referred to the situation on the Armenian-Azerbaijani border and the situation inside Armenia.

The government approved the draft law On Amending the Tax Code of the Republic of Armenia in an effort to solve the VAT-Profit Tax-related problems faced by real estate developers following the revision of the real estate taxation system. The bill provides that the amount of VAT or profit tax due for real estate alienation transactions shall be calculated at the rate of 80% of the asset’s approximate market value.

The government next decided that the Ministry of Education, Science, Culture and Sports will see a budget increase of 51,400 thousand drams in 2021, which is to be reallocated to the Urban Development Committee with a view to developing design and cost-estimate documents necessary for 144-seat modular kindergartens to be built in 10 communities. According to the reference note, 5 nursery-kindergartens will be built in Armavir Marz, 3 - in Lori Marz, one - in Kotayk Marz and another one in Shirak Marz of Armenia.

The government passed a decision establishing that the balance of overpayment recorded as of January 1, 2018, and the amounts different from the overpayment shall be returned to the taxpayer’s unified account without the taxpayer’s application. The taxpayers will have the opportunity to use the amounts returned to repay their social payment-related liabilities.

According to the data available in the SRC database, as of May 1, 2021, there are 35935 taxpayers with overpayments; the total amount overpaid is 4549.3 thousand drams. At the same time, about 89% of such taxpayers (about 32,000 taxpayers) have overpayments of 1 to 100,000 drams; 35 taxpayers have overpayments of more than 10 million drams, the total amount of which is about 1,800 thousand drams.