On December 22, 2023, the National Assembly approved the legal act ՀՕ-420-Ն in an accelerated procedure during its first and second readings. This act introduces amendments and additions to the RA Law "On State Support of the Information Technology Sector" and also modifies the RA Tax Code.

In essence, certified business entities, acting as tax agents, are now required to collect and remit a 10% income tax from the payable salary and other payments equivalent to the salary (the income tax rate without tax privileges remains at 20%).

Prior to January 1, 2024, certified entrepreneurs enjoyed a profit tax privilege: the actual payable profit tax from tech activities was 0, with no taxable object generated.

As of January 1, 2024, the profit tax rate for organizations is set at 18%, and for individual entrepreneurs, it is 23%.

It's important to note that sole proprietors, in addition to the flat profit tax of 23%, are also subject to social tax and stamp duty based on the gross income amount.

12 January 2024, Friday | 661