EY Armenia Tax Alert | Launch of the unified platform of electronic services for individuals, March 2023

Facts

The Armenian tax authority has introduced the unified platform of electronic services for individuals which is accessible at: https://self-portal.taxservice.am/. This platform allows to easily file personal income tax returns.

Additionally, by using the "Yes em" national system for identification, Armenian citizens can register with the tax authority in a simplified way, get a Taxpayer Identification Number (TIN), view their earnings and social contributions, file the "Personal income tax and social contribution calculation (declaration)" and receive reimbursement for expenses.

It should be reminded that prior to filing a declaration with the tax authority an individual needs to go through the identification process and obtain an electronic signature.

There are two main options for identification on the “Yes em” platform:

1.       Mobile Phone (mID):

• Obtain an ID SIM card from any customer care center of a mobile operator with your ID card and phone.
• Replace your current SIM with the ID SIM, activate it, and then enable the electronic signature service either at the customer care center or online.

2.       Identification Card with Electronic Chip (eID):

• Ensure you have an ID card with an electronic chip (issued by February 15, 2023) and its PIN/PUK codes.
• Use a card reader (available at EKENG CJSC) to activate your electronic ID and signature online.

If there is an active electronic ID and signature, there is no need to take any further steps.

The system supports three languages: Armenian, English, and Russian.

There are penalties for the failure to file the tax return on time. A warning will be issued for the first violation, followed by penalties for any subsequent failures to file.

Who’s affected?

• Citizens of the RA who as of 31 December 2023 hold positions of state service, community service and/or public service, as defined by the RA Law on Public Service,
• Resident citizens of the RA who as of 31 December 2023 are (were) participants (shareholders, equity holders or members) of a resident commercial entity that has declared a gross income of AMD1 billion or more for 2022,
• Resident citizens of the RA who are classified as “beneficial owners” within the framework of the RA Law on Combating Money Laundering and Terrorism Financing, i.e., individuals who:

a. own, directly or indirectly, 20% or more of the voting shares (stocks or units) of the given legal entity or hold, directly or indirectly, 20% or more ownership share in the charter capital of such legal entity,

b. exercise real (actual) control over such legal entity by other means,

c. are official persons carrying out general or daily management of such legal entity’s activity if no individual meets the requirements of clauses a and b above,

• Resident citizens of the RA who received a borrowing of AMD20 million or more during 2023.

How EY can help?

• Assisting with analyzing whether the resident citizens of the RA fall under the criteria for filing the annual personal income tax declaration for the tax year of 2023;
• Assisting within filing in the annual personal income tax declaration and filing it with the Armenian tax authority. 
• Assisting with the registration process.

Contacts

For additional information, please contact:

Kamo Karapetyan | Partner | Head of Tax Practice at EY in Armenia
EY Armenia
Vazgen Sargsyan 2, Kamar Business Center, 0010, Yerevan, Armenia
Office: +374 (60) 50 7777
Mobile: +374 (99) 88 67 00
Kamo.Karapetyan@am.ey.com

Mikayel Arzumanyan | Manager | Tax & Law
EY Armenia
Vazgen Sargsyan 2, Kamar Business Center, 0010, Yerevan, Armenia
Office: +374 (60) 50 7777
Mobile: +374 (44) 80 80 05
Mikayel.Arzumanyan@am.ey.com