Thursday, 13 March 2014
Basic principles of State support for IT industry streamlined
At today’s meeting, the Government approved the draft law “On State support of information technologies,” as well as the bills on amendments to the laws “On profit tax” and “Income tax.”
As Minister of Economy Vahram Avanesyan noted at the Government Press Center-hosted press conference following the Cabinet sitting, the bills shall govern the basic principles of State support for IT industry.
A number of privileges are scheduled for the IT sector, in particular for legally certified organizations - the use of 0 percent rate of profit tax, 10 percent income tax rate, regardless of the size of the monthly taxable income.
According to the Minister, the use of these benefits will contribute significantly to the formation of startups; creation of new jobs, improvement of Armenia’s competitiveness in the region and the rating of the country.
According to Vahram Avanesyan, the IT sector has been growing dynamically, with approximately 23 percent average annual growth registered in 2008-2012. Despite this fact, research and studies have shown that Armenia is beginning to lag behind the countries in the region in terms of competitiveness, which have come to provide significant benefits.
“We expect that this initiative will enable some 40-60 startups to start operating within the next 3-5 years in the Republic of Armenia,” the Minister said.
