The new law regarding IT tax privileges in Armenia has given new opportunities for startups, and approximately 100 tech companies have already expressed their interest in it by applying to the Armenian Ministry of High Tech Industry.
The law on State Support for Information Technologies sector, which has been active since May 18th, focuses on the prosperity of a knowledge-based economy.
According to the representatives of the ministry, the number of applicants is growing day by day. The first and second sessions of the certifications commission have already granted tax privileges to 41 startups.
The applicant startups are engaged in diverse directions such as engineering, e-shopping, web-design, mobile applications, payment systems, e-testing, etc.
Due to the operations of these 41 companies alone, 200-240 workplaces will be created.
First of all this law gives faith, hope and also vigor to new, beginning companies that the government is maximally supporting, in person of our minister’s great efforts, the development of this sector”
Arsen Baghdasaryan also mentioned that the IT tax privileges in Armenia assist the companies in the initial period of their existence and without which the beginning would be rather expensive.
This new law also attracts Armenian experts from all over the world, including repatriates.
For example, several months ago, two Armenian brothers participating in the Dilijan Startup Innovative Technologies Conference found out about the tax privilege law. Then they made up their minds to leave behind their own business in France and return to Armenia. Now they have 10 employees who work in their startup and are sure that the tax privilege support from the government will ensure their growth and development.
Other repatriates – Diana (data processing expert) with her Austrian husband settled in Armenia and are in the process of hiring employees. Lusine Mnatsakanyan from the Netherlands is currently employing 5 employees in her newly-established logistic shipment startup.
The new law is granting 0% profit tax and only 10% income tax to startups.
There are particular requirements for the startup to be eligible to apply. Some of those requirements are that the number of employees of the startup should not be more than 30, and those startups should not be established from the re-organization of another business (Armenia tax privileges for startups attracts IT experts from around the world, ARMENPRESS (26 June, 2019) (in English)).