Armenian authorities are preparing significant changes for small businesses. Prime Minister Nikol Pashinyan announced plans to raise the microbusiness regime limit from the current 24 million to 50 million drams, which will almost double the opportunities for entrepreneurs to operate under a preferential system.
According to Pashinyan, the current turnover tax model hinders company development and does not stimulate their growth. He noted that existing rules, especially in agriculture and the VAT sector, often push businesses into the shadow economy.
The Prime Minister also supported a gradual transition from the turnover tax system to a VAT model with differentiated rates. The government believes that such an approach will make the tax system more flexible and simultaneously reduce the scale of the informal economy.
