In 2014 the RA Law “On State Support of the Information Technology Field” was adopted, as a result of the state policy to encourage companies in the information technology sector. It provides state support in the form of tax benefits to companies operating in this field. The right to tax benefits established by the law is confirmed by a certificate issued by the Ministry of High-tech Industry.
What kind of state support is provided to the entities in the field of information technology?
The tax benefits intended as state support refer to profit tax and income tax.
- In the sense of the RA Law “On Profit Tax”, the income received from the sale of information technologies by certified resident entities during the validity period of the certificate is not regarded as income.
- According to Article 10 of the RA Law “On Income Tax”, the certified entity shall calculate income tax at the rate of 10 percent from the salary and the equivalent income paid to the employees and during the validity period of the certificate.
Who can apply for the state support?
- Entities must be created exclusively for the purpose of carrying out the types of activities defined by the law,
- They must not be created as a result of the reorganization of another entity and are not a subsidiary company of another entity.
- The number of employees of the entity should not exceed 30 at the time of submitting the application for a certificate and throughout its validity period.
What are the dates of applying for the state support?
Entities should apply for certification within 3 months from the moment of state registration.
Moreover, the period for state support has been extended until December 31, 2023. Due to this change, the deadline for applying to receive the certificate is set as November 1, 2023. With regards to the certificates that were issued after January 1, 2019, they will be valid until December 31, 2023 inclusive.
We are happy to inform you that our team will gladly assist you in this process.