In 2021, the rate of mandatory funded pension will increase

06.04.2021

The funded pension payment is the payment made by a participant or another person in favor of a participant in order to receive a mandatory or voluntary funded pension. Mandatory participants of the system are employees born after 1974, individual entrepreneurs, notaries, and those who are employed for the first time after 2014. The funded pension payment is 10% of a person's monthly income. If the income of the participant does not exceed the threshold of 500.000 AMD 3.5% is paid by the person, and the other 6.5% by the state. If the income varies in the range of 500.001 to 1.020.000 AMD, the state pays 32.500 AMD, and the participant- the difference between 10% of the income and 32,500 AMD. If the monthly income of an individual exceeds 1.020.000 AMD, the state pays 32.500 AMD, and the participant - 69.500 AMD. Suppose, an individual receives a gross salary of 650.000 AMD under an employment contract. Its mandatory funded pension payment will be 32.500 AMD (650.000 * 10% -32.500). If the employee's monthly income is 400.000 AMD, his mandatory funded pension payment will be 14.000 AMD (400.000 * 3.5%). From January 1, 2022, the mandatory funded pension payment for the income up to AMD 500.000 will be 4.5%. For income ranging from 500.001 AMD to 1.020.000 AMD, it will be the difference of 10% of income and AMD 27.500. In case of monthly income more than 1.020. 000 AMD, the payment will make 74.500 AMD. https://triple-c.am/arm/

How to document e-commerce?

According to article 380.1 of the Tax code, an electronic cash register may be used by companies and individual entrepreneurs to place orders for the delivery of goods, the provision of services, or the execution of works within the framework of orders accepted through the website or electronic applications (electronic trading platforms). An electronic cash register is software that enables you to generate an electronic cash register electronic receipt for the delivery of goods, services, or work sold through a website or electronic application (e-commerce platform). The electronic receipt is formed by transmitting electronically the information to the electronic systems of the tax authorities, obtaining a fiscal number from the tax authorities, and reflecting the information to be printed on the electronic receipt.

06.04.2021

When is the stamp duty paid at the expense of the employer? When is it subject to return to the employee?

According to the Law of the Republic of Armenia "On compensation of damage caused to life or health of the military personnel during the defense of the Republic of Armenia", the stamp duty is required to be paid by residents of the Republic of Armenia working in Armenia or outside Armenia underemployment or civil law contracts, and non-residents working in Armenia underemployment or civil law contracts, individual entrepreneurs and notaries. According to the same law, the above-mentioned persons do not pay stamp duty when they work under only one employment contract and whose salary after all deductions (taxes, other mandatory payments (including stamp duty) defined by that employment contract) does not exceed the minimum salary established by the RA legislation. In this case, instead of the mentioned persons, the stamp duties are paid by the employer paying the income of the given persons at his expense. Let's say, the employee receives a gross salary of 92.000 AMD within the framework of the only employment contract. After deducting taxes and other mandatory payments (including stamp duty), the net salary will be equal to 67.540 AMD. As the net salary does not exceed the minimum salary defined by the RA Law "on Minimum Monthly Salary" - 68.000 AMD, the stamp duty is paid by the employer at his own expense. Thus, the employee is paid 68.540 AMD. Let's answer the question when the stamped payment is subject to return to the employee. According to the Law of the Republic of Armenia “On compensation of damage caused to life or health of the military personnel during the defense of the Republic of Armenia”, if a natural person works under an employment contract at the same time, is an individual entrepreneur or notary then that individual is entitled to a refund of the stamp duty paid on more than one tax basis. The stamp duty can be reimbursed to those individuals who work under an employment contract with more than one employer or receive income under more than one civil contract for the performance of work or services during one reporting period․

06.04.2021