LEGAL UPDATE
December 2024
PART I: LAWS SUBJECT TO AMENDMENT
1. On making amendments and additions to the Tax Code of the Republic of Armenia regarding
road tax privileges.
2. On making amendments and additions to the Civil Procedure Code of the Republic of Armenia
regarding the procedure for individual and collegial examination of cases, as well as judicial
sanctions and their application.
3. On making amendments and additions to the Labor Code of the Republic of Armenia
regarding the introduction of a digital system for concluding employment contracts.
4. On making additions and amendments to the Tax Code of the Republic
of Armenia regarding the calculation document and the mandatory
information included therein.
5. On making amendments and supplements to the Tax Code of
the Republic of Armenia regarding the accounting of
individual types of income, limitations on deductions
from gross income for the purpose of determining
the tax base, the peculiarities of accounting
for individual types of expenses, and other
deductions provided for by the Code.
6. On making amendments and supplements
to the Tax Code of the Republic of
Armenia regarding turnover tax and its rates.
7. On making amendments to the law on medical assistance
and service to the population regarding the organization
of continuous professional development.
8. On making additions and amendments to the Resolution of the
Government of the Republic of Armenia No. 1260 of October 5, 2017
on the preparation of entry orders in case of cash entry (reception)
at the cash register, registration of cash entries and withdrawals in the
electronic cash book, and the implementation of their calculation in case of
detection of incorrect entries after the final summary of each month.
9. On the amendments to the decision No. 391 of October 5, 2022, of the Public Services
Regulatory Commission of the Republic of Armenia regarding the criteria for the availability of
outdoor coverage of public mobile communication broadband technologies.
10. On the amendments and additions to the decision 'On establishing the procedure for the issuance of a
certificate for professional inspection and proper distribution activities for the purpose of supplier
certification, the procedure for expertise for the wholesale distribution licensing of medicines, and the
list of necessary documents
11. "On making amendments and additions to the decision on the state registration of medicines, re-registration,
extension of the certificate's validity, as well as the rejection of registration, re-registration, and extension of
the certificate's validity, suspension of registration, and recognition of invalidity in the Republic of Armenia.".
PART I: LAWS SUBJECT TO AMENDMENT
(This section of legal updates includes those legal acts that were amended in December 2024, as well as during the eighth session of the National Assembly)
1. On making amendments and additions to the Tax Code of the Republic of Armenia regarding
road tax privileges
Name of the legislative act
On making amendments and additions to the Tax Code of the Republic of Armenia
Change Status:
The law was adopted in second reading and in full on 15.11.2024 and signed on 27.11.2024.
http://www.parliament.am/legislation.php?sel=show&ID=9506.
What the changes are about:
The amendment to the law has amended the provisions on exemption from road tax for using the roads of the Republic of Armenia, as defined by the "Tax Code". In particular, a privilege has been established for road tax payers entering the territory of the Republic of Armenia without transit through the territory of third countries, as well as for road tax payers entering the territory of the Republic of Armenia without transit, as well as the application of a reduced road tax rate on the principle of reciprocity.
In Article 191 of the Tax Code of the Republic of Armenia of October 4, 2016, add part 1.1 as follows:
Article 191. Road tax privileges:
1.1. For the use of the roads of the Republic of Armenia by freight vehicles not registered (unregistered) in the Republic of Armenia, road tax payers entering the territory of the Republic of Armenia without transit may be exempted from paying road tax on the principle of reciprocity, or a reduced road tax rate may be applied to such taxpayers on the principle of reciprocity in the event that the Government determines the country of registration (registration) of freight vehicles, type, quantity, and for the purpose of applying a reduced rate, also the amount of reduction in the road tax rate or the reduced rate.
Clause 6 of Part 2 should be written as follows:
6) In the cases specified in Part 1.1 of this Article, for road tax payers entering the Republic of Armenia with vehicles registered (registered) in other countries, the vehicle registration (registration) certificate.
2. On making amendments and additions to the Civil Procedure Code of the Republic of Armenia
regarding the procedure for individual and collegial examination of cases, as well as judicial
sanctions and their application
Name of the legislative act:
Law On making amendments and additions to the Civil Procedure Code of the Republic of Armenia ՀՕ-488-Ն.
Change Status:
The amendment to the law was adopted in its second reading and in full on 04.12.2024 and signed on 16.12.2024.
This law will enter into force on 27.12.2024..
What the changes are about:
The amendment to the law specifically concerns the procedure for sole and collegial examination of cases, as well as judicial sanctions and their application. In particular, the amendment stipulates that in the event of a change in the composition of the court or a change in the composition of the court, the court, simultaneously with the acceptance of the case (appeal) for proceedings, shall make a decision to start the examination of the case (appeal)
from the beginning or to continue the examination of the case (appeal) from the moment it was interrupted, except for cases where the trial of the case in the court of first instance has been completed.
The Code has also been amended regarding the application by the court of a sanction restricting the exercise of rights against a participant in the proceedings or another person present at the court session.
To remove the words “and the examination of the case (appeal) shall begin from the beginning” from
the second sentence of Part 5 of Article 27 of the Civil Procedure Code of the Republic of Armenia of
February 9, 2018 (hereinafter referred to as the Code).
Article 27. Individual and collegial examination of cases
Old version.
The examination of the case in the court of first
instance and the examination of the appeal in the court of appeal shall be conducted with the unchanged composition of the court, except for the cases provided for by this Code. In the event of a change in the composition of the court or a change in its composition, a decision shall be made to accept the case (appeal) for proceedings, and the examination of the case (appeal) shall begin from the beginning.
New version.
The examination of the case in the court of first instance and the examination of the appeal in the court of appeal shall be conducted with the unchanged composition of the court, except for the cases provided for by this Code.
In the event of a change in the composition of the court or a change in its composition, a decision shall be made to accept the case (appeal) for proceedings.
Complete parts 5.1-5.5 with the following content:
«5.1. In the event of a change in the composition of the court or a change in the composition of the judiciary, the court shall, simultaneously with the acceptance of the case (appeal) for proceedings, make a decision to start the examination of the case (appeal) from the beginning or to continue the examination of the case (appeal) from
the moment of its interruption, except for cases where the trial of the case in the court of first instance has been completed. In the event that the trial of the case has been completed, the court of first instance shall, simultaneously with the acceptance of the case for proceedings, make a decision to start the examination of the
case from the beginning or to resume the case from the stage of trial.
5.2. If the examination of a case (appeal) continues from the moment of interruption in accordance with the procedure provided for in this Article, but the remaining period established by this Code for the examination of the case (appeal) is less than one month, then this period shall be extended by one month, and if the period provided for in this Code for the examination of a given case (appeal) is one month or less than one month, then for the examination of a given case (appeal) by the period provided for in this Code.
5.3. If a decision is made to continue the examination of the case (appeal complaint) from the moment of interruption, the examination of the case (appeal complaint) is continued from the moment the examination of the case (appeal complaint) is interrupted, the composition of the court is changed or the composition of the
court is changed.
5.4. If a decision is made to continue the investigation of the case (appeal complaint) from the moment of interruption, the trial periods that have ended before the moment of interruption of the investigation of the case (appeal complaint) are not restarted, and the participants of the trial cannot perform such actions, the execution
period of which has expired before the interruption of the investigation of the case (appeal complaint) the moment.
5.5. If the examination of the case (appeal) continues from the moment of interruption, the actions taken or decisions made up to the moment of interruption of the examination of the case (appeal) are binding and have legal force in the same way as if there had been no change in the composition of the court or judicial composition.
In Article 153 of the Code, part 1 shall be supplemented with the following paragraph 4:
Article 153. Judicial sanctions and the general procedure for their application
1. On the grounds provided for in the Constitutional Law of the Republic of Armenia, the court has the right to apply the following sanctions to a participant in the proceedings or another person present at the court session.
Old version.
1) reprimand.
2) removal from the courtroom.
3) judicial fine.
New version.
1) reprimand.
2) removal from the courtroom.
3) judicial fine
4) restriction of the exercise of rights.
To supplement the Code with the following content, Articles 155.1 and 155.2:
Article 155.1. Peculiarities of imposing a judicial fine outside a court session
1. If the court finds that a participant in the proceedings has displayed such behavior or committed such an act that may lead to the application of a judicial fine, it shall require that person to provide a written explanation regarding the aforementioned behavior or act. The notice requesting an explanation shall state the circumstances that, in the court's assessment, may lead to the application of a judicial fine.
2. A written explanation may be submitted within five days of receiving the court's notice requesting an explanation.
3. After the expiration of the period set for submitting a written explanation, within a period of 20 days, the court shall decide on the issue of imposing a judicial fine without convening a court session. In the absence of grounds for imposing a judicial fine, the court shall notify the participant in the proceedings thereof within the same period.
Article 155.2. Peculiarities of applying restrictions on the exercise of rights:
1. Restriction of the exercise of a right is the establishment of time or quantitative conditions for the exercise of certain rights defined by this Code by a relevant decision in the event of a participant in the proceedings' systematic abuse of them.
2. The judicial sanction provided for in this Article may be applied only in the case of systematic abuse of the following rights:
1) getting acquainted with the case materials, obtaining their copies, making extracts, photographs, photocopies and copies;
2) expressing objections.
3) presenting evidence and participating in its examination.
4) asking questions to the participants in the trial.
5) submitting motions, giving testimony.
6) presenting a position.
3. The application of a judicial sanction provided for in this Article shall not preclude the actual exercise of the relevant right.
4. If the court finds that a participant in the proceedings has displayed such behavior or committed such an act that may lead to the application of a sanction restricting the exercise of a right, then that person shall be warned in an understandable manner about the court's authority to apply a sanction, the grounds for applying the sanction and the consequences shall be explained. If a participant in the proceedings, after the warning, commits any of the actions provided for in Part 2 of this Article, then the judge shall be authorized to apply a sanction restricting the exercise of a right to that person.
5. If the restriction on the exercise of a right is applied during a court session, it is made in the same court session by a court protocol decision, which enters into force upon publication, and if it is made outside the court session, it is made by a separate judicial act.
6. The court has the right to restore the exercise of the right by the petition of the person subject to the limitation of the exercise of the right or his representative, eliminating the applied temporal or quantitative conditions.
3. On making amendments and additions to the Labor Code of the Republic of Armenia regarding the introduction of a digital system for concluding employment contracts
Name of the legislative act
On making amendments and additions to the Labor Code of the Republic of Armenia.
The status of the change
The amendment to the law was adopted in second reading and in full on 04.12.2024.
http://www.parliament.am/draftreading_docs8/K-907_DR2.pdf.
What the changes are about:
The amendments to the Law specifically relate to the introduction of a digital system for concluding employment contracts. The Agreement is the final part of the Amendment to the Law and transitional provisions: the Law shall enter into force on July 1, 2025, except for the cases provided for by the Law. After January 1, 2026, within a twelve-month period, employers shall enter into a digital system the employment contracts of employees in employment relations with them (if the employment contracts were not concluded through a digital system) under the conditions in force at the time of entry. The procedure for entering into a digital system the employment contracts concluded and continuing before the entry into force of this Law shall be established by the Government of the Republic of Armenia.
In Article 5 of the Labor Code of the Republic of Armenia of November 9, 2004 (hereinafter referred to
as the Code), the following content shall be added to Part 4.1:
Article 5. Internal and individual legal acts of the employer
4.1. After the individual legal act on termination of the employment contract is adopted through the digital system for concluding employment contracts (hereinafter referred to as the digital system), a copy of the act shall be sent to the employee within three days by the notification method specified in the employment contract.
The Code shall be supplemented with the following content in Section 4.2:
4.2. If the individual legal act on termination of the employment contract is not adopted through a digital system, one copy of the act shall be handed over to the employee within three days after its adoption.
4) to supplement with the following content in part 4.3:
"4.3. In the cases specified in part 4 of Article 13 of this Code, as well as in part 2 of Article 14, one copy of the individual legal act on employment, as well as termination of the employment contract, shall be handed over to the employee within three days after its adoption.
To supplement the Code with Chapter 13.1 with the following content:
CHAPTER 13.1
DIGITAL SYSTEM FOR CONCLUDING EMPLOYMENT CONTRACTS
Article 102.1. Digital system for concluding employment contracts and basic principles of application of the system
1. The digital system for concluding employment contracts is a set of data, the purpose of which is to:
1) ensure the conclusion (acceptance) and use of data on the employment contract or individual legal act on the
termination of the employment contract, as well as amendments to them, as well as the possibility of printing
this data after entry;
2) to support the implementation of state control over compliance with labor legislation requirements.
2. The main principles of using the digital system are:
1) ensuring the effectiveness of supervision over compliance with labor legislation requirements;
2) access to the data available in the digital system at any time for the parties of labor relations who have the right to use the digital system in the manner defined by this Code.
Article 102.2. Digital system management, data access, technical requirements and management procedure
1. The authorized body responsible for managing the digital system is determined by the Government of the Republic of Armenia.
2. The inspection body is granted access to the data of the digital system during the implementation of supervisory functions in accordance with the procedure prescribed by law to the extent necessary for supervision within the framework of the powers reserved by law over the requirements of labor legislation, other regulatory legal acts containing labor law norms, and collective and employment contracts.
3. The relevant departments of the State Revenue Committee of the Republic of Armenia are granted access to the data of the digital system to the extent necessary to formalize the employment of an employee in accordance with the procedure established by the legislation or to check the accuracy of submitting an application for
registration for an employee, as well as to carry out tax control over the compliance of the income calculated and paid for the employee, calculated (paid) income tax, social and other mandatory payments, within the framework of the authorities reserved by the legislation.
4. The Migration and Citizenship Service of the Ministry of Internal Affairs of the Republic of Armenia is granted access to the foreign worker's data in the digital system to the extent necessary to ensure the course of administrative proceedings initiated based on applications submitted through the unified electronic platform for the involvement of a foreign worker https://workpermit.am.
5. In the digital system, the employer and employee are given a window for accessing electronic data (personal page). In the event of the emergence of an employment relationship involving a person under the age of sixteen, access to electronic data is granted to the parent or foster parent or adoptive parent or guardian who signs the employment contract.
6. The technical requirements for the digital system, the procedures for providing access to the data of the digital system, and the conclusion of employment contracts through the digital system are established by the Government of the Republic of Armenia.
4. On making additions and amendments to the Tax Code of the Republic of Armenia regarding the calculation document and the mandatory information included therein
Name of the legislative act:
The law on making additions and amendments to the Tax Code of the Republic of Armenia ՀՕ-491-Ն
Change Status:
The amendment to the law was adopted on 04.12.2024 in second reading and in full, signed on 16.12.2024.
The law will enter into force on January 1, 2024, with the exception of those provisions for which the law provides for appropriate software work to ensure implementation..
What the changes are about:
The amendments to the law relate in particular to the settlement document and the mandatory information included therein. This law shall enter into force on January 1, 2025, except for specific cases specified by law, which shall enter into force on the tenth day following the date of completion of the relevant software work ensuring the implementation of the provisions of the law.
In Article 55 of the Tax Code of the Republic of Armenia of October 4, 2016 (hereinafter referred to as the Code), part 4 shall be supplemented with the following points 7.1 and 7.2:
Article 55. The accounting document and its preparation.
4. The following must be included in the tax calculation or adjustment tax calculation:
7.1) ԱՏԳ ԱԱ the code of the goods that are the subject of the transaction, with the exception of real estate and goods defined in point 11 of this part, in the cases, in the manner and within the time limits established by the Government;
7.2) In the case of the supply of stamped goods subject to mandatory marking with control (identification) marks, information on the control (identification) marks and their quantity, in the cases, in the manner and within the time limits established by the Government.
5. On making amendments and supplements to the Tax Code of the Republic of Armenia regarding the accounting of individual types of income, limitations on deductions from gross income for the purpose of determining the tax base, the peculiarities of accounting for individual types of expenses, and other deductions provided for by the Code
Name of the legislative act:
On making amendments and additions to the Tax Code of the Republic of Armenia
Change Status:
The amendment to the law was adopted in its second reading and in its entirety on 04.12.2024.
http://www.parliament.am/draftreading_docs8/K-952-1_DR2.pdf.
What the changes are about:
The implementation of the amendment to the Tax Code is particularly related to the adoption of the Law "On State Support for the High-Tech Sector".
In particular, amendments have been made to the Tax Code in the provisions on the accounting of individual types of income, limitations on deductions from gross income for the purpose of determining the tax base, the peculiarities of accounting for individual types of expenses, and other deductions provided for by the Code.
In subparagraph “b” of paragraph 1 of part 4 of Article 109 of the Code, replace the words “and “b4”” with the words ““b4” and “b5””, and in the same paragraph, add subparagraph “b5” with the following content:
Article 109. Peculiarities of accounting for individual types of income
4. For the purpose of determining the tax base for profit tax, the following are also considered income for profit tax payers:
1) assets received free of charge by commercial organizations, individual entrepreneurs and notaries. In the case specified in this paragraph:
b5. Targeted funds received by commercial organizations and individual entrepreneurs engaged exclusively in the types of activities included in the list of types of activities in the high-tech sector established by the Government and declaring an average annual number of employees and individuals performing work or
providing services under civil law contracts of up to 50 (inclusive) during a given tax year shall be considered income in the tax year when those funds or the assets acquired, constructed, created or developed with those funds are recognized as an expense or loss, regardless of the circumstance of deducting that expense or loss from gross income. In the event that the average annual number of employees and individuals performing work or providing services under civil law contracts declared by a commercial organization or individual entrepreneur during any tax year exceeds 50, the part of the funds not yet considered income shall be considered income in the tax year in which the average annual number exceeds 50.
Subject to the requirements of this sub-clause, this sub-clause shall also apply to those commercial organizations and individual entrepreneurs who, during the tax year, in addition to the income received exclusively from the types of activities included in the list of types of activities in the high-tech sector established by the Government, also received other income, provided that the specific weight of such income in the gross income of the tax year does not exceed ten percent.
For the purpose of applying this subparagraph, the average annual number of employees is determined by dividing the sum of the numbers of employees as of the last day of each full month in a given tax year by the number of full months, and if a commercial organization or individual entrepreneur received state registration
(was registered) in December, then the average annual number of employees is considered to be the number of employees available to the commercial organization or individual entrepreneur as of December 31 of that tax year.
Full months do not include the month of registration of a commercial organization (individual entrepreneur), the months from the date of the state registration agency's entry on the commencement of the liquidation (deregistration) process of a commercial organization (individual entrepreneur) until the day of liquidation
(deregistration), as well as the months of termination of the activities of a commercial organization (individual entrepreneur) for a specific or indefinite period.
The provisions of this subparagraph shall not apply to cases where there are no complete months of activity of a commercial organization or individual entrepreneur during a given tax year, except for cases where the commercial organization or individual entrepreneur received state registration (was registered) in December.
To add a new paragraph 10 to Article 113 of the Code, part 1, with the following content:
Article 113. Limitations on deductions from gross income for the purpose of determining the tax base
Expenses incurred on goods purchased, services received, and work accepted from turnover tax payers in the
types of activities included in the list of types of activities in the high-tech sector established by the government.
Add a new paragraph 4 to Part 2 of Article 121 of the Code:
Article 121. Peculiarities of accounting for individual types of expenses
4) The minimum depreciation period for fixed assets (except for real estate considered as fixed assets) imported, acquired (constructed, developed) or leased (various types) directly by a resident profit taxpayer within the framework of scientific research and experimental development activities that meet the standards established by the Government and have received a positive conclusion from the professional committee formed by the
Government shall be determined at the discretion of the resident profit taxpayer, but not less than one year. The procedure and composition of the professional committee specified in this point, as well as the procedure for qualifying the activities as scientific research and experimental development activities by the committee, shall be determined by the Government. In the event that the positive conclusion provided by the professional committee specified in this point is revoked, tax liabilities shall be recalculated based on the general regulations established by the Code.
Part 6 should be amended as follows:
Old version.
6. For the purpose of determining the tax base of a
resident profit taxpayer and a non-resident profit
taxpayer operating in the Republic of Armenia
through a permanent establishment, gross income is
reduced by the amount of expenses incurred on
scientific research and (or) experimental design
works and services carried out directly by the profit
taxpayer or at its request, in full during the tax year
in which these expenses are incurred.
New version.
6. For the purpose of determining the tax base of a
resident profit taxpayer and a non-resident profit taxpayer operating in the Republic of Armenia through a permanent establishment, gross income is reduced by the amount of expenses incurred on scientific research and experimental development activities that meet the standards established by the Government, carried out directly by the profit taxpayer or at its request, in full during the tax year in which those expenses are incurred.
Article 123, Part 2 of the Code shall be amended as follows:
Article 123. Other deductions:
Old version.
2. For the purpose of determining the tax base of a
resident corporate taxpayer, dividends received are
also deducted from gross income.
New version.
2. For the purpose of determining the tax base of a
resident profit taxpayer, the following are also deducted from the gross income:
1) dividends received,
2) 200 percent of the salary and other payments
equivalent to it calculated for professional work for
personnel engaged exclusively in the types of activities included in the list of types of activities in the high-tech sector established by the Government (except for foreign citizens who do not have the right of residence (residence status) in the Republic of Armenia and stateless individuals) engaged directly by the resident profit taxpayer engaged exclusively in the types of activities included in the list of types of activities in the high-tech sector established by the Government. The deduction specified in this clause is made regardless of the fact that
the salary and other payments equivalent to it are
deducted from the gross income for the purpose of
determining the tax base for profit tax. Subject to the requirements of this clause, this clause also applies to resident profit taxpayers who, in addition to the income received from the types of activities included in the list of types of activities in the high-tech sector established by the Government, have also received other income during the tax year, provided that the specific weight of such income in the gross income of the tax year does not
exceed ten percent.
3) 200 percent of the salary and other payments
equivalent to it calculated for professional work for
personnel engaged in occupations included in the list of professional occupations in the high-tech sector
established by the Government (except for foreign
citizens and stateless individuals who do not have the right of residence (residence status) in the Republic of Armenia) directly involved by a resident profit tax payer in scientific research and experimental development activities that meet the criteria established by the Government and have received a positive conclusion from the professional commission, as provided for in
Article 121, Part 2, Clause 4 of the Code.
The deduction established by this clause is made
regardless of the fact that the salary and other payments equivalent to it are deducted from the gross income for the purpose of determining the profit tax taxation base.
The deductions established by Clauses 2 and or 3 of
this part or their sum for a given tax year cannot exceed this 50 percent of the tax base calculated in accordance with the procedure established by this section (without the deductions established by paragraphs 2 and 3 of this part), except for the case established by paragraph three of this part.
Regardless of the provisions established by paragraph two of this part, the limitation of the amount subject to deduction from gross income not exceeding 50 percent of the tax base shall not apply to resident profit tax payers carrying out scientific research and experimental developments in compliance with the requirements of this part, who have received income exclusively from scientific research and experimental developments or
have received other income at the same time, provided that the specific weight of such income in the gross income of the tax year does not exceed ten percent.
In the event that the positive conclusion provided by the professional commission established by paragraph 4 of part 2 of Article 121 of the Code is revoked, tax liabilities shall be recalculated based on the general regulations established by the Code.
6. On making amendments and supplements to the Tax Code of the Republic of Armenia regarding turnover tax and its rates
Name of the legislative act:
On amending the Law "On Amending the Tax Code of the Republic of Armenia".
Change Status:
The amendment to the law was adopted in its second reading and in its entirety on 04.12.2024.
This law shall enter into force on January 1, 2025 and shall remain in effect until December 31, 2031.
http://www.parliament.am/draftreading_docs8/K-952-2_DR2.pdf.
What the changes are about:
The amendment to the law specifically relates to the turnover tax rate, according to which the rate of income from activities included in the list of high-tech activities defined by the Government is 1%.
Article 12 of the Law HO-285-N of June 12, 2024 "On Amendments to the Tax Code of the Republic of Armenia" shall be amended to rewrite line 8 of the table of Part 1 of Article 258 of the Tax Code of the Republic of Armenia as follows:
Article 258. Turnover tax rates
1. The turnover tax shall be calculated on the basis of the tax base of transactions subject to turnover tax at
the following rates, taking into account the provisions set out in parts 2-4 of this article:
| Income type | Rate (percentage) |
|
| 8) | Income from activities included in the list of high-tech activities defined by the government |
1 |
7. On making amendments to the law on medical assistance and service to the population regarding the organization of continuous professional development
Name of the legislative act:
Law on Amendments to the Law "On Medical Assistance and Services to the Population" ՀՕ-451-Ն
Change Status:
The amendment to the law entered into force on 29.11.2024.
What the changes are about:
The amendment to the law amended the Law "On Medical Assistance and Service to the Population", in particular, the amendment relates to the process of organizing the continuous professional development of senior and middle-level medical workers and the addition of the number of credits for continuous professional development.
Article 33 of the Law HO-42 of March 4, 1996 "On Medical Assistance and Services to the Population"
shall be supplemented with the following content in parts 4.1 and 4.2.
Article 33. The process of organizing continuous professional development
4.1. During each five-year certification cycle, senior and middle-level healthcare workers shall complete the number of CPD credits provided for in Part 4 of this Article by participating in activities selected by them to ensure continuous professional development and all activities included in the list of mandatory continuous professional development activities approved by the Government.
4.2. The procedure and cases for reimbursement of fees for online participation in events organized by foreign and international organizations to ensure continuous professional development, as provided for in Part 6 of this Article, shall be established by the Government.
8. On making additions and amendments to the Resolution of the Government of the Republic of Armenia No. 1260 of October 5, 2017 on the preparation of entry orders in case of cash entry (reception) at the cash register, registration of cash entries and withdrawals in the electronic cash book, and the implementation of their calculation in case of detection of incorrect entries after the final summary of each month
Name of the legislative act:
Decision No. 1401-N of the Government of the Republic of Armenia on making additions and amendments to
Decision No. 1260-N of October 5, 2017
Change Status:
The amendment to the law entered into force on 06.12.2024.
What the changes are about:
The amendment to the law concerns the introduction of amendments and supplements to the law "On the Procedure for Carrying Out Cash Operations, Their Documentation, Registration of the Cash Book and Keeping the Cash Book, as well as Establishing Time Limits for Amounts Given in Cash on Account". In particular, the preparation of an entry order in the event of cash entry (acceptance) into the cash register of an organization or individual entrepreneur, the final summary of cash entry and withdrawal records in the electronic cash book, and the calculation of incorrect entries after the final summary of each month..
The following additions and amendments shall be made to Appendix No. 1 of the Resolution of the Government of the Republic of Armenia No. 1260-N of October 5, 2017 “On the Procedure for Implementing Cash Operations, Their Documentation, Registration of the Cash Book and Maintenance of the Cash Book, as well as Establishing Time Limits for Cash Amounts Given on Account”: After point 23, add point 23.1 with the following content:
23.1. An organization or individual entrepreneur may maintain more than one electronic cash book for the same currency.
After point 28, add the following content: point 28.1
28.1. An electronic cash book is considered registered (re-registered) from the date of submission of the application for registration (re-registration) of the electronic cash book to the State Revenue Committee of the Republic of Armenia.
After point 31, add points 31.1 and 31.2 with the following content:
31.1. In case of cash deposit (receipt) into the cash register of an organization or individual entrepreneur, the entry order is drawn up at the time of depositing (receiving) the cash into the cash register.
31.2. In case of cash withdrawal (payment) from the cash register of an organization or individual entrepreneur, the exit order is drawn up at the time of cash withdrawal from the cash register, with the exception of payments made by voucher, in which case the exit order is drawn up in accordance with the terms specified in paragraph 9 of this procedure.
Paragraph 32 should be drafted as follows:
Old version.
The person responsible for maintaining the
electronic cash book (user) shall record all cash
entries and withdrawals separately, based on each
entry and withdrawal order, according to the
sequence of cash entry and withdrawal, in the
corresponding electronic book, while mandatorily
filling in the number, date, and amount of the entry
and withdrawal order. Entries in the electronic cash
book shall be made based on each entry or
withdrawal order, no later than the day of
summarizing the records of cash entries and
withdrawals in the electronic cash book, as specified
in paragraph 33 of this procedure, inclusive. Data
regarding entry and withdrawal orders in the
electronic cash book shall be recorded according to
the date of the operation’s execution. When paying
cash by voucher, the entry in the electronic cash
book shall be made on the day the cash withdrawal
order is drawn up, within the period specified in
paragraph 9 of this procedure.
New version.
The person responsible for maintaining the electronic cash book (user) shall make entries in the electronic book for all cash entries and withdrawals based on the entry and/or withdrawal orders, according to the sequence of their preparation, except in the case specified in this paragraph, while mandatorily filling in the number, preparation date, and amount of the entry and withdrawal order. Data on the entry and/or withdrawal orders shall be
recorded in the electronic cash book no later than 5
working days following the day of preparation of the
entry and/or withdrawal orders. The entry shall be made according to the date of the operation's execution. After registering the entry and/or withdrawal orders in the electronic cash book, if a new entry and/or withdrawal order with a repeated number is recorded, a new line will be added, and the numbering of the new entry and/or withdrawal order will be done by indicating the corresponding number of the registered order and the
number "I.
In paragraph 33, the first sentence should be amended as follows:
Old version.
Entries of cash deposits and withdrawals in the
electronic cash book are finally summarized once a
month, on the last day of the month, during any
working day following the relevant month, but no
later than the day of making the entry regarding cash
deposits or withdrawals in the electronic cash book
on that working day. When summarizing the entries
in the electronic cash book, the cash balance in the
cash register is filled in with the starting balance
(initial balance) at the beginning of the month and
the ending balance (final balance) at the end of the
month, as well as the total of all deposited and
withdrawn amounts as of the last day of the month.
When making entries for the first time in the
electronic cash book (including after re-entry in the
electronic cash book), the initial balance on the day
of the cash book entry (or re-entry) is filled in by the
responsible person (user), which is considered the
initial balance for the month that includes the date
of the entry (or re-entry). In case of discontinuing
the maintenance of the electronic cash book, the
entries of cash deposits and withdrawals are finally
summarized until the day the electronic
maintenance of the cash book is discontinued, with
the last day preceding that day being considered the last day of the month that includes the date of the
discontinuation of the cash book maintenance.
New version.
"Entries of cash deposits and withdrawals in the
electronic cash book are finally summarized once a
month, as of the last day of the month, during any day of the following month, but no later than the entry of data regarding the entry and/or withdrawal orders for the following month in the electronic cash book. Data regarding the entry and/or withdrawal orders for the following month cannot be recorded until the preceding month has been fully summarized. If the taxpayer does not finalize the summary of cash deposits and withdrawals in the electronic cash book for any given month by the last day of the following month, the final summary for that month will be automatically carried out
by the system on the last day of the following month.
After point 4, add the following content with points 34.1, 34.2, and 34.3 as follows:
34.1. In case an error in the initial balance entry is discovered as of the date of registration (or re-registration) in the electronic cash book, the person responsible for maintaining the electronic cash book (user) shall edit the line containing the erroneous entry according to the procedure specified in point 34 of this regulation.
34.2. If an error is discovered in the entries in the electronic cash book after the final summary of any month, the person responsible for maintaining the electronic cash book (user) shall edit the line containing the erroneous entry according to the procedure specified in point 34 of this regulation. In case an unrecorded entry and/or withdrawal order is discovered, the person responsible for maintaining the electronic cash book (user) shall record the respective entry and/or withdrawal order in the electronic cash book for the month to which the respective entry and/or withdrawal order pertains.
34.3. In the cases specified in points 34.1 and 34.2 of this regulation, recalculation of the calculations for the respective and subsequent months shall be performed.
9. On the amendments to the decision No. 391 of October 5, 2022, of the Public Services Regulatory Commission of the Republic of Armenia regarding the criteria for the availability of outdoor coverage of public mobile communication broadband technologies.
Name of the legislative act:
Decision No. 385-N on making amendments to Decision No. 391 of October 5, 2022, of the Public Services
Regulatory Commission of the Republic of Armenia..
Change status:
The amendment to the law entered into force on December 6, 2024.
What the changes are about:
The amendment to the law pertains to the criteria for the availability of outdoor coverage (hereinafter referred to as Coverage) of public mobile communication broadband (4G/LTE, 5G/NR) technologies by the public electronic communication mobile network operator (hereinafter referred to as the Operator). The criteria for the availability of the Operator's Coverage are provided in the table of this point, in accordance with the operator's
radio coverage performance, ensuring the signal (radio frequency) of the base station that supports the operator’s coverage, with the minimum (boundary) parameters of the operator's radio coverage. Specifically, a change has also occurred in the table of the availability criteria.
In point 1 of the annex defined by the decision, replace the words "outdoor coverage of the (LTE) technology" with "outdoor coverage of the (4G/LTE, 5G/NR) technologies" and rephrase the table of the same point as follows:
The criteria for the availability of outdoor coverage (hereinafter referred to as Coverage) of public mobile communication broadband (4G/LTE, 5G/NR) technologies by the public electronic communication mobile network operator (hereinafter referred to as the Operator) are defined by the table of this point, in accordance with the operator's radio coverage performance, ensuring the signal (radio frequency) of the base station that supports the operator’s coverage, with the minimum (boundary) parameters of the operator's radio coverage. For the purpose of this table, the average signal attenuation factor when penetrating buildings is 10 dB. Ensuring the parameters specified by the table of this point, applying the signal attenuation factor for penetrating buildings, implies at least a 75% probability of successful signal penetration inside buildings.
| Signal (reception) strength (RSRP, SS-RSRP) for uninhabited areas (outdoor areas) and roads (dBm) |
Signal (reception) strength (RSRP, SS-RSRP) for populated areas (outdoor areas) with the application of the signal attenuation factor when penetrating buildings (dBm) |
|
| average | strong | |
| ≥-115 | ≥-105 | ≥-95 |
10. On the amendments and additions to the decision 'On establishing the procedure for the issuance of a certificate for professional inspection and proper distribution activities for the purpose of supplier certification, the procedure for expertise for the wholesale distribution licensing of medicines, and the list of necessary documents
Name of the legislative act:
On the amendments and additions to the Government Decision No. 156 of February 28, 2019, of the Republic of Armenia.
Change Status:
The amendment to the law entered into force on December 15, 2024.
What the changes are about:
The amendment to the decision specifically relates to the ongoing inspections within the first 3 years after obtaining a wholesale distribution license for medicines in the areas of legal entities and individual entrepreneurs holding such licenses, the scope of wholesale distribution activities for medicines, and the provision of inspection reports based on the results of the assessment of compliance with GMP (Good Manufacturing Practice) standards.
In Appendix 1 of the Republic of Armenia Government Decision No. 156-N of February 28, 2019, 'On establishing the procedure for the issuance of a certificate for professional inspection and proper distribution activities for the purpose of supplier certification, the procedure for expertise for the wholesale distribution licensing of medicines, and the list of necessary documents' (hereinafter referred to as the decision), rephrase point 5 as follows:
5. In the territories of legal entities and individual entrepreneurs holding a wholesale drug distribution license, ongoing monitoring shall be carried out annually during the first 3 years after receiving the wholesale drug distribution license, and then once every 2 years, except for cases when the PBG certificate is issued for a longer period.
Point 18, after the words “with the implementation schedule.”, shall be supplemented with new sentences with the following content:
The PBG expert shall, within a maximum of 10 working days after receiving the plan of measures for eliminating and preventing defects, send a notification by e-mail about the agreement with that plan or submit substantiated objections. The Supplier shall, within a maximum of 5 working days, submit a corrected version of the plan of measures for eliminating and preventing defects based on the objections.
Paragraph 20 should be amended as follows:
20. Based on the results of the assessment of GMP compliance, a monitoring report shall be prepared and provided to the supplier within a maximum of 20 working days after the completion of the inspection, in accordance with Form No. 1 of this procedure, if no critical or major deficiencies are found. In the case of such
deficiencies, if the program for the elimination and prevention of deficiencies has been submitted and agreed upon within the time limits established by this procedure, the monitoring report shall be provided within a maximum of 20 working days from the day the report on the program's implementation is submitted. If the
program for the elimination and prevention of deficiencies or its revised version is not submitted within the specified time, the monitoring report on GMP non-compliance shall be provided within a maximum of 60 working days after the completion of the inspection. If a report on the implementation of the agreed program for
the elimination and prevention of deficiencies is not submitted in accordance with the timeline, the monitoring report on GMP non-compliance shall be submitted within a maximum of 20 working days from the specified deadline in the timeline. The monitoring report shall be sent to the supplier via email.
Paragraph 29 should be amended as follows:
29. The GMP certificate is issued for a maximum period of five years, based on the assessment of professional inspection results, which is conducted in accordance with the risk analysis procedure established by the authorized body. After obtaining the license, during the first three years, professional inspections are carried out
annually for legal entities and individual entrepreneurs holding a wholesale distribution license for medicines, and then once every two years, except in cases where the GMP certificate is issued for a longer period. The certificate's validity period is calculated from the last day of the inspection.
In Form No. 1, paragraph 3 should be amended as follows:
3. Scope of activity of wholesale sale of medicines
□ Batch certification (batch release)
□ Supply without batch certification
Type of activity of wholesale sale of medicines
1) Acquisition
2) Import
3) Storage
4) Distribution
5) Export".
7) Item 1 of the list of requested supply processes of Form N 2 shall be reworded as follows:
"1. Scope of activity of wholesale sale of medicines
□ Batch certification (batch release)
□ Supply without batch certification
Type of activity of wholesale sale of medicines
1) Acquisition
2) Import
3) Storage
4) Distribution
5) Export
11. "On making amendments and additions to the decision on the state registration of medicines, re-registration, extension of the certificate's validity, as well as the rejection of registration, re- registration, and extension of the certificate's validity, suspension of registration, and recognition of invalidity in the Republic of Armenia."
Name of the legislative act:
Decision No. 1873-N on amendments and supplements to decision No. 162 of the Government of the Republic of Armenia of february 28, 2019.
Change Status:
The amendment to the law entered into force on 08.12.2024.
What the changes are about:
The legal amendment specifically relates to the changes and additions made to the law concerning the "State registration of medicines, re-registration, extension of certificate validity, as well as the refusal of registration, suspension of registration, and the declaration of invalidity of registration." In particular, the change concerns the deadlines for re-registration of medicines for human use or changes made to their registration documents, the applicant's refusal to proceed with registration, the deadline for re-registration of a medicine, the extension of the validity of a medicine's registration certificate, the term for extending the certificate, and other changes specified by the decision.
In the 4th point, replace the words "however, the validity of the certificate cannot exceed December 31, 2025" with "within the deadlines and conditions established by the decision No. 78 of the Eurasian Economic Commission Council dated November 3, 2016."
Old version.
4. Until July 1, 2021, medicines for human use registered in the Republic of Armenia may be re- registered or changes may be made to their registration documents in accordance with this procedure, but the validity of the certificate cannot exceed December 31, 2025.
New version.
4. Until July 1, 2021, medicines for human use registered in the Republic of Armenia may be re-registered or changes may be made to their registration documents in accordance with this procedure, within the deadlines and conditions established by decision No. 78 of the Eurasian Economic Commission Council dated November 3, 2016.
Paragraph 23 should be written as follows:
Old version.
23. The applicant has the right to withdraw from registration at any stage of the examination. In this case, the examination fee is non-refundable, regardless of the stage of the examination.
New version.
23. The applicant has the right to withdraw from registration at any stage of the examination, in accordance with the procedure established by Article 16, Part 16 of the Law on Medicines.
Paragraph 38 should be written as follows:
Old version.
38. The maximum period for re-registration of a medicine is 31 calendar days, which includes the duration of the examination for registration, with a maximum duration of 21 calendar days.
New version.
38. The maximum duration of the medicine re- registration process is 120 calendar days, which includes the examination period of 110 calendar days.
Paragraph 45 should be drafted as follows:
Old version.
45. The maximum duration of the process for extending the validity of a medicine's registration certificate is 10 calendar days, including the examination period.
New version.
45. The maximum duration of the process for extending the validity of a medicine's registration certificate is 30 calendar days, which includes the examination period of 20 calendar days.
Please provide the content or context of the new sentence you'd like to add to point 6 of Appendix N 2 of the decision, and I will help you formulate it accordingly.
If different dosages (dosages), manufacturing sites (manufacturing sites), and forms of application, packaging, and release of the same medicine are presented in one application, only one medicine is subject to laboratory examination, selected at random.
Point 9 should be written as follows:
Old version.
9. The examination begins after the organization sends a notification of receipt of the application, provided that there are documents confirming the fact of payment of the state duty and the examination fee in any manner not prohibited in the Republic of Armenia.
New version.
9. The examination begins after the organization sends a notification of receipt of the application, subject to the availability of documents confirming the fact of payment of the state fee established for the examination.
Point 10 should be written as follows:
Old version.
10. In the case of submitting an application for the registration of each subsequent dosage form, dosage, manufacturing site, and release form of the same medicine simultaneously, the applicant is granted a 5% discount on the examination fee established by the Government of the Republic of Armenia for their registration.
New version.
10. In the case of submitting documents for the registration (re-registration, extension of the certificate’s validity) of the first dosage form, the first and each subsequent dosage (dosages), manufacturing site(s), and form(s) of application, packaging, and release— excluding the subsequent dosage form—along with documents for aligning the registered medicine’s dossier, a single document confirming the payment of the state fee for conducting the examination, as established for one examination, must be submitted.
Point 11 should be written as follows:
Old version.
11. If the re-registration application or the application for the extension of the certificate's validity is submitted six months before the expiration of the medicine's registration period, the applicant is granted a 5% discount on the examination fee established by the Government of the Republic of Armenia for re-registration and extension of the certificate's validity.
New version.
11. When submitting documents for the registration (re- registration, extension of the certificate's validity) of each subsequent dosage form, new dosage, manufacturing site, indication, application, packaging, and release forms, or for post-registration changes of a registered medicine, documents confirming the payment of the state fee must be provided, according to the rates established for each case.
Point 12 should be written as follows:
Old version.
12. The examination for the registration, re- registration, extension of the certificate's validity, and post-registration changes of medicines with low demand but essential for life may be conducted within the scope of the state order issued by the authorized body. In this case, the applicant only pays the state fee.
New version.
12. The examination for the registration, re-registration, extension of the certificate's validity, and post- registration changes of medicines with low demand but essential for life, including "orphan" medicines, may be conducted within the framework of a state order issued by the authorized body. In this case, the applicant only pays the state fee established for registration.
Point 20 should be written as follows:
Old version.
20. If during the examination it is determined that
the examination fee does not correspond to the
registration case, a recalculation of the fee is made
based on the examination results, and the applicant
is notified in writing about this before the
completion of the examination.
New version.
20. If during the examination it is determined that the amount of the state fee paid for the examination does not correspond to the established rates, the outstanding state fee must be paid within 5 days from the receipt of the notification.
Point 4 should be written as follows:
3. Examination for re-registration purposes
Old version.
45. The duration of the examination is 21 calendar
days.
New version.
45. The maximum duration of the examination is 110
calendar days, which also includes the examination
period for post-registration changes, if necessary. During the examination, after the expiration of the previous certificate's validity, the data regarding the medicine are retained in the registration log, with a note indicating that a re-registration application has been submitted.
Point 48 shall be supplemented with a new sentence with the following content:
If during the examination it is determined that post-registration changes are required, the process is suspended after notifying the applicant, until the submission of the relevant documents and the completion of the examination.
Point 49 should be written as follows:
Old version.
49. The maximum duration of the examination is 5
working days.
New version.
49. The maximum duration of the examination is 20
calendar days. During the examination, after the
expiration of the previous certificate’s validity, the data regarding the medicine are retained in the registration log, with a note indicating that an application for the extension of the certificate's validity has been submitted.
PART II. NEW LEGAL ACTS
(This section of legal updates includes legal acts adopted during the eighth session of the National Assembly)
1. On state support for the high-tech sector.
Name of the legislative act:
Law "On State Support for the High-Tech Sector"
Admission status:
The law was adopted in its second reading and in its entirety on 04.12.2024.
http://www.parliament.am/draftreading_docs8/K-952_DR2.pdf
What the changes are about:
The purpose of the law is to review the state support toolkit and the framework of tax incentives for the high-tech sector, as well as for scientific research activities, with the aim of creating more favorable conditions for ensuring progressive development in the aforementioned areas.
The law proposes to establish tax incentives and the following areas of budget support, including:
1) to redefine and revise the framework of tax incentives provided for by the current legislation for economic entities operating in the high-tech sector,
2) to expand the framework of tax incentives for scientific research and experimental development (R&D) activities. Moreover, the tax incentives proposed in this direction will apply not only to economic entities operating in the high-tech sector, but also to economic entities operating in all areas of scientific research and experimental development.
In particular, tax incentives are proposed, including a 2.5-fold reduction in the turnover tax rate, setting 2 percent instead of 5 percent, professional Provision of the possibility of additionally reducing gross income for the purpose of taxation with profit tax in the amount of 200 percent of the salary paid to the staff performing the work, but not more than 50 percent of the calculated tax base, as well as a reduction in the income tax rate by half for the salary
paid to the professional staff involved in scientific research and experimental development activities and income equivalent thereto, from 20 to 10 percent, and other privileges prescribed by law. With the adoption of the Law "On State Support for the High-Tech Sector", relevant amendments and additions will also be made to the related "Tax Code of the Republic of Armenia", which is conditioned by the revision of the framework of state support instruments and tax privileges for the high-tech sector, as well as for scientific research activities, and the formation of favorable conditions for the implementation of scientific research activities.
LAW OF THE REPUBLIC OF ARMENIA ON STATE SUPPORT
IN THE HIGH TECHNOLOGY SECTOR
Article 1. Subject of the Law:
1. This law establishes the basic principles of state support for the high-tech sector and regulates the relations related to the formation and operation of the system for implementing state support in that sector.
Article 2. Legislation on state support for the high-tech sector
1. The legislation on state support for the high-tech sector consists of this Law, the Civil Code of the Republic of Armenia and other legal acts.
2. If international treaties of the Republic of Armenia establish other norms than those provided for by this Law, the norms of international treaties shall apply.
Article 3. Basic concepts used in the Law
1. The following basic concepts are used in this Law:
1) high technologies - a set of new capabilities, information, knowledge, experience, material resources, which is aimed at developing, creating, producing competitive products in the economy, and which is based on scientific and technical innovations, including information technologies.
2) information technologies - computer-based, in particular software, service or management information systems, as well as all types of technologies used to create, transform, preserve, protect, process, transfer and securely retrieve information in all formats, including data, images (mobile, stationary).
3) platform - an automated software system through which relevant applications are submitted and the provision of state support is organized.
4) hired employee - a person performing work in accordance with an employment or civil law contract.
5) high-tech sector organization or individual entrepreneur - resident legal entities or individual entrepreneurs of the Republic of Armenia, of which at least 90% of the sales turnover from all types of activities declared in the tax calculations for value added tax and (or) turnover tax, during the reporting period for the provision of state support, was formed from types of activities in the high-tech sector. The basis for determining the types of activities in the high-tech sector is the classifiers of types of economic activities declared in the calculations (reports) specified in this point.
6) authorized body - the authorized body developing and implementing the Government's policy in the fields of high technologies, informatization, information technologies and innovation.
7) state support - the amount provided to high-tech sector organizations or individual entrepreneurs from the state budget of the Republic of Armenia each quarter in accordance with Part 4 of Article 5 of this Law.
8) labor migrant - a foreign citizen or a stateless employee who has a legal right to work in the Republic of Armenia and performs professional work. A dual citizen who has the citizenship of the Republic of Armenia is not considered a labor migrant within the meaning of this law.
9) new employee - a professional employee up to the age of 30, who has entered the high-tech sector for the first time and is engaged in occupations included in the list of professional occupations in the high-tech sector defined by the Government.
10) professional work - professional work of personnel engaged in occupations included in the list defined by the Government.
11) reporting period for the provision of state support - in the case of migrants and new employees - a quarter, and in the case of personnel training and retraining - the day of issuing the graduation certificate.
Article 4. Principles and objectives of state support for the high-tech sector
1. State support for the high-tech sector is implemented on the basis of cooperation between the state and the private sector, as well as the principles of publicity.
2. The goal of state support for the high-tech sector is to:
1) increase the competitiveness of high-tech industries,
2) attract new labor,
3) continuously improve the skills of employees,
4) strengthen the country's position as an exporter of products.
Article 5. Implementation of state support in the high-tech sector
1. The types of activities subject to state support in the high-tech sector, according to the classifiers of economic activities, are defined by the Government.
2. State support is provided to organizations or individual entrepreneurs in the high-tech sector (hereinafter also referred to as economic entities) by this Law. Other directions of state support may be defined by the Tax Code of the Republic of Armenia and other legislative acts.
3. The authorized body, taking into account the priorities of the development of the high-tech sector, may develop and submit for approval by the Government other procedures for providing state support.
4. State support is provided to economic entities engaged in the activities specified in the classifiers of economic activities subject to state support defined by the Government:
1) for the involvement of labor migrants who perform professional work and are considered employees of the given economic entity. The state support defined by this sub-clause is provided to the economic entity in the amount of income tax calculated on the salary of the labor migrant and other payments equivalent to it 50 percent.
2) for the recruitment of new employees, including:
a. 100 percent of the amount of income tax calculated on the salary and other payments equivalent to it of new employees, if the quarterly average number of all employees of the economic entity does not exceed 30,
b. 50 percent of the amount of income tax calculated on the salary and other payments equivalent to it of new employees, if the quarterly average number of all employees of the economic entity is 31 or more.
3) For the purpose of reimbursement of educational expenses incurred in the preparation and retraining of personnel performing professional work necessary for carrying out activities defined by the classifiers of economic activities subject to state support approved by the Government, including:
a. in the amount of 50 percent of the income tax calculated on the salaries and other equivalent payments of employees of the economic entity performing professional work, if the quarterly average number of employees of the economic entity does not exceed 30, b. in the amount of 25 percent of the income tax calculated on the salary and other payments equivalent to it of employees of an economic entity performing professional work, if the average quarterly number of employees is 31 or more.
5. In the case of application of subparagraph "a" of paragraph 3 of part 4 of this Article, the compensation also includes the expenses of business trips incurred by the economic entity for the purpose of personnel training and retraining.
6. In the case of application of paragraph 3 of part 4 of this Article, the justifications for personnel training and retraining from the economic entity's funds (certificate, documents substantiating training expenses, etc.) are examined by the authorized body.
7. For the purpose of application of paragraphs 2 and 3 of part 4 of this Article, the average quarterly number of employees is determined as follows:
1) For an operating economic entity, the sum of the numbers of employees as of the last day of each month of the given quarter by dividing by 3.
2) For a newly created (registered) economic entity in a given quarter, by dividing the total number of employees as of the last day of each month in the period from the date of creation (registration) to the end of the quarter by the number of months (including incomplete months) in the period from the date of creation (registration) of the given economic entity to the end of the quarter.
3) If the economic entity was created (registered) in the last month of the given quarter, then the average quarterly number of employees is considered to be the number of employees available to the organization and individual entrepreneur as of the last day of that month.
8. The total amount of state support provided for the reporting period, as defined in paragraphs 1, 2 and 3 of part 4 of this Article, cannot exceed 50 percent of the amount of income tax calculated for all employees of the given economic entity for the same reporting period.
9. State support for new employees, as defined in paragraph 2 of part 4 of this Article, shall be provided for three calendar years from the moment the employee first starts professional work.
10. The procedures for providing state support, as defined in part 4 of this Article, shall be established by the Government.
11. The support, as defined in part 4 of this Article, shall be provided to organizations and individual entrepreneurs operating in the general taxation system and the turnover tax system for the period from January 1, 2025 to January 1, 2032. Moreover, an organization or individual entrepreneur operating in the turnover tax system may continue to use the support after the expiration of the third calendar year following the calendar year in which it began to use the support, if it operates in the general taxation system.
Article 6. Requirements for economic entities
1. The following economic entities may apply for state support:
1) Commercial organizations registered in the Republic of Armenia,
2) Individual entrepreneurs registered in the Republic of Armenia.
2. The scope of activities of economic entities applying for state support must comply with or include the activities defined by the classifiers of economic activities subject to state support established by the Government.
3. Economic entities that meet the requirements established by this Law shall apply for state support on a voluntary basis through the platform.
4. Economic entities shall submit an application for state support through the platform. The procedure for applying for state support and the requirements for the application shall be established by the authorized body.
5. The platform shall automatically approve or reject the provision of state support.
Article 7. Grounds for refusal to provide state support
1. An application for state support shall be rejected if:
1) the economic entity that has applied does not meet the requirements set forth in this Law for economic entities entitled to receive state support.
2) the shareholder or participant of 51 percent or more of the shares of the economic entity that has applied or the individual entrepreneur was a shareholder or participant of 51 percent or more of the shares of an economic entity that has been deprived of the right to state support, as defined in Part 4 of Article 8 of this Law.
3) The data submitted for receiving state support are incomplete or do not comply with the requirements of this Law and other regulatory legal acts.
4) as of the day preceding the date of submission of the application, have income liabilities exceeding 100 thousand drams, controlled by the tax authority, except for income tax liabilities, which must be fully fulfilled.
Article 8. Termination of state support for the high-tech sector
1. The provision of state support specified in Part 4 of Article 5 of this Law shall be terminated if the economic entity has submitted unreliable information for the purpose of receiving state support.
2. The decision on termination of state support shall be made by the head of the authorized body on the basis of the relevant administrative act specified in the Law “On Administration and Administrative Proceedings”.
3. In the event of termination of state support, the economic entity that received state support shall be obliged to return to the state budget of the Republic of Armenia the amounts provided for support in a specific case within the framework of this Law within a ten-day period after being informed of the administrative act specified in Part 2 of this Article.
4. The economic entity shall be deprived of the rights provided in Article 5 of this Law from the right to receive state support defined in Part 4, if within one year two or more violations that constitute grounds for termination are detected in the economic entity.
5. The authorized body shall publish data about the given economic entity on its official website within 3 working days after the adoption of the administrative act defined in Part 2 of this Article.
Article 9. Publicity
1. The list of persons who have received state support, as well as those who have applied for support and been rejected, shall be published on the official website of the authorized body.
2. The names of economic entities that have violated the requirements of this Law shall also be published on the official website of the authorized body.
Article 10. Administrative Register of the High-Tech Sector
1. In order to carry out sectoral accounting for the development of the high-tech sector, the Authorized Body shall maintain the Administrative Register of the High-Tech Sector (hereinafter referred to as the Administrative Register) on the platform.
2. The Administrative Register shall include a database subject to continuous updating on the actual activities of organizations or individual entrepreneurs in the high-tech sector registered (registered) in the Republic of Armenia or their location, main and non-main types of activity, number of employees, foreign participation, volume of manufactured products, services rendered, exports, investments (including foreign), income, imports and other necessary indicators.
3. The Administrative Register of the High-Tech Sector shall be created on the basis of information exchanged and provided by the State Revenue Committee, the State Register of Legal Entities, the Authorized Body in accordance with the procedure established by the legislation of the Republic of Armenia, as well as reports of economic entities.
4. The forms and procedure for submission of reports of economic entities shall be established by the Authorized Body.
5. Depending on the collected Depending on the nature of the indicators, reports are submitted by economic entities on a monthly, quarterly or semi-annual basis, which is determined by the authorized body.
Article 11. Provision of information
1. The body carrying out state registration (accounting) of legal entities and individual entrepreneurs shall submit to the authorized body information on the state registration of economic entities operating in the field of high technologies every quarter, in accordance with the procedure established by the Government of the Republic of Armenia.
2. The scope of information provided to the authorized body by the State Revenue Committee and the relations related to the provision shall be regulated by a joint legal act of the head of the authorized body and the head of the State Revenue Committee.
Article 12. Liability for Violation of the Provisions of this Law
1. Violation of the requirements of this Law shall entail liability provided for by law.
2. Failure to submit reports by high-tech organizations or individual entrepreneurs in accordance with this Law shall entail administrative liability in the amounts established by the Code of the Republic of Armenia on Administrative Offenses.
Article 13. Monitoring of state support for the high-tech sector
1. In order to monitor the development of the high-tech sector and compliance with the requirements of persons receiving state support, the authorized body shall carry out monitoring.
2. Monitoring shall be carried out by collecting data on economic entities, verifying, comparing, evaluating, and analyzing data.
3. The authorized body shall establish the procedure for implementing monitoring.
Article 14. Final and transitional provisions
1. This Law shall enter into force on January 1, 2025 and shall remain in force until January 1, 2032.
2. The sub-legislative normative legal acts specified in this Law shall be adopted within three months after the entry into force of this Law.
3. The platform specified in Article 6 of this Law shall be launched no later than July 1, 2025. Prior to the launch of the platform, applications from economic entities shall be accepted and processed in accordance with the procedure approved by the head of the authorized body.
2. On the procedure and amount for establishing the changes in the salary rates of certified or
ranked pedagogical staff of vocational educational institutions and the determination of
additional payments.
Name of the legislative act:
On the procedure and amount for establishing changes in the salary rates of certified or ranked pedagogical staff of vocational educational institutions and the determination of additional payments, No. 1912-N.
Change Status:
The decision entered into force on 05.12.2024.
What the changes are about:
Government Resolution No. 1912-N specifically relates to the procedure and amount of the change in the rate and determination of the additional payment for certified pedagogical employees of professional educational institutions and the procedure and amount of the additional payment for pedagogical employees of professional educational institutions who have received a classification.
GIn accordance with Article 18, Part 1, Clause 7 of the Law of the Republic of Armenia “On Vocational Education and Training”, the Government of the Republic of Armenia hereby decides:
1. To approve:
1) the procedure and amount for changing the rate and determining the additional payment for certified pedagogical employees of vocational educational institutions, in accordance with Appendix N 1.
2) the procedure and amount for determining the additional payment for pedagogical employees who have received a category of vocational educational institutions, in accordance with Appendix N 2.
2. Sub-clause 1 of clause 1 of this decision shall enter into force upon its adoption, and sub-clause 2 and the provision of the additional payment for the category of a pedagogical employee conducting a subject program corresponding to the third level of secondary education, from December 1, 2025.
Appendix N 1
to the Resolution of the Government of the Republic of Armenia
dated December 5, 2024 N 1912-N.
On the procedure and amount for establishing the changes in the salary rates of certified or
ranked pedagogical staff of vocational educational institutions and the determination of
additional payments.
I. GENERAL PROVISIONS
.
1. This regulation defines the legal relations regarding the change of salary rates and the determination of additional payments for certified pedagogical staff of state educational institutions implementing vocational and secondary vocational education programs.
2. According to point 40 of the regulation approved by the Minister of Education, Science, Culture, and Sport of the Republic of Armenia on February 7, 2024, order No. 07-N (hereinafter referred to as the "certification procedure"), the salary rate of pedagogical staff demonstrating results as defined by subpoints 1, 2, and 3 of
point 40 is changed to 200,000 AMD per workload unit, with the corresponding additional payment applied.
The salary rate of pedagogical staff demonstrating results defined by subpoint 4 of point 40 is changed to 200,000 AMD per workload unit, with no additional payment.
3. Additional payments are granted to pedagogical staff who have passed certification in cases defined by subpoints 1-3 of point 40 of the certification procedure for a period of 5 years, according to the following logic:
1) In case of demonstrating 90-100% results in certification, a 50% additional payment is granted based on the teacher's salary.
2) In case of demonstrating 80-89% results in certification, a 40% additional payment is granted based on the teacher's salary.
3) In case of demonstrating 70-79% results in certification, a 30% additional payment is granted based on the teacher's salary.
4) The additional payment is calculated only on the actual teaching hours corresponding to the pedagogical salary in all institutions where the certified direction is being taught.
4. In case of transferring a pedagogical staff member from one institution to another, the additional payment is preserved.
5. In case of the results defined by subpoints 1-4 of point 40 of the certification procedure, the pedagogical staff member may, at their initiative and at their own expense, apply for and participate in the next retraining course and certification process organized by the Ministry in their field, organized by a guaranteed organization.
1) In case of demonstrating the same results as the previous outcome, the amount of the additional payment remains the same, and a new 5-year term is set.
2) In case of demonstrating a higher result compared to the outcome defined by subpoints 2-3 of point 40, the pedagogical staff member receives the additional payment based on the most recent result, with a new 5-year term for receiving the additional payment.
3) In case of demonstrating a lower result compared to the previous outcome, the additional payment remains the same as previously determined, with the same amount and term.
6. A pedagogical staff member who has passed certification in a certain field and works part-time in the same field receives additional payments from both the main and part-time workplaces, with the total workload not exceeding the maximum working hours established by the labor code. At each workplace, the additional payment is calculated based on the sum of the hours of the modules related to the field of direction, approved by the Minister, and the pedagogical salary calculated based on these hours.
7. The additional payments defined in point 3 of this regulation include the taxes paid from the salary, as well as any other mandatory social or legally established payments.
Appendix N 2
to the Resolution of the Government of the Republic of Armenia
dated December 5, 2024 N 1912-N
PROCEDURE FOR DETERMINING THE SURCHARGE AND AMOUNT OF CHILD CARE
WORKERS WHO HAVE RECEIVED A SYSTEM OF PROFESSIONAL EDUCATIONAL
INSTITUTIONS
1. This regulation defines the procedure for determining the additional payment for pedagogical staff (lecturers, masters, and instructors) who have received a rank in state educational institutions implementing vocational and secondary vocational education programs.
2. In accordance with the procedure established by the authorized body of state education management, additional payments are granted to pedagogical staff who have received a rank, for a period of three years, from the funds allocated to the educational institution, as follows:
1) For third-degree rank, an additional payment of 50% of the pedagogical salary.
2) For second-degree rank, an additional payment of 30% of the pedagogical salary.
3) For first-degree rank, an additional payment of 20% of the pedagogical salary.
3. The additional payment for a pedagogical staff member who has received a qualification rank through certification is determined each month, along with the salary.
4. In case of teaching part-time in another state educational institution implementing vocational or secondary vocational education programs, the pedagogical staff member with a rank receives the additional payment also at that institution.
5. Pedagogical staff working in public and private vocational education institutions may participate in the rank granting process in accordance with the procedure established by the authorized body, at their own or other financial means.