Law of the Republic of Armenia about property tax

LAW OF REPUBLIC OF ARMENIA ABOUT PROPERTY TAX CHAPTER 1, WHAT IS SUBJECTED TO THE TAX AND ITS TAX PAYERS Article 1. Property tax payers are those who have property rights as established by the law "About Property in the Republic of Armenia 11 , within the territory of the Republic of Armenia, who possess property (subJect to taxation) as determined by the present law. Article 2. The following are subjected to taxaticn: al Material u:Uje(..;L::; Lt::'::jl:JLt!Lt!U w.Lth va.lucJ.tion state::d in the balance reports of any organizational/legal enterpri.ses (f::::-om now on 11 enterprises 11 ) a.s established by the law ''A.bout the Activity of Enterprises and Owner' s 11 of the Republic of Armenia; bl Physical persons' dwelling-houses, apartments, country houses, garages and other structures, dwellings and build.l:ngs (from now on 11 buildings 11 ), air and water rnoc.orized modes of t.ransporca.Llon ([Lum uuw UH "1t1urJe~ u.C transportation") if their total value exceeds 850 times the minimal monthly salary established by legislation of the Republic of Armenia. c) That property, being a material object of physical pF>rRrrnp;, whic-h h?!~ h~l";n allotted (rent/lease) to an ente~prise for utilization or disposition. The property valuation order is established by the Government. or the Republic of Armenia. CHAPTER 2. RATES OF PAYMENT OF PROPERTY TAXATION ArticJ.e 3. The Following Annual Rates of Payment. of Property Taxation are Established: a) 0.2-0.8 percent of the average annual value of property subject to taxation. The concrete rates of tax payment are established by the Government of the Republic of l\.rmcni::'.l in conformance with the Permanent Commission on Financial-Credit and Budget Issues of the Supreme Council of the Republic of Armenia.b) for physical persons: O. 2 percent of the amount exceeding the ncm-t.ax:ed part (if the valuation cost of structures; for each horse~power of air transportation modes, 3 percent of the monthly minimal salary/wages established in the Republic or 1. 08% for each kilowo.tt of powori for each horse·-power of a water transportation mode, 1. 5 percent of the monthly rninirnal salary/wages established lrt the Republic or 2. 04 percent for each kilowatt of power; in case of using the property of physical persons by the enterprises, the property tax is calculated by the rate of pay established for the enterprises. CilArTEn 3. CALCUL~TION ORDER OF VROPERTY TAX llJD ITS OATES OF PAYMENT Article 4. The property tax of enterprises is calculated on the tax payer side, on a progressive basis, paid into the budget within five days from the day established for presentation of quarterly balance sheets. The property tax from phy:::d.cal pcroono ic co.lculated by the taxing bodies and a notice (:':or payment) is delivered to the tax payer by the l~~ of August of the present year. The amount of tax is paid to the budget in equal parts, by the 1s~n of September and 1 th of November.. 2 for r:.nose pny.sica1. persons wnv ne:tvc an exempcion rigni:., c1~r;:: appropriate documents must be presented to the taxing bodies. For a building being the property of several physical persons, the tax is paid by each owner according to his/her share in t...l1ctL building, and for the tro.noportcttiort mode, the to.x i:J paid by that person whose name is registered to the transportation mode, For newly constructed buildings, as well as newly obtained transportation modes, tax is paid starting from the year followinq their constructior. or acquisition, For inherited buildings (construction), tax is exacted from t:1e heir, from the moment of inheritance. In l.::ase of. building:!! and tranaportution modc:s being dc:::itroycd (.Yr made completely non-functional, tax exaction is terminated started from that month when they have been destroyed or rendered completely non-functional. In case of buildings and transportation modes beir-g transferred durinq a yea:r, tax is paid by the former owner from the 1:.:, of January to the beginning of that month when he/she lost the right regarding the property, and by the new uwue.I. /;JLctL Llu::i: [Lulll LlidL month when he/.she obtained a property right regarding the property. The information necessary for property tax calculation is presented to the taxation bodies by the correspondi~g enterprises and organizations (technical inventory bureau, regional economic bodies, insurance bodies, bodies carryinq out the registration of transportation modes, etc.) according to the regulations established by the law 11 About Taxes and Dut.ies of the Rel)ul.illt..: ur.: ALmt!Hlct" uf Lhio Re:public of Armenia (Article 20). CHAPTER 4. PROPERTY TAX PRIVILEGES Article 5. The following are exempt from property tax: 3 1.n.sc-1.c.uc.10ns a.na c)rgan1.za.c1.on1;;, supporc.r;;:o oy cne .::,cace budg,;i.t:.; enterprises carrying out exclusively agricultural production, cultivation and preservati(;m; fish breeding, tishing and processing; specialized prosthetic orthopedic enterprises; newly created enterprises during a period of one year counted after their registration, except for those enterprises with the privilege established by the 22 rtd Article of the law 11 About. :.::ncomo Tax" is: not. enlai-god; property used for creating insurance reserv~s in the enterprises of a seasonal nature, as well as, property used f:or creating reserves according to the dec1s1.ons at corresponding bodies of state domain and governance; research institutions of the Academy of Sciences of the Republic of Armenia {RA), Health Ministry of RA, Ministry of Agriculture of RA, Ministry of "Enlightenment" of RA, Research institutions of St:.ate ;;.cior.r:::ific 1.::ont.er.,; 1 ont.erp.i:·i.;os and organizations, as well as, of ministries and departments confirmed by the list of RA. Government; property used exclusively tor education and culture, science and sport; property of State apartments and communal residences (except for hotels) in urban areas and the associated public services provided by the Government o: the Republic of Armenia; that propcrt:.y of oocial, including ben111volQnt, rt1ligious. organizations, other non-prof it organizations I enterprises provided by the list confirmed by the established order and presented by the Government of the Republic of A:t:menia, which is .used exclustvely for carry:Lng out their charter activity. The value of the property of enterprises is rE!duced for taxation purposes: by the value of the objects reflected in the balance-sheet of the p::1yer I having apartmGnt-communal and social-cultural importance; oy cne va.Lue v i; Ctk otJJ,::tci::;..s u.;;,,:;u .r.or en,;;; p1.1.rpose or: environmental protection and fire oo.foty 1 by the value of the property being used for agricultural production, cultivation and preservation, fish breeding, fishing and fish procBsSing; by the value of the buildings and land zones being used for the purpose of providing the operation with a means cf commun::.cation (including transpot:tation r,Jads) lines of communicatiort and power; by L:md v<'llu~. Tl:e following physical persons are exempt from the payment cf property tax: disabled person of first and second classificationsi crippled people or the First and Second World War and those disabled people who have become crippled in defending the Republic of Armenia, the former USSR or because of their wound, disability or illness obtained during the service in the c.rmy or on the front1 disabled f<.>rrner guerrillas I as well as the other crippled people who by their pension provision are cnade equal to the above-mentioned status of military men, or their family members living together with them; soldiez:s being in real service in the army, officers of the national '3.rmy and their family members, '1:'he following individuals, as they relate to buildings are exempt from th~ propct'ty tnx no well; those owners of structures, each family member (living together with thf2rt1) who disposes a structure, the value of which does not exceed 300 times of the rate of a minimal salary (wages) established by legislation of the Republic of Armenia; pensioner owners of structures (houses); th(.)se owners of structures, who are the family members of pen~ioner~, if they live together with th~ pensioner, und th~ family has no other income except for the pension, educational received from rentinq build:..nqs (houses) : participants of military act.ions taken place in the First and Second World Wars, J.n the Republic of Afghanistan and Socialist Labor, persons rewarded with Medals of Three Degrees of Glory and their family members at the rate of 50 percent of the amount of the calculated tax. CHAPTER 5. CONCLUDING PRINCIPLES Artir.:le 6. duties, carrying out control upon tax payment, returnir.g a.mounts of tax paid to the budget by mistake, setting apart additional privileges regarding tax, appealing the actions cf state taxation inspection act:ing personalities, providing use of international contracts, as well as, the issue of instructions regarding the implementation of the present law, are regulated according to the order established by RA Law "About: Ti:lxes dild Dulle;:; u.( Lllt.! R~J: . .ll.<l.Jl.Lt.: u.C AJ:.I\L!.:!Uict". ENGLISH TRANSLATION BY , rcMA (USAID Contractor) F<P.'11 :R.qt:atP. Inv~stment Regulation Section Gov. Appa~atus Dept. of the Econotny RF>p11b·1 i r. of ArmP.nia Government House, Room 77 Republic Square, Yerevan Armenia, 375010 Local Tel., (8852) 52 56-93 Intern. (Tel/Fax) 011 7-8852-151-350 Mailing Address: Steven J. Anlian. ICMA Advisor, ''C" USAID/Yerevan Department of State Washington, DC 20521 7020 ICM.A printing date: 07/28/93 6