Starting from 1 January 2022, income tax should be calculated at a 21% flat rate. There are no legal tax benefits in the Republic of Armenia relating to cultural patronage. The VAT for cultural services and goods is 20%. There is not yet any privilege to free cultural workers or facilities from income taxes or from any other taxes, if they are not registered as micro-entrepreneurs who pay smaller amounts of social payments (social security and military tax). Although there is no law fixed in Armenia, creative workers do not pay value added taxes on the sales of their art work. There are no special privileges defined by the Laws on Income and Profit to benefit cultural institutions or individuals. At the same time, there is a commission attached to the government which allows some benevolent programmes, once recognised, to be exempt from paying taxes. A number of programmes are carried out by donors in Armenia in the sphere of arts and culture (e.g. “Armenia” All-Armenian Foundation, Open Society Institute Assistance Foundation, Gafesjian Foundation, Izmirlian Foundation). Despite the fact that a number of cultural undertakings have been realised under private patronage, there are no tax laws to stimulate these kinds of activities by freeing donors from paying taxes or by applying a reduction system.
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