News - Armenia plans to double the turnover threshold for microbusinesses by 2027.

YEREVAN, June 18. In a significant policy announcement, Armenian Prime Minister Nikol Pashinyan has declared a strategic plan by the Armenian government to elevate the annual turnover threshold for microbusinesses from the current 24 million drams to 50 million drams, effective from January 1, 2027. This move aims to stimulate economic growth and provide greater operational leeway for small enterprises. Concurrent with this initiative, the government plans to enforce stricter regulations regarding the issuance of checks by control and cash register machines. According to Pashinyan, businesses operating under the microbusiness regime or turnover tax framework that fail to provide check receipts multiple times (three recorded incidences within a year) could face a five-year prohibition from functioning under these favorable business conditions. The government foresees that non-compliant enterprises will be transitioned to the general taxation system, inclusive of VAT payment obligations. Pashinyan acknowledged the potential challenges for some businesses in maintaining operations under these new rules but emphasized the importance of compliance in fiscal accountability. Further expanding on the taxation reforms, Pashinyan highlighted the necessity for broader implementation of excise stamps nationwide. By January 1, 2027, the application process of excise stamps is expected to be broadened to cover all applicable items. This move is intended to enhance regulatory efforts and ensure comprehensive fiscal oversight. According to the Armenian Ministry of Finance's draft project, the adjustments related to excise tax, projected to commence by the same date, might impact products such as cigarettes, tobacco substitutes, alcoholic beverages, gasoline, diesel fuel, and compressed gas. This initiative underscores the imperative of indexation of excise rates consistent with inflation metrics to maintain economic equilibrium and improve state fiscal responsibilities.