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TAX CODE OF THE REPUBLIC OF ARMENIA

of November 1, 2016 No. ZR-165

(as amended on 17-03-2021)

Accepted by National Assembly of the Republic of Armenia on October 4, 2016

Part 1. General part

Section 1. Concepts and system of taxes

Chapter 1. General provisions
Article 1. Subject of regulation of the Tax code

1. The tax code (further – the Code) regulates connected with the taxes applied in the Republic of Armenia (further – taxes) and the charges provided by the Code (further – charges) the relations (further – the tax relations), establishes the principles of the taxation system in the Republic of Armenia, concepts, types of tax and charges, framework of taxpayers, the tax rates, procedure and terms of calculation, payment, and in the cases established by the Code, penalties of the tax liabilities, and also tax benefits.

2. Framework of taxpayers, the tax rates, procedure and terms of calculation, tax payment, and also tax benefits in charges are established by the Code or the laws of the Republic of Armenia.

3. The tax relations are the relations connected taking into account, servicing of taxpayers, establishment, calculation, tax payment and charges, by accounting of the tax liabilities, and in the cases established by the Code, with collection, the tax return and payments, establishment of tax benefits, fixing of powers and obligations of taxpayers, tax and authorized bodies, implementation of tax control, application of measures of responsibility for violation of provisions of the Code and the laws of the Republic of Armenia on payments, ensuring accomplishment of the tax liabilities, and also permission of tax disputes.

4. Types, framework of payers, rates, procedure and terms of calculation and payment of customs fees, and also privileges are established by the customs legislation of the Republic of Armenia if the Code does not establish other.

Article 2. Regulation of the tax relations

1. The tax relations in the Republic of Armenia are governed by the Constitution of the Republic of Armenia, the ratified international treaties of the Republic of Armenia, the Code, the laws of the Republic of Armenia on payments, subordinate regulatory legal acts adopted on their basis and for the purpose of their realization, and also specified in Items 1-6 of part 3 of this Article by legal acts (further – the legal acts governing the tax relations).

2. The tax relations can be governed by the laws of the Republic of Armenia on charges and subordinate regulatory legal acts established by part of 1 this Article only in the cases and framework established by the Code.

3. The tax relations cannot be governed by other legal acts differing from 1 this Article of legal acts established by part, except for:

1) Code of Administrative Offences of the Republic of Armenia,

2) the Law of the Republic of Armenia "About bases of administration and administrative production",

3) Criminal Code of the Republic of Armenia and Code of penal procedure of the Republic of Armenia,

4) the Law of the Republic of Armenia "About bankruptcy",

5) the Laws of the Republic of Armenia "About Tax Service" and "About operational search activities",

6) the Law of the Republic of Armenia "About inspection bodies".

4. If contradictions, ambiguities or misinterpretations contain the governing tax relations of provision of the legal acts having equal legal force, they are interpreted and applied for benefit of the taxpayer.

5. The laws of the Republic of Armenia or provision of the laws of the Republic of Armenia providing establishment by the Code of new type of tax or payment increase in the rate of payment established by the Code or the tax rate can become effective since the beginning of tax year, subsequent after the tax year including acceptance date of these laws, but not earlier than since the beginning of the seventh month including day of official publication of these laws.

6. The laws of the Republic of Armenia or provision of the laws of the Republic of Armenia providing establishment of tax benefits can become effective since the beginning of tax year, subsequent after the tax year including acceptance date of these laws if these laws do not establish other term of entry into force.

Article 3. Principles of the taxation system of the Republic of Armenia

1. The Republic of Armenia has the single system of the taxation based on the following principles:

1) clarity and clearness - the legal acts governing the tax relations shall be clear and clear for taxpayers and tax authority and not contain contradictions and uncertainty;

2) consolidation - the legal acts governing the tax relations shall be most consolidated, and it is necessary to avoid regulation of the tax relations separate legal acts;

3) equality - the legal acts governing the tax relations shall be applied equally to all taxpayers;

4) lack of discrimination - application of taxes and fees and tax administration shall not have discrimination character, depending on the social, political, religious, ethnic, ideological, and also other factors established by the Constitution of the Republic of Armenia;

5) all-obligation - all taxpayers shall calculate and pay taxes and fees in the cases, procedure and the size established by the Code and the laws of the Republic of Armenia on payments;

6) transparency and accountability - tax administration shall be transparent, public;

7) the self-declaration and tax discipline - taxpayers shall calculate and pay independently taxes, charges according to the procedure, established by the Code and the laws of the Republic of Armenia on charges;

8) the balance of tax administration - any taxpayer cannot:

and. be obliged to pay taxes or charges which are not established by the Code or the laws of the Republic of Armenia on charges,

. be the taxes or charges established by the Code or the laws of the Republic of Armenia on charges obliged to pay with violation of requirements of the Code or the laws of the Republic of Armenia on charges,

are the taxes or charges established by the Code or the laws of the Republic of Armenia on charges obliged to pay century until the deadlines established for their payment by the Code or the laws of the Republic of Armenia on charges expired;

9) inevitability of responsibility - taxpayers will inevitably bear responsibility for violation of requirements of the Code or the laws of the Republic of Armenia on charges;

10) harmony of responsibility - the responsibility for violation of requirements of the Code or the laws of the Republic of Armenia on charges shall be equivalent weights of offense;

11) pluralism and publicity - changes and (or) additions made to the Code and the laws of the Republic of Armenia on charges are made in advance discussing them with representatives of professional public organizations, representatives of business environment and other interested state bodies;

12) the present – the taxation system of the taxation shall be based on modern systems and approaches of management (including electronic);

13) competitiveness - the taxation system shall be competitive from the point of view of investment attraction and forming of favorable business environment;

14) efficiency - the taxation system shall give the chance that accounting for taxpayers, and for tax authority – public control could be exercised when using the minimum resources.

Chapter 2. Concepts
Article 4. The basic concepts used in the Code

1. In sense of application of the legal acts governing the tax relations, the concepts provided below make the following sense and value:

1) tax - the obligatory and non-paid amount paid to the government and (or) local authority budget of the Republic of Armenia for the purpose of satisfaction of the state and (or) social needs, paid by taxpayers according to the procedure, the size and terms determined by the Code;

2) charges - the state or local payment provided by the Code;

3) penalty fee – the responsibility measure established by the Code for failure to pay or untimely tax payment and payments in the terms established by the Code and the laws of the Republic of Armenia on charges;

4) penalty - the responsibility measure established for non-execution or execution with violations of the requirements established by the Code or the laws of the Republic of Armenia on charges;

5) debt - the tax amount or charges which is not paid or not extinguished in time, established by the Code and the laws of the Republic of Armenia on charges;

6) advance payment of tax or charges - the tax discharge or collection calculated and made according to the procedure, established by the Code and the laws of the Republic of Armenia on charges for certain period of time until the end of the accounting period;

7) the debit amount - the debit amount reflected in single calculation of the value added tax and excise tax, which resulted from deduction (reduction) performed in provided by the Code procedure;

8) the single account - the deposit sub-account of the public extrabudgetary funds performed by Treasury for the purpose of repayment of the tax liabilities of taxpayers in the cases established by the Code;

9) treasury - the Central Treasury of the state body performing the state regulation in the financial sphere authorized by the Government;

10) the amount on the single account - the amount by which in the procedure established by the Code the tax liabilities of the taxpayer which could arise can be extinguished:

and. from the payment made into the single account

. from representation of tax calculations (including specified),

century from deduction of obligation as a result of the decision assumed by the commission on execution or protest of the court verdict, or increase in the amounts assessed by zero tax rate on value added or which are subject to transfer into the single account on part of the transactions established by Items 1-3 of part 2 of article 89 of the Code;

from reduction of obligations by results of check or monitoring or from increase in the amounts which are subject to transfer into the single account on part of the transactions assessed on zero tax rate on value added or established by Items 1-2 of part 2 of article 89 of the Code;

from the amounts which are subject to transfer into the single account, fixed (proved) by results of check or monitoring as regards the transactions assessed on zero tax rate on value added;

e. from the amounts which are subject to transfer into the single account, fixed (proved) by results of check or monitoring as regards the transactions provided by Items 1-3 of part 2 of article 89 of the Code;

. from VAT amounts or the excise tax or the debit amounts which are subject to offsetting from the budget, formed on the calculations of the VAT or the excise tax (including - specified) provided for the accounting period which came to the end till January 1, 2018;

11) the taxpayer - the organization or physical person (including the individual entrepreneur, the notary) which in the cases established by the Code or the laws on charges has or can have the obligation on tax payment or payments;

12) tax authority - Committee on state revenues;

13) tax administration - the set of the actions of authorized body performed based on the Code and other legal acts, aimed at providing general and correct application of the legal acts governing the tax relations;

14) authorized body – the state body or local self-government exercising administration or control in cases and within, the established Code or the laws of the Republic of Armenia on charges;

15) assets - any property, property rights and the personal non-property rights belonging to the taxpayer by the property right;

16) intangible asset – the asset which does not have material basis, except for money, financial assets and goodwill;

17) financial asset - the financial asset established by financial accounting relevant international standards, except for money;

18) cash – monetary unit of the Republic of Armenia or currency in the form of banknotes or coins;

19) fixed assets - the fixed assets and investment property established by financial accounting relevant international standards;

20) initial cost of asset – the total amount of the price of acquisition of asset (in case of non-paid obtaining – the price of the received asset, and in case of investment of the authorized (equity) capital – the price determined by agreement of the parties which is subject to assessment by the independent appraiser in the cases and procedure provided by the law), construction expenses or creation or development (including the taxes and payments which are not compensated and not read (not subtracted) according to the procedure, established by the Code), expenses on movement, localization and (or) other expenses connected directly with acquisition, in terms of money. In case of transition of subject of leasing (versions) to the taxpayer by the property right the original cost calculated for this subject of leasing according to Item 70 of this part is considered original cost of asset;

21) the obligation - the available debt of the taxpayer;

22) original cost of the obligation - the amount of the assets necessary for execution (repayment) of the obligation at the time of its origin, in terms of money;

23) the income - entrepreneurial, personal and (or) passive income;

24) entrepreneurial income – the increase in assets or reduction of obligations relating to the activities performed by the organization, the individual entrepreneur or the notary that separately leads to increase in equity of the organization or the net assets of the individual entrepreneur or notary except for constituting, which are not considered as the income, stipulated in Clause 108 Codes and the dividends received by the physical resident persons who are individual entrepreneurs or notaries, which are considered as personal income in sense of application of Item 25 of this part. In sense of this Item, entrepreneurial income also income gained from the business activity performed by the physical person who is not the individual entrepreneur and the notary is considered;

25) personal income – the money or other asset (including in natural form) relating to the activities performed by physical person within employment or civil contracts, or on any other basis (except as specified, established by Items 24 and 26 of this part). In sense of application of this Item, the dividends received by the physical resident person who is considered as the individual entrepreneur or the notary are considered as personal income, regardless of circumstance of receipt of the dividend as the individual entrepreneur or the notary and provisions of Item 26 of this part;

26) passive income – income gained only from activities of other persons by physical person or, according to article 27 of the Code, the organization by the nonresident who does not have the permanent organization registered in the Republic of Armenia by means of contribution of the assets, in particular, dividends, percent, royalty, the rent, increase in value of assets (except as specified, the stipulated in Item 24th this part and dividends received by the physical resident persons who are individual entrepreneurs or notaries, which are considered as personal income in sense of application of Item 25 of this part);

27) gross income – the total amount of the income established by the Code received during the accounting period or subject to obtaining;

28) entrepreneurial expenses - reduction of asset or increase in the obligations relating to organization activity, the individual entrepreneur or the notary that separately leads to reduction of equity of the organization or the net assets of the individual entrepreneur or notary except for constituting, not being expense, stipulated in Clause 112 Codes;

29) equity - difference between assets and liabilities of the organization;

30) asset carrying amount - difference between original cost of asset and the umensheniye made from it for the purpose of the taxation (including the depreciation charges), considering results of the revaluation performed according to the procedure, stipulated in Item 2 parts 1 of article 106 of the Code and capital costs, stipulated in Item 1 parts 3 of article 121 of the Code. In case of determination of asset carrying amount in case of transition of subject of leasing (versions) to the taxpayer by the property right also the deductions made from them for the purpose of the taxation of this subject of leasing, also taking into account capital expenditures, the stipulated in Item 1 parts 3 of article 121 of the Code made by the leasing recipient before transition of subject of leasing to the leasing recipient by the property right are subtracted;

31) book value of the obligation - difference between the original cost of the obligation and assignments made for the purpose of the taxation taking into account results of the revaluation performed according to the procedure, stipulated in Item 2 parts 1 of Article 106;

32) dividends – the income gained or which is subject to obtaining from participation in the authorized or equity, or share capital of the organization (shares, shares, shares) or from joint activities as profit distribution (including intermediate distribution);

33) percent - the income gained or which is subject to obtaining for use of the money provided to the other person by the principle of recoverability (including enlisted on the bank account of the serving bank as the loan, advance payments for acquisition of the payment document), or for early payment of realization value. In percent the penalty, obyazuyemy the law or the transaction for payment detention, including bank interest is not considered;

34) royalty – the income gained or which is subject to obtaining from use of intellectual property and other non-property rights of the taxpayer. The royalty is considered, in particular, income gained from use of products of inventions, patents, copyright: literatures, sciences or arts, inclusive, cinema movies, audio-and videos for television or broadcasting, computer programs, trademarks, the project or model, the scheme, secret formula or process, or industrial, trade or scientific information, or scientific experiment. The concept of royalty is applied in Section 10 of the Code in the sense and value established by part 2 of article 197 of the Code;

35) the rent - the income gained or which is subject to obtaining from use of property of other person. The rent also compensation of the subtenant to the lessee is considered;

36) asset increase in value – according to article 27 of the Code, positive difference in selling price and asset carrying amount of the organization of the nonresident registered in the Republic of Armenia and who does not have permanent organization or physical person of the nonresident registered in the Republic of Armenia and who does not have permanent organization;

37) tax benefits – the exception of general procedure and (or) terms of calculation and payment of the taxes established by the Code established by the Code of payments, penalty fee and (or) penalties as a result of which there is no tax liability or reduction or the amount of the tax liability which is subject to execution is cancelled, or terms by its calculation and (or) execution are postponed;

38) goods - any assets different from financial assets, intangible assets, goodwill if the Code does not provide other. In activities for purchase and sale of foreign currency (exchange of foreign currency), the foreign currency is also considered goods;

39) identical goods – the goods identical in every sense, including physical, chemical properties, quality, popularity (trademark), in case of the real estate – also placement of real estate. At the same time, appearance variations which cannot be decisive factor for preference consumers of one of comparable goods are not decisive condition not to consider these goods as identical;

40) similar goods - goods which without being identical, have similar qualities and components which allow to use them in the same value and to be interchangeable. At the same time, for determination of analogousness of goods, among other factors, their quality, popularity (trademark) and in case of the real estate – also placement of real estate are also considered;

41) delivery of goods - assignment of rights of property on goods from one person to another, by means of performing compensation in any kind (including, compensations in the form of partial compensation, or grants or subsidies) or it is non-paid. In sense of application of this Item, as delivery of goods are considered also:

and. alienation of goods on pipelines and power lines;

. provision of goods by the participant of joint activities, as contribution to joint business if these goods are provided before representation by the accountable participant stipulated in Clause 32 Codes of the announcement,

century assignment of rights on property of goods (pledge subject) by the pledger to the pawnbroker or person specified by the pawnbroker,

transfer by the lessor of subject of leasing to the leasing recipient, the agreement of leasing (versions) provides that after the termination of effective period of this agreement or before its termination the property right regarding leasing can pass to the leasing recipient;

42) movement of goods – movement of the goods moved with the taxpayer between places of its delivery and (or) delivery points or which are handed over or returned under agreements of storage, the guarantee, the agencies, providing performance condition on behalf of principal, or for conversion or returned as a result of conversion of the inventory items accepted for conversion, or acquired in any delivery location or delivery point (including carrier) without transfer of property concerning goods from one person to another,

43) work – action which result has material nature and can be aloof for satisfaction of needs and (or) requirements of other person,

44) services - action which result has no material nature and which the receiver consumes during this action,

45) identical work – the works identical in every sense, including requirements imposed to performing work, quality of work, reputation (trademark) performing work. At the same time, variations from characteristics of works which cannot be the decisive cause for preference of one of the compared works concerning another are not sufficient condition not to consider these works identical,

46) identical services – the services identical in every sense, including requirements imposed to providing services, service quality, reputation (trademark) providing service. At the same time, variations from characteristics of services which cannot be the decisive cause for preference of one of the compared services concerning another are not sufficient condition not to consider these services identical,

47) performance of work - transfer of property on result of work from one person to other person with compensation in any kind (including, with partial compensation or compensation in the form of grants or subsidies) or is non-paid. In sense of application of this Item, performance of work also performance of work by the participant of joint activities for the accountable participant of joint activities, as contribution to joint activities is considered if this work is performed before representation by the accountable participant stipulated in Clause 32 Codes of the announcement,

48) provision of services – implementation of action by one person for benefit of other person, with compensation in any kind (including, with partial compensation or compensation in the form of grants or subsidies) or is non-paid. In sense of application of this Item, provision of services also provision of services by the participant of joint activities to the accountable participant of joint activities, as contribution to joint activities is considered if this service is carried out before representation by the accountable participant stipulated in Clause 32 Codes of the announcement,

49) comparative circumstances of transactions on delivery of goods, to performance of work and (or) provision of services - factors under the influence of which the price of the delivered goods, the performed works and (or) the rendered services usually does not bear changes. In particular, in case of determination of comparable circumstances, seasonality, quantity of the delivered product, amount of the performed work and (or) the rendered service, delivery conditions of goods, performance of work and (or) provision of services (in particular, with delivery, without delivery, prepayment-based, with payment by installments to the supplier by the buyer, available or created in the future, with ensuring accomplishment, without ensuring accomplishment) and the accompanying services (in particular, installation, testing), guarantee maintenance after sale are considered,

50) realization turnover - the entrepreneurial income which is subject to obtaining from delivery of goods, performance of works and (or) provision of services, in terms of money, which does not include tax amount on value added, the excise tax and (or) ecological tax,

51) personal property of physical person - the private, family or household property which is belonging by the property right to physical person, subject to use in the consumer purposes

52) the property of physical person which is subject of business activity – the property of physical person which is not personal property of physical person, except as specified, provided by the Code;

53) realization - transfer from one person to another of the property right to goods and (or) result of performance of work or provision of services with any kind of compensation (including partial);

54) alienation - transfer from one person to another of the property right to goods and (or) result of performance of work or provision of services with any kind of compensation (including partial) or is non-paid,

55) the bestovarny document – the settlement document which is formally conforming stipulated in Clause 55 Codes to requirements, the transaction specified in which (delivery of goods, performance of works and (or) provision of services) between the parties which constituted this document actually it was not executed or executed for 20 and less percent from one or several stipulated in Item 7 and (or) 8 parts 4 of article 55 of the Code of data specified in this document. The settlement document is not considered the bestovarny document if the taxpayer who wrote out it according to the agreement on delivery of goods, performance of works and (or) provision of services, incurs the obligation on accomplishment of the transaction. Bestovarny documents are not the basis for calculation and (or) payment by taxpayers of taxes and (or) payments,

56) the accompanying document - the relevant settlement document, stipulated in Clause 55 Codes confirming delivery or transfer of goods in the cases and procedure established by the Code

57) the place of delivery - the real estate units having or not having addresses, outlet on the place of implementation of trade, the Item of mobile trade, the real estate object consisting of real estate units, the being whole, geographical object in limits and outside settlements (which is and not being to one address, one general territory belonging to the taxpayer on right of possession or use which is not differentiated by the territories belonging to other persons on right of possession or use) from where goods are delivered or transported,

58) delivery point – the vehicle which is used by the taxpayer for delivery or transportation of the goods, and also Item of mobile trade,

59) representation of calculations or other documents electronically - representation of calculations or other documents in tax authority by means of electronic information system by means of electronic technologies (by means of application of the digital signature, electronic login and the password),

60) the digital signature - the means established by the Law of the Republic of Armenia "About the electronic document and the digital signature", identifying the signing person and also protecting the electronic document from counterfeiting and misstatements

61) electronic logins and passwords - the login combination entered in the unique sequence of electronic digital signs, also the password for entrance which allows to enter information system of tax authority, to identify submitting the electronic document, and also provides confidentiality and protection of information about person who entered electronic system from actions of other persons,

62) tax dispute - disagreement arising between the taxpayer and tax authority within the relations connected with implementation of tax control (including checks, monitoring), behind execution of calculation and tax payment and charges, and also other requirements established by the Code and the laws of the Republic of Armenia charges

63) tax secret - any information on the taxpayer, activities of the taxpayer received by tax authority or the tax employee, except for:

and. the data published by the taxpayer or from its consent;

. information on accounting taxpayer number;

century of the data included in the charter of the taxpayer;

of data on violation of requirements of the legal acts governing the tax relations, and the applied responsibility measures;

of information about the taxpayer or the activities of the taxpayer represented to tax or customs authorities of other states based on the international or interdepartmental treaties (agreements) in case of submission to other bodies;

e. information on number of persons employed, declared by the taxpayer during month under report based on employment and civil contracts;

. information on the obligations extinguished by means of the single account and also on repayment of obligations as regards taxes, payments and the state fee, irredeemable by means of the single account;

h. information on system of the taxation of the taxpayer;

and. the data which are subject to publication, stipulated in Clause 308 Codes and not specified in this Item;

64) the documents which are subject to the obligatory notification - the documents provided by the Code and the law, accepted by tax authority as paper method and by means of electronic system within administrative production on collection of the tax liabilities or seizure of property of the taxpayer provided by part 5 of article 398 of the Code (protocols, the arrest warrant, the decision, the notification);

65) acceptance by the document through electronic system - acceptance and approval by electronic method of the documents which are subject to the obligatory notification, using automated control systems, and compliance of the original of these approved documents on external form - the electronic document is ratified by the digital signature of the corresponding official accepting them;

66) the electronic notification of taxpayers - the notification by electronic method of taxpayers about the documents which are subject to the notification which is performed by placement on the personal page of the taxpayer in system of electronic control by submission of reports to tax authority, and in case of impossibility of it or if the taxpayer within 5 working days after placement does not visit the personal page provided by this Item - by placement on the official website of public notifications of the Republic of Armenia what the taxpayer is notified by the e-mail which is available in tax authority on;

67) accounts receivable - the outstanding amount which is subject to payment (to compensation in other form) to the taxpayer other persons (debtors), except for the outstanding amounts which are subject to payment (return) to the taxpayer as regards the tax liabilities in relation to state or to local authority budgets, duties and other obligatory payments;

68) accounts payable - the outstanding amount which is subject to payment (to compensation in other form) the taxpayer to other persons (creditors) (including as regards the salary and other payments equated to it, dividends), except for the outstanding amounts which are subject to payment by the taxpayer as regards the tax liabilities in relation to state or to local authority budgets, duties and other obligatory payments;

69) leasing subject - the leasing subject established by the Civil code of the Republic of Armenia;

70) original cost of subject of leasing - the cost at the leasing recipient reflected in the document on receipt of subject of leasing, the total amount of construction expenses or creation or development (including non-refundable and not contributory (not subtracted) in the procedure for taxes and payments established by the Code), freight charges, placement and (or) other expenses which are directly connected with acquisition, in terms of money;

71) book value of subject of leasing - difference of original cost of subject of leasing at the leasing recipient and the deductions made from it for the purpose of the taxation (including depreciation or depreciation), taking into account capital expenditures, stipulated in Item 1 part 3 of article 121 of the Code.

Article 5. Rules of application of other concepts of the Code

1. Except stipulated in Clause 4 Codes of concepts, in the Code also other concepts which sense and value are interpreted in the appropriate sections or Chapters of the Code relating to these concepts are used.

2. The concepts "taxation object", "object of payment", "tax base", "base of payments", "accounting period" are used in the legal acts governing the tax relations in the sense and value specified in the relevant articles of the Code relating to these concepts.

3. The concepts used in the Code for the purpose of regulation of the relations connected with calculation and tax payment and charges in transportation of goods through customs border of the Eurasian Economic Union (further - EEC) which are not established by the Code, are applied in the meanings established by the Customs code of EEC, either the laws or other legal acts of the Republic of Armenia governing the customs relations.

4. The concepts used in the legal acts regulating the sphere of financial accounting are used in the Code in the sense and value applied in these legal acts if the Code does not provide other.

5. The concepts used in legal acts in civil, administrative, criminal, labor, family, land spheres, the sphere of use of natural resources and environmental protections, licensing, the notification, permission and other special spheres are used in the Code in the sense and value applied in legal acts of the respective sphere if the Code does not provide other.

6. If applied in the Code the interpretation of the commodity nomenclature of external economic activity established customs by the legislation of EEC (further – the Commodity Nomenclature of Foreign Economic Activity), differs from the interpretation established by the Code as regards corresponding to the Commodity Nomenclature of Foreign Economic Activity, then the interpretation established by the Code is applied.

Chapter 3. System of taxes and payments
Article 6. Types of tax

1. The Republic of Armenia is applied:

1) the National taxes which types are:

and. the value added tax (further also – the VAT);

. excise tax,

century income tax,

income tax,

ecological tax,

e. road tax,

. receipts tax,

h. ceased to be valid.

2) the local taxes which types are:

and. real estate tax,

. tax on vehicles.

2. In the Republic of Armenia such taxes which are not provided by Items 1 and 2 of part of 1 this Article cannot be established.

Article 7. Payment types

1. The Republic of Armenia is applied:

1) the state fees which types are:

and. state fee,

. payment for environmental management,

century social payment,

obligatory payment for provision (prolongation of effective period) of permission to use of radio frequencies and obligatory payment for use of radio frequencies,

obligatory payment for regulation of public services,

e. retirement benefit;

2) local payments, types which are:

and. local charges,

. local payments.

Article 8. Systems of the taxation

1. In the Republic of Armenia the general and special taxation systems are effective.

2. Within general system of the taxation of the organization, individual entrepreneurs and notaries are assessed with taxes, in particular, the VAT and (or) the income tax.

3. From the special taxation systems:

1) within system of the receipts tax of the organization are assessed with the receipts tax replacing the VAT and (or) the income tax, and individual entrepreneurs and notaries – the income tax and the receipts tax replacing the VAT;

2) ceased to be valid;

3) within system of microentrepreneurship of the organization and physical persons in cases, Chapter 56 of the Code, are exempted, in particular, from VAT liability and (or) the income tax, and also the receipts tax.

4. For the organizations, the individual entrepreneurs and notaries acting in special systems of the taxation as regards the relations regulated by the Section of the Code relating to special systems of the taxation, other taxes and fees established by the Code (which the receipts tax does not replace, or subjects of microentrepreneurship of which are not exempted), are estimated and paid according to the procedure, established by the Sections relating to the corresponding tax or charges if Chapters of the Code relating to special systems of the taxation do not provide features in calculation and payment of these taxes and payments.

Article 9. General terms for establishment of taxes and fees

1. Taxes and fees are considered established only if the following elements, except as specified, of stipulated in Item 3 these Articles are established:

1) framework of taxpayers;

2) taxation object;

3) tax base;

4) tax rate;

5) tax procedure of payments;

6) procedure and payment due dates of tax.

2. The elements necessary for establishment of tax and payment on environmental management, are established by the Code.

3. Provisions of part of 1 this Article do not extend to other payments different from payment on environmental management, the relations connected with which are regulated by the laws of the Republic of Armenia on payments.

4. The regulation establishments specified regarding 1 this Article, relating to elements established by articles 10-12, 14 and 18 of the Code are applied also in payment on environmental management.

5. The regulations established are applied by Chapters 6-7, 67-72 and 76-80 of the Code which do not belong to the elements of establishment of tax established regarding 1 this Article to taxes in the charges provided by the Code.

Article 10. Taxation object

1. The taxation object is any transaction, the income, property, type of activity (including action or function) or any other object which availability, or availability of the right to which or execution of which, according to the Code, leads the taxpayer to the obligation by calculation or the tax discharge.

2. For each tax the separate taxation object is established.

3. The same taxation object during the accounting period is assessed with tax of one type at the same taxpayer only once.

Article 11. Taxation basis

1. The taxation basis is price, physical or other characteristic of the taxation object.

2. For each tax the separate taxation basis and procedure for its calculation are established.

Article 12. Tax rate

1. The tax rate is the that price (percentage) and (or) constant size which is applied to taxation basis to determination of the amount of tax.

2. For each type of tax it is established (are established) separate rate (rates).

Article 13. Accounting period

1. The accounting period is the period for which taxes and (or) payments for environmental management are estimated and paid, tax calculations (except for tax declarations on import, tax payment on commodity importation and announcements of payment of indirect taxes are represented (or releases from indirect taxes, payments of indirect taxes otherwise) and tax declarations on export), other obligations established by the Code are fulfilled.

2. The accounting period belongs only to tax calculations, and the period - as to other tax deeds, and payment deadlines.

3. The accounting period is month under report or reporting quarter, either reporting half-year, or accounting year.

4. Month under report is the period from 1 number of any month to the last day of this month inclusive. The reporting quarter is the period from 1 date of January, April, July or October of any year, about, inclusive, last day respectively, March, June, September or December. Reporting half-year is the period from 1 date of January or July about, respectively, last day of June or December of this year. Accounting year or tax year - the period from January 1 of any year to December 31 of this year. In sense of application of provisions of this part, the features established by parts 5 and 6 of this Article are considered.

5. In case of state registration of the organization (for separate divisions of the organization and organizations - the state accounting) or state registration of a person as an individual entrepreneur or appointment as the notary, the beginning of the accounting period day of state registration of the organization (for separate divisions of the organization and organizations - the state accounting) or state registration of a person as an individual entrepreneur or appointment as the notary is considered.

6. In case of liquidation of the organization (removal from the state accounting of separate divisions of the organization or organizations) or removal from the state accounting of the individual entrepreneur or dismissal of the notary, day of liquidation of the organization (removal from the state accounting of separate divisions of the organization and organizations) or day of dismissal of the notary is considered the end of the accounting period.

Article 14. Procedure of payments of taxes

1. Tax calculation is made for each accounting period according to the procedure, established by the Sections or Chapters of the Code relating to separate types of tax, the cases except for established by the Code.

2. Taxpayers make tax calculation independently, the cases except for established by parts 3-6 of this Article.

3. In the cases established by the Code tax calculation is made by tax agents.

4. Calculation of tax in the joint activities performed according to the procedure, established by Chapter 5 of the Code, except for the taxes established by part 1 of article 32 of the Code is made by the participant who undertook the obligation by calculation and tax payment and charges according to cooperation agreement (further – the advance holder of joint activities), except as specified, established by part 6 of this Article.

5. In the cases established by Sections 11 and 12 of the Code, calculation of tax is made by the relevant registering bodies.

6. In the cases established by Section 17 of the Code and in the cases established by Sections 6 and 10 of the Code, calculation of advance payment is made (or specifies calculation of tax) by tax authority.

7. Calculation of tax is made in Armenian drams.

Article 15. Methods and methods of accounting of calculation of tax or payment for environmental management

1. Calculation of tax or payment for environmental management is made by accrual method if the Code does not provide that calculation of tax or payment for environmental management is made by method of cash accounting. In sense of application of the Code:

1) the accrual method of calculation means that:

and. the taxpayer records the income and expenses, proceeding from the moment of acquisition of right to receipt by it of this income or recognition of these expenses by it, regardless of the moment of receipt of compensation or performing payment of payments;

. the taxpayer makes accounting of the amounts of taxes, payments for environmental management and the amounts, deductible (reduced) from the taxes, proceeding from the moment of emergence of the tax liability or emergence (reduced) on taxes of the deductible amounts, regardless of receipt of compensation for the transactions made by it, or payment to suppliers, either tax or customs authorities of payments as regards the deductible (reduced) amounts,

2) the cash method of accounting means that:

and. the taxpayer records the income and expenses, proceeding from the moment of receipt of compensation or performing payments, regardless of acquisition of right to data acquisition of the income or recognition of these expenses by it,

. the taxpayer makes accounting of the amounts reduced from taxes, payments for environmental management and the amounts, deductible (reduced) from taxes, proceeding from the moment of receipt of compensation for the transactions made by it, or payment to suppliers, either tax or customs authorities of payments as regards the deductible (reduced) amounts, regardless of emergence of the tax liability or emergence (reduced) from taxes of the deductible amounts.

2. In the cases established by this part calculation of tax or payments for environmental management is made by method of separate accounting. The method of separate accounting means that:

1) ceased to be valid

2) ceased to be valid

3) if the taxpayer at the same time performs types of activity or transactions, non-taxable and taxable, then the taxpayer shall record the taxation objects, tax bases, the sums of the taxes determined by the Code of umensheniye, the deductible (reduced) amounts which arose as regards types of activity and transactions, the non-taxable and taxable taxation objects, the tax bases, the sums of taxes determined by the Code of umensheniye, the deductible (reduced) amounts which arose as regards types of activity and transactions taxable,

4) if the taxpayer at the same time gains income, not subject and taxable, then the taxpayer shall keep separate account not the of subjects and the taxable income which is directly connected with their receipt of umensheniye and the taxable, outright connected with their obtaining umensheniye,

5) if the taxpayer at the same time receives the elements (income) which are not considered as the income for the purpose of the taxation, then the taxpayer shall keep separate account of the elements (income) which is directly connected with their receipt of the umensheniye not considered as the income for the purpose of the taxation and which are considered as the income for the purpose of the taxation of elements (income) which is directly connected with their receipt of umensheniye

6) if the taxpayer at the same time performs types or transactions, taxable on the main and tiered rates of the same tax, then the taxpayer shall keep separate account of the taxation objects and tax bases created as regards these types of activity or transactions

7) if the taxpayer performs such transactions (functions) created as regards which the taxation objects and (or) tax bases, in the cases established by the Code can be reviewed or specified, then the taxpayer shall perform separate accounting of the taxation objects and (or) tax bases created as regards these transactions (functions)

8) if the taxpayer is considered the accountable participant or the participant of the joint activities performed according to the procedure, established by Chapter 5 of the Code, then the taxpayer shall keep separate account of the taxation objects, the tax bases, sums of taxes determined by the Code of umensheniye, the deductible (reduced) amounts created in the activities different from joint activities, and the taxation objects, the tax bases, the sums of taxes determined by the Code of umensheniye, the deductible (reduced) amounts created in joint activities

9) if the nonresident organization of the Republic of Armenia or physical person the nonresident of the Republic of Armenia has the permanent registered organization in the Republic of Armenia, then this nonresident organization or physical person the nonresident shall as regards the organization of the nonresident of the Republic of Armenia or the permanent registered organization which is in the Republic of Armenia in the Republic of Armenia of physical person of the nonresident of the Republic of Armenia, to keep separate account of the taxation objects, the tax bases, sums of taxes determined by the Code of umensheniye, the deductible (reduced) amounts.

3. 3. If conducting the allocated accounting established by Items 3-8 of part 2 of this Article is impossible, then in the cases established by Items 3-8 of part 2 of this Article, the taxation objects, taxation bases, tax amounts, deductions established by the Code and the contributory (deductible) amounts (by that part by which conducting the allocated accounting is impossible) are calculated by method of specific weights, assuming as a basis:

1) ceased to be valid

2) ceased to be valid

3) in case, stipulated in Item 3 parts 2 of this Article, specific weight of the taxation objects, tax bases, sums of the taxes determined by the Code of umensheniye, the deductible (reduced) amounts attributed to types of activity or transactions, taxable, in structure of the amounts of the taxpayer, respectively, objects of joint taxation, general tax bases established by the Code of general umensheniye, the total deductible (reduced) amounts,

4) in case, stipulated in Item 4 parts 2 of this Article, specific weight of the income, taxable, in structure of total income of the taxpayer,

5) in case, stipulated in Item 5 parts 2 of this Article, specific weight of elements (income) which are considered as the income for the purpose of the taxation in structure of total income of the taxpayer,

6) in case, stipulated in Item 6 parts 2 of this Article, specific weight of the taxation objects or tax bases attributed to type of activity, taxable at the rate differentiated from the standard tax rate in structure of the amounts of the taxpayer, respectively, objects of joint taxation or general tax bases

7) in case, stipulated in Item 7 parts 2 of this Article, specific weight of the taxation objects or tax bases created as regards the transactions (transactions) specified in this Item in structure of the amounts of the taxpayer, respectively, objects of joint taxation or general tax bases,

8) in case, stipulated in Item 8 parts 2 of this Article, specific weight of the taxation objects, tax bases, sums of the taxes determined by the Code of umensheniye, the deductible (reduced) amounts created in the activities different from joint activities, in structure of the amounts of the taxpayer, respectively, the objects of joint taxation or general tax bases established by the Code of general umensheniye, the deductible (reduced) amounts.

4. In sense of application of this Article, it is considered that it is impossible to keep separate account if the taxation objects or taxation bases or the amounts of taxes or the income or established by the Code connected with their receipt of reduction or subtracted (reduced) the amounts connected with their obtaining cannot be carried directly to taxable, non-taxable, taxable in different systems of the taxation, taxable on tiered rates:

1) to the specific transaction or

2) to specific type of activity or

3) to specific income type.

5. If it is possible to keep the separate account established by Items 3-8 of this Article, but the taxpayer did not provide it, then the tax authority has the right to determine the taxation objects, either tax bases, or tax amounts, or the income or the established by the Code of reduction or deductible (reduced) amounts connected with their obtaining using method of the corresponding specific weight established by Items 3-8 of part 3 of this Article.

6. Features of rules of application of the method of separate accounting and the method of specific weight established by part 3 of this Article established by part 2 of this Article are established in the Sections of special part of the Code relating to separate types of tax.

7. In the cases established by the Sections of the Code relating to separate types of the taxation, the financial accounting which is the basis for calculation of tax or tax base is performed on the basis of the provisions established by the laws and rules regulating financial accounting and the financial reporting if the Code does not provide features of their application.

8. For recognition of the income of person who is considered as the individual entrepreneur or the notary, the income of the individual entrepreneur or physical person, the basis the circumstance of the phenomenon is considered the party of the transaction of the individual entrepreneur, or notary or physical person.

Article 16. Rules of accounting of the transactions and transactions expressed in currency

1. Within the transactions and transactions expressed in currency:

1) the tax bases and initial cost of goods which are created in transactions on import or commodity export are determined:

and. in case of transactions on commodity import from the state which is not the member of EEU or on commodity export to the state which is not the member of EEU – respectively as of registration date of the customs declaration on commodity import or commodity export (irrespective of whether the specified customs declaration on commodity import or the specified customs declaration on commodity export in these transactions according to the procedure, the EEU established by the single customs legislation is submitted further), proceeding from the average exchange rate created this day in the foreign exchange markets, published by the Central bank of the Republic of Armenia;

. in case of transactions on commodity import from state member of EEU or to commodity export in state member of EEU - respectively as of date of commodity import on the territory of the Republic of Armenia (crossing of frontier of the Republic of Armenia) or commodity export from the Republic of Armenia (crossing of frontier of the Republic of Armenia), proceeding from the average exchange rate created in the foreign exchange markets, published this day by the Central bank of the Republic of Armenia. In case the goods cross border of the Republic of Armenia air transport or by means of the post service rendered by the post operator, the taxation basis and initial cost of goods in case of transactions from state member of EEU or to commodity export in state member of EEU are determined by commodity import as of the date specified in transport (transportation) documents: the bill of lading, delivery note or other documents, proceeding from the average exchange rate created in the foreign exchange markets, published this day by the Central bank of the Republic of Armenia

2) in case of performed between the organization by the resident of the Republic of Armenia in the territory of the Republic of Armenia or resident by the physical person and the organization not by the resident of the Republic of Armenia or physical person by the nonresident of the Republic of Armenia (except for the permanent organization of the nonresident registered in the Republic of Armenia) deliveries of goods, performance of works or provision of services and also if the obligation by calculation and the tax discharge on value added as regards transactions on delivery of goods, performance of works or provision of services by the organization by the nonresident who does not have the permanent organization registered in the Republic of Armenia according to Section 4 of the Code, the organization which is considered as the party of the transaction bears resident of the Republic of Armenia, either physical person resident of the Republic of Armenia or the permanent organization of the organization of the nonresident or physical person of the nonresident registered in the Republic of Armenia, the created tax bases and initial cost are determined as of day of the statement (irrespective of exit further as a result of refining of these transactions of the specifying settlement document according to the procedure, established by the Code, or irrespective of cancellation of the settlement document which is written out further as regards this transaction) the relevant settlement document, proceeding from the average exchange rate published by the Central bank of the Republic of Armenia in this day created in the international foreign exchange markets

3) the tax amount paid by the tax agent from the taxable income is estimated as of day of payment of this income, proceeding from the average exchange rate published by the Central bank of the Republic of Armenia in this day created in the international foreign exchange markets;

4) the taxation bases and initial costs of goods created in the cases which are not specified in Items 1-3 of this part are determined as of date of the statement of the relevant settlement document, and in the absence of the settlement document - creation of other documents constituted according to the procedure, established by the legislation, connected with the transaction or transaction, proceeding from the average exchange rate created in the foreign exchange markets, published this day by the Central bank of the Republic of Armenia.

2. In sense of application of this Article, as the average exchange rate published by the Central bank of the Republic of Armenia in this day created in the international foreign exchange markets the average exchange rate published by the Central bank of the Republic of Armenia till 16:00 o'clock this day is assumed as a basis.

Article 17. Rules of accounting of the transactions and transactions expressed in natural form

1. The tax bases and initial cost of assets which are created within the transactions and transactions expressed in natural form (not cash) are determined based on the free (market) prices, in the procedure established by the Government.

Article 18. Procedure and due dates for tax payment

1. The tax discharge is made after the reporting period (and in the cases established by the Code, also in the form of advance payments - before the end of the accounting period).

2. Tax payment due dates (including, advance payments) are established in special part of the Code, separately for each type of tax.

3. The tax discharge (including, advance payments), and (or) penalty is made by penalty fee by means of payment and settlement system, in Armenian drams.

4. The tax discharge (including, advance payments), and (or) penalty is considered penalty fee made based on the payment order of the bank serving the payer in day of transfer of the amount on single treasury account of the Republic of Armenia.

5. For the purpose of repayment of the tax liabilities by means of the single account:

1) taxpayers make the tax discharge into the single account,

2) in the payment order of tax record about the purpose of payment is not made, and in case of performing record, it is not considered by tax authority.

6. In case of mistakes in case of the tax discharge the following rules are applied:

1) for identification of the taxpayer identification taxpayer number, further - number of public services is considered priority, and in case of its absence - the copy of the certificate of lack of number of public services issued by authorized body

2) if the payer by mistake specified in the payment order other person as the taxpayer as a result of whom the tax liability of other person was extinguished, then the tax liability of other person is considered committed, and the amount is not subject to return to the payer. In this case the payer acquires the right to the civil requirement for other person.

Article 19. Tax benefits

1. The following types of tax benefits can be established by the code or the laws of the Republic of Armenia:

1) tax exemption,

2) reduction of tax object,

3) reduction of tax base,

4) reduction of the tax rate,

5) reduction of tax,

6) prolongation of payment due date of tax,

7) release, reduction, prolongation of payment due date of the provisions of the Code calculated for violation established by the Code of penalties and penalty fee.

2. The types of tax benefits established by part of 1 this Article are applicable also for payments on environmental management.

3. Tax benefits are established only by the Code or the laws of the Republic of Armenia.

4. The taxpayer can submit in tax authority the application in the form approved by tax authority and refuse the right to use of tax benefits, except as specified, established by part 6 of this Article. In case of submission of the statement established in this part:

1) the tax benefit stops to be effective as regards the taxation objects which are created from the date of submission of the statement

2) the transactions, transactions performed since day of submission of the statement in sense of application of the Code, are considered as taxable transactions, transactions,

3) the taxpayer before the termination of tax year, subsequent to the tax year including day of filing of application cannot refuse the announcement of nevospolzovaniye tax benefit,

4) unused the taxpayer the tax benefit is not subject to transition to the next accounting periods, for the purpose of reduction of future tax liabilities,

5) the nevospolzovaniye tax benefits does not exempt the taxpayer from application of the measures of responsibility established to it for violation of provisions of the legal acts governing the tax relations.

5. The tax benefits established by the Code as regards the VAT and the income tax as regards the relations, the regulated Section of the Code on special systems of the taxation, for the organizations, the individual entrepreneurs and notaries acting in special systems of the taxation stop, except for the tax benefits established as regards the VAT for transactions on import of goods to the Republic of Armenia.

6. Provisions of part 4 of this Article do not extend to the cases of submission of the written application about early termination of payment deferral of VAT amounts (or their parts) established by part 4 of article 79 of the Code.

Article 20. Exception of double taxation

1. The tax objects of the income tax and the income tax received or which are subject to obtaining outside the Republic of Armenia by the organizations by residents of the Republic of Armenia and physical persons by residents of the Republic of Armenia join in the taxation objects of the corresponding type of tax of data of the organizations and physical persons and are subject to the taxation according to the procedure, established by the Code of the Republic of Armenia if the Code does not establish other.

2. For the purpose of the taxation of the organizations of residents of the Republic of Armenia and physical persons of residents of the Republic of Armenia, the amount of the taxes calculated as regards the taxation objects determined according to the procedure, established by part of 1 this Article, decrease in the amount of those amounts of the corresponding taxes which were collected at these organizations and physical persons in foreign states, according to the legislation of data of the states.

3. According to the procedure, established by part 2 of this Article, the amounts of taxes decrease from the taxation objects which are created in foreign states, in the amount of, not exceeding the corresponding taxes, calculated according to the procedure and at the rate, the established Code.

4. If the income tax amount or the income tax which is subject to reduction according to part 3 of this Article exceeds, respectively, the income tax liability or to the income tax, arising by results of this accounting period, then the amounts exceeding tax are subject to reduction from obligations of the organization or physical person for this type of tax for the next accounting years.

Section 2. Taxpayers (tax agents) and tax authority

Chapter 4. Organizations and physical persons
Article 21. Organization

1. In sense of application of the Code, as the organizations are considered:

1) the Republic of Armenia, on behalf of state bodies, municipalities of the Republic of Armenia, on behalf of municipal managerial authorities, the Central bank of the Republic of Armenia, the legal entities who received state registration in the Republic of Armenia, registered in the Republic of Armenia organizations;

2) the organizations registered in foreign states;

3) international organizations;

4) stipulated in Clause 27 Codes permanent organizations, regardless of circumstance of condition on accounting in tax authority as the taxpayer, according to the procedure, established by Chapter 58 of the Code;

5) investment funds.

Article 22. Organizations residents and organizations nonresidents of the Republic of Armenia

1. The organization by the resident of the Republic of Armenia (further – the organization resident) that organization which location is the Republic of Armenia is considered.

2. The organization by the nonresident of the Republic of Armenia (further – the organization the nonresident) that organization which, according to part of 1 this Article, is not considered the organization by the resident is considered.

Article 23. Organization location

1. The place of state registration of the organization is considered the location of the organization (in case of organization – the place of the state accounting).

2. The location registered in the procedure for investment fund established by the legislation of the Republic of Armenia the location of the managing director of fund is considered.

Article 24. Physical person

1. In sense of application of the Code, as physical persons are considered:

1) citizens of the Republic of Armenia,

2) foreign citizens,

3) persons which do not have nationality.

2. In sense of application of the Code, as physical persons are considered also:

1) individual entrepreneurs,

2) notaries.

3. In sense of application of the Code, person with double citizenship of the Republic of Armenia is considered the citizen of the Republic of Armenia.

Article 25. Physical persons residents and nonresidents of the Republic of Armenia

1. Those physical persons which within tax year actually were in the Republic of Armenia 183 and more days are considered as physical persons as residents of the Republic of Armenia (further - physical persons residents).

2. In sense of application of this Article, also days of arrival in the Republic of Armenia and departure from the Republic of Armenia, regardless of number of hours of the actual stay of physical person in the Republic of Armenia are considered as complete days of the actual stay in the Republic of Armenia.

3. Are also considered as residents as physical persons:

1) physical persons which center of vital interests is in limits of the Republic of Armenia. In sense of application of this Item, the center of vital interests is that place where family or economic interests of physical person are concentrated. In particular, it is considered that the center of vital interests of which is in limits of the Republic of Armenia if in the Republic of Armenia there are its apartment, family, the main place of professional or other activity.

2) the physical persons which are on service of the Republic of Armenia, temporarily working outside the Republic of Armenia.

4. Those physical persons which, according to parts 1 and 3 of this Article, are not physical persons residents are considered as physical persons as nonresidents of the Republic of Armenia (further - physical persons nonresidents).

5. In sense of application of the Code if the physical person, according to parts 1 and 3 of this Article, on condition of any day of tax period is considered resident, then this physical person is considered resident all tax year.

Article 26. Residences of physical person

1. In sense of application of the Code, that place where the physical person in the procedure established by the legislation is considered registered is considered residence of physical person (including as the individual entrepreneur or the notary), and in the absence of place of registration, is considered residence of physical person the place of the actual accommodation of physical person.

Article 27. Permanent organization of the organization of the nonresident or physical person of the nonresident

1. Permanent organization (further - permanent organization) the organizations of the nonresident or physical person of the nonresident of the Republic of Armenia one of the places of activities in the Republic of Armenia registered in the tax authority as the taxpayer according to the procedure established by Chapter 58 of this Code by means of whom the organization the nonresident or the physical person the nonresident performs business activity in the territory of the Republic of Armenia, irrespective of activities implementation term, except for the case established by part 3 of this Article is considered:

1) any production site, conversions, pickings, packagings and (or) deliveries of goods;

2) any place of management;

3) any place of geological investigation of subsoil, implementation of investigation, preparatory work on getting of minerals and (or) performance of works and (or) mining, investigation and (or) provision of services on control of mining and (or) monitoring;

4) any place of activities connected with installation, adaptation and operation of game machines, computer networks and communication channels, and also transport or other infrastructure;

5) the place of sales of goods in the territory of the Republic of Armenia if other is not provided by part 3 of this Article;

6) any place for implementation of construction activities and (or) installation and construction works, and also the place of provision of services on control over the implementation of these works;

7) the location of representation or branch, except for the representation performing only the activities established by part 4 of this Article;

8) the location of the organization or physical person which perform intermediary activities in the Republic of Armenia on behalf of the nonresident organization or physical nonresident person according to the Law of the Republic of Armenia "About insurance and insurance activity";

9) according to Chapter 5 of the Code or the legislation of foreign state, the location of the accountable participant of the joint activities performed within the cooperation agreement signed with the organization by the nonresident or physical person by the nonresident if such joint activities are performed in the territory of the Republic of Armenia.

2. In case of the performance of works and (or) provision of services which are not specified regarding 1 this Article, permanent organization is the place where works are performed and services by means of workers and (or) other personnel hired by the organization by the nonresident or physical person by the nonresident are provided if these activities continue in the territory of the Republic of Armenia within 183 and more calendar days in tax year, since day of the beginning of implementation of business activity, within one or more interconnected programs.

In sense of application of this Article, those programs, agreements on which are considered interconnected or interdependent, are considered as the interconnected programs.

Those agreements which at the same time answer the following conditions are interconnected:

1) according to such agreements, the non-resident organization or physical person by the nonresident, or the organization or physical person interconnected with it for the same tax agent, or the organization interconnected with it or physical person, to either the same tax agent or the organization interconnected with it or physical person provide the same services;

2) the period between day of the end of performance of works and (or) provision of services, provided by one agreement and date of the conclusion of other agreement, does not exceed twelve-monthly continuous term.

Contracts which were signed between the organization by the nonresident or physical person by the nonresident or interconnected with them the organization or physical person and the tax agent or the organization interconnected with it or physical person, if something happens default on obligations by the organization by the nonresident or physical person by the nonresident are considered as interdependent or interconnected with them the organization or physical person influences execution of other agreements by the organization by the nonresident or physical person by the nonresident, or interconnected with them the organization or physical person and the tax agent or the organization or physical person interconnected with it.

3. In case of sales of goods at the exhibitions and fairs organized in the territory of the Republic of Armenia the nonresident organization or physical person the nonresident creates permanent organization in the Republic of Armenia if these activities continue more than thirty days.

4. Organization activity of the nonresident or physical person of the nonresident or implementation of the preparatory and (or) accompanying activities performed by the organization by the nonresident or physical person by the nonresident different from the main activities of the organization of the nonresident or physical person of the nonresident does not lead to creation of permanent organization if these activities are performed no more, than within three years. At the same time, the preparatory and (or) accompanying activities shall be performed directly for this organization of the nonresident or physical person of the nonresident, but not for other organization of the nonresident or physical person of the nonresident. As the preparatory and (or) accompanying activities are considered:

1) use of any place of the storage which is in the Republic of Armenia only for the purposes and (or) exposure of the goods belonging to the organization to the nonresident or the physical person to the nonresident;

2) only purchase of goods without their sale on the place of permanent activities;

3) on the place of permanent activities implementation only collection, processing and (or) distribution of information, advertizing or research of commodity market, works, services which are carried out by the nonresident if these activities are not the main activities of this nonresident.

5. Regardless of provisions of parts 1 and 2 of this Article if the organization the nonresident or the physical person the nonresident by means of the organization or the physical person which is considered as the dependent agent performs business activity in the territory of the Republic of Armenia, then in this case it is considered that this organization the nonresident or the physical person the nonresident has permanent organization in the territory of the Republic of Armenia, in connection with any activities which the dependent agent performs for this organization of the nonresident or physical person of the nonresident. In sense of application of this Article, that organization or physical person which at the same time correspond to the following conditions is considered the dependent agent:

1) based on contractual relations are authorized to represent the interests of the organization of the nonresident or physical person of the nonresident in the Republic of Armenia, to act on behalf and at the expense of the organization of the nonresident or physical person of the nonresident, to be effective and perform certain legal acts;

2) the activities specified in Item 1 of this part are not performed within activities of the customs representative, the specialized member of the security market and other broker activities (except for insurance intermediary activity),

3) their activities are not limited to those types of activity which are established by part 4 of this Article.

6. If part 7 of this Article does not provide other, then the organization the nonresident or the physical person the nonresident who renders services in the provision of foreign labor power of the organization or physical person performing activities in the territory of the Republic of Armenia, including, the organizations to the nonresident or the physical person to the nonresident, performing activities by means of permanent organization in these services in the territory of the Republic of Armenia is not created permanent organization if:

1) the labor power acts on behalf and for the benefit of the organization or person acting in the territory of the Republic of Armenia

2) the organization the nonresident or the physical person the nonresident which renders services in provision of foreign labor power does not bear responsibility for result of the work performed by labor power.

7. If the activities performed by the organization by the nonresident or physical person by the nonresident in the Republic of Armenia are characterized by the characteristics of permanent organization established by this Article, this organization the nonresident or the physical person the nonresident shall be registered in the procedure established by Chapter 58 of the Code in tax authority as the taxpayer. If the activities performed by the organization by the nonresident or physical person by the nonresident lead to formation of two or more permanent organizations which, compliance with Chapter 58 of the Code, shall be registered in tax authority, then only one of permanent organizations is subject to registration. The organization the nonresident or the physical person the nonresident can be registered in the procedure established by Chapter 58 of the Code in tax authority also if the activities performed by it in the Republic of Armenia are not characterized by the characteristics of permanent organization established by this Article.

8. If the activities performed by the organization by the nonresident or physical person by the nonresident in the Republic of Armenia are characterized by the characteristics of permanent organization established by this Article, but the organization the nonresident or the physical person the nonresident, compliance with Chapter 58 of the Code, were not registered in tax authority, then those regulations established by the Code by calculation and tax payment and payments which are applicable to the organization to the nonresident who does not have permanent organization or to physical person to the nonresident who does not have permanent organization are applied to this organization to the nonresident or the physical person to the nonresident.

9. In case of implementation of activities by the organization by the nonresident or physical person by the nonresident within cooperation agreement, activities of each of the parties of this agreement lead to creation of permanent organization, according to provisions of this Article.

10. In sense of application of this Article, the beginning of implementation of organization activity of the nonresident or physical person of the nonresident, it is considered:

1) day when there is one of the following phenomena:

and. the conclusion of the agreement on delivery of goods, performance of works and (or) rendering services in the territory of the Republic of Armenia

. receipt of permission to accomplishment of actions from his name in the territory of the Republic of Armenia,

century purchase of goods or commodity import to the Republic of Armenia for the purpose of realization in the territory of the Republic of Armenia,

within cooperation agreement postavleniye of goods, performance of work and rendering services in the territory of the Republic of Armenia;

acquisition of work and services for the purpose of performance of works and provision of services in the territory of the Republic of Armenia,

2) day of the conclusion of the first employment or civil contract with physical person or day of arrival of the worker in the Republic of Armenia for accomplishment of the conditions specified in agreements, stipulated in Item 1 this part. At the same time, the beginning of organization activity of the nonresident or physical person of the nonresident in the territory of the Republic of Armenia cannot be before any of the terms established by subitems of "a"-"d" of Item 1 of this part

3) the date of entry into force of the document certifying the right of the organization of the nonresident or physical person of the nonresident to implementation of the types of activity established in Items 3 and 4 of part of 1 this Article.

In the presence of several of the conditions established by this Article, the beginning of activities in the territory of the Republic of Armenia earlier term specified in this Article is considered.

Article 28. Official of the taxpayer (tax agent)

1. In sense of application of the Code, the physical person which by force of the law or by proxy in the form established by tax authority is authorized to represent the taxpayer (tax agent) in tax authority, the cases except for established by this Article is considered the official of the taxpayer (tax agent).

2. In every respect, connected with investment fund (except for the pension fund) as the taxpayer, instead of it the managing director of investment fund, at the expense of this investment fund acts.

3. Persons holding the state or municipal positions established by the Law "About Public Service" cannot act as officials of the taxpayer.

Article 29. Tax agent

1. The tax agent is the organization, the business owner or the notary paying (providing or transferring in natural form) - registered in the tax authority as the taxpayer according to the procedure established by Chapter 58 of the Code the income to taxpayers to whom, according to the Code, the obligation by calculation, deduction (collection) and payment in the government budget of the Republic of Armenia of taxes and fees is assigned. In sense of application of this part, payment (provision or transfer in natural form) the income the tax agent it is also considered to the taxpayer:

1) payment (provision or transfer in natural form) the income the tax agent to person specified by the taxpayer,

2) payment (provision or transfer in natural form) the income person specified by the tax agent to the taxpayer gaining income.

2. If, according to the ratified international agreement of the Republic of Armenia, the organization is exempted from the obligation by calculation, deduction (collection) and payment in the government budget of the Republic of Armenia of taxes on the income of the taxpayer in case of payment (provision or transfer in natural form) the income of taxpayers, then this organization can provide to tax authority the announcement in the form established by tax authority and by the principle of voluntariness to act as the tax agent. In this case the tax agent for the first time perfroms calculation, deduction (collection) and payment in the government budget of the Republic of Armenia for the accounting period including day of submission of the announcement.

3. Tax agents bear responsibility for non-execution or improper execution of the obligations according to the procedure, established by the Code.

Article 30. The interconnected organizations and (or) physical persons

1. In sense of application of the Code, the organization and (or) physical persons are considered interconnected if:

1) 20 percent and more shares of the authorized (equity) capital of trade organization of resident belong to other trade organization to the resident, the individual entrepreneur or the notary,

2) 20 percent and more share (shares, shares) of the authorized (equity) capital of trade organization of resident belong to the physical person who is not individual entrepreneur who at the same time possesses 20 percent and more share (shares, shares) of the authorized (equity) capital of other trade organization of resident.

2. Regardless of availability of the conditions specified regarding 1 this Article, the organizations and (or) physical persons are considered interconnected if based on information obtained from the third party identified by Chapter 70 of the Code (including, state body) or as a result of operational search actions, the organizations and (or) physical persons, based on coordinated action, proceeding from common economic interests, according to the procedure, established by tax authority, according to the decision of the head of tax authority, are recognized interconnected. In sense of application of this part, in case of recognition of taxpayers interconnected, in particular, the following circumstances are considered:

1) amount, frequency of the bargains concluded between them

2) the subsequent selling prices and commercial allowances on the goods acquired each other

3) share size in any goods market.

3. In sense of application of the rules of transfer pricing established by Chapter 73 of the Code, additional regulations to consider the organizations and physical persons interconnected, are established by this Chapter.

Chapter 5. Participants of joint activities
Article 31. Cooperation agreement

1. The organizations and individual entrepreneurs have the right to perform joint activities without creation of the new legal entity within cooperation agreement identified by the Civil code of the Republic of Armenia.

Article 32. Participants of joint activities and accountable participant

1. Obligations by calculation and tax payment for joint activities (except for the income tax and the income tax withheld by the tax agent of the ecological and local taxes), charges (except for charges for environmental management, social charges and local charges), advance payments are made by the accountable participant of joint activities.

2. In joint activities in the cases established by the Code and procedure transfer is made into the single account of the accountable participant.

3. That participant of joint activities who has the following specified in this part of the characteristic, in priority procedure is considered the accountable participant of joint activities:

1) it is considered the organization by the resident or the individual entrepreneur making and (or) importing the goods which are subject to excise tax liability. If among participants of joint activities there are more than one organization of resident or the individual entrepreneur which are producers of the goods which are subject to excise tax liability, then the accountable participant the organization the resident or the individual entrepreneur who at the time of agreement signature about joint activities has the greatest investments is considered.

2) it is considered the organization by the resident or the individual entrepreneur making and (or) importing goods, subject to obligatory marking. If among participants of joint activities there are more than one organization of resident or the individual entrepreneur which are producers of the goods which are subject to obligatory marking, then the accountable participant the organization the resident or the individual entrepreneur who at the time of agreement signature about joint activities, has the greatest investments is considered.

3) it is considered the organization by the resident or the individual entrepreneur and has the notice or the operating authority within joint activities. If among participants of joint activities there are more than one organization of resident or the individual entrepreneur having the notice or the operating authority within joint activities, then the accountable participant the organization the resident or the individual entrepreneur who at the time of agreement signature about joint activities, has the greatest investments is considered.

4) it is considered the organization by the resident paying the value added tax. If among participants of joint activities there are more than one organization of resident paying the value added tax, then the accountable participant the organization the resident who at the time of agreement signature about joint business, has the greatest investments is considered.

5) it is considered the individual entrepreneur paying the value added tax. If among participants of joint activities there are more than one individual entrepreneur of the resident having the notice or permission on implementation of activities within joint activities, then the accountable participant the individual entrepreneur resident which at the time of agreement signature about joint activities, has the greatest investments is considered.

6) it is considered the organization by the resident. If among participants of joint activities there are more than one organization of resident, then the accountable participant the organization the resident who at the time of agreement signature about joint activities has the greatest investments is considered.

7) it is considered the individual entrepreneur resident. If among participants of joint activities there are more than one individual entrepreneur, then the accountable participant the individual entrepreneur resident which at the time of agreement signature about joint activities has the greatest investments is considered.

4. In the cases established by Items 1-7 of part 3 of this Article if at the time of agreement signature about joint activities is more, than one participant (in case of two participants, two participants with equal shares) having the greatest contribution to joint activities, then the accountable participant of joint activities is determined by mutual consent of participants.

5. In case of change of list of participants of joint activities during joint activities and (or) changes in deposits of participants of joint activities, the accountable participant does not change, except as specified, provided by part 8 of this Article.

6. The organization or the individual entrepreneur can be accountable participants only within one cooperation agreement.

7. The accountable participant of joint activities, before implementation of the first transaction within joint activities, submits in tax authority the application in the form of formation by the accountable participant of joint activities established by tax authority (with indication of the consent of other participants of joint activities), having attached the copy of cooperation agreement. The tax authority within five working days after receipt of the statement specified in this part considers circumstances of the satisfaction or discrepancy submitting the application to the conditions established by parts 3 and 4 of this Article, and respectively adopts the statement or returns it to the applicant, having specified in writing the basis for refusal of the statement. If the tax authority adopts the statement, the question of adoption of the application cannot be considered any more, even in case of examination that any of the precedent conditions established by parts 3 and 4 of this Article was not satisfied. In case of non-return submitting applications in

the current of five working days after obtaining by tax authority, the statement is deemed accepted by tax authority next day after its obtaining.

8. If the accountable participant of joint activities stops to be considered as the agreement party about joint activities, then according to this Article, the new accountable participant of joint activities about whom within five working days after election, according to part 7 of this Article, the corresponding application in tax authority is submitted is elected, having attached to it copies of cooperation agreement. The tax authority within five working days after receipt of the statement specified in this part considers circumstances of the satisfaction or discrepancy submitting the application to the conditions established by parts 3 and 4 of this Article, and respectively adopts the statement or returns it to the applicant, having specified in writing the basis for refusal of the statement. If the tax authority adopts the statement, the question of adoption of the application cannot be considered any more, even in case of examination that any of the precedent conditions established by parts 3 and 4 of this Article was not satisfied. In case of non-return submitting applications within five working days after obtaining by tax authority, the statement is deemed accepted by tax authority next day after its obtaining.

9. In case of termination of the contract about joint activities according to the procedure, established by the legislation, the accountable participant of joint activities shall provide to tax authority within five working days the statement in the form established by tax authority.

Chapter 6. Rights and obligations of taxpayers (tax agents) and their officials
Article 33. Obligations of taxpayers (tax agents) and their officials

1. The taxpayer (tax agent) and his officials shall:

1) if the Code does not establish other, according to the procedure and the terms established by the Code and the laws of the Republic of Armenia on charges independently to calculate and fulfill the tax liabilities, in the cases established by the Code and the laws of the Republic of Armenia on charges and procedure also making advance payments on taxes and (or) charges.

To record 2), established by the Code and the laws of the Republic of Armenia on charges, and in cases, stipulated by the legislation, also financial accounting,

3) to represent tax calculations according to the procedure and the terms established by the Code and the laws of the Republic of Armenia on charges

4) to submit the documents certifying the rights to tax benefits

5) to provide document storage, necessary for calculation tax bases and representations of tax calculations, documents, obosnuyushchy the size of the gained income or the made expenses, the paid (withheld) taxes are at least, than within five years, since the accounting period to which these documents belong,

6) together with copies of the settlement documents completed (constituted) in the languages differing from the Russian and English languages to provide their copies translated into Armenian,

7) to each address of implementation of the activities, in the most noticeable place (on the location and (or) the place of decision making on management, on places of operational financial management, on the corresponding signs) to place the announcement in the form established by tax authority, with indication of the complete name of the taxpayer (in case of individual entrepreneurs – name, surname, middle name of physical person), identification taxpayer number, the address of the place of activities and type(s) of activities performed to this address;

8) to provide working conditions for implementation of tax control, that number, to provide official, to persons exercising the tax control, documents necessary for calculation and tax payment and charges and also their photocopy (expenses on copying are made at the expense of tax authority) or duplicates;

9) by the written request of the officials who are carrying out complex tax audit in the procedure established by Section 17 of the Code on the electronic medium to provide the copy of the file created by means of the computer program for financial accounting (as regards the period including according to the order about check);

10) not to interfere with execution of service duties of the officials exercising tax control, to fulfill their legal requirements;

To appoint 11) (to authorize) the officials replacing to themselves for accomplishment of obligations during the absence;

12) in case of disagreement with the facts, protocols and their projects, references and the administrative acts which are drawn up as a result of tax control, and not signing to make the corresponding entries in the specified documents;

Inclusive representations of the tax calculations for the first accounting period provided by the Code to provide 13) after receipt of state registration (registration) till last day to tax authority and if the Code provides the mandatory requirement of submission of the specified documents by electronic method and the contract with tax authority on representation of tax calculations is signed by electronic method, in the Section "Private office" of system of electronic control of submission of reports of tax authority to fill the e-mail address to which tax authority by electronic method notifications within the administration performed by tax authority in the cases provided by the Code will go.

2. The taxpayer (tax agent) and his official also have other obligations established by the Code and the laws of the Republic of Armenia on charges.

Article 34. Rights of the taxpayer (tax agents) and their officials

1. The taxpayer (tax agent) and his official have the right:

1) in the procedure established by the Code to address to tax authority behind explanations concerning application of provisions of the legal acts governing the tax relations;

2) to represent the interests in tax authority independently or by means of the authorized representative;

3) to use the tax benefits provided by the Code and the laws of the Republic of Armenia;

4) to address to tax authority in cases and according to the procedure, established by the Code, for return of the amount which is available on the single account;

5) to study acts, protocols and their projects, references and the administrative acts which are drawn up as a result of tax control;

6) to furnish explanations and explanations concerning calculation and tax payment and charges, and also results of tax control;

7) to prohibit to tax authorities to perform tax audits, not to show documents or explanations for officials of tax authorities if the officials exercising tax control broke provisions of Item 12 of part 1 of Article 35 and (or) Item 13 of part 1 of article 36 of the Code, and (or) the tax authority broke provisions of articles 337-339 and (or) 341 of the Code, within three working days in writing notifying on it the head of tax authority;

8) not to fulfill the requirements which are not proceeding from powers of officials of tax authority, and also the purposes and tasks of tax control;

9) at any stage of tax control to involve specialists, experts, auditors and (or) lawyers;

10) in the procedure established by the Code and the legislation to appeal decisions, actions and failure to act of officials of tax authority;

11) to require compensation for the damage caused to them by illegal decisions, actions or failure to act of tax authority and officials of tax authority according to the legislation of the Republic of Armenia.

2. The taxpayer (tax agent) and his official have also other rights established by the Code and the laws on charges of the Republic of Armenia.

Chapter 7. The rights and obligations of tax authority (the official exercising tax control)
Article 35. Obligations of tax authority (the official exercising tax control)

1. The tax authority (the official exercising tax control) shall:

1) to observe the legislation of the Republic of Armenia, the right and legitimate interests of taxpayers (tax agents);

2) to perform registration of taxpayers;

3) to carry out explanatory and notifying works about regulations of the legal acts governing the tax relations and on application of their changes, to notify taxpayers (tax agents) on taxes and fees;

4) in accordance with the established procedure to make explanations to requests in oral, written and electronic form, the provided taxpayer (tax agent) in tax authority;

To return 5) in the cases, procedure and terms established by the Code to the taxpayer (tax agent) of the amount, available on the single account;

6) to give the reference based on the statement of the taxpayer (tax agent) according to the procedure and form, established by tax authority (including, upon the demand of the taxpayer, also in the English and Russian languages) about the national taxes and the state charges paid in the Republic of Armenia;

7) exercises control of observance of requirements of the legal acts governing the tax relations;

8) in case of identification of cases of violation of the regulatory legal acts governing the tax relations with essential elements of offense to investigate according to the procedure, established by the law;

9) to observe tax secret, information which is considered as tax secret in the procedure established by the Government of the Republic of Armenia, to provide to state bodies, authorized to carry out work with use of such information;

10) according to the procedure and the terms established by the Code to consider the statement claim of the taxpayer against actions or failure to act of tax authority or the tax employee and to notify the taxpayer properly on the made decision;

11) to make office investigation on the tax offenses made by tax employees;

12) during tax control:

and. observe the requirements established by the Code and the laws of the Republic of Armenia

. not be beyond the purposes and tasks stated in the order about tax audit

to acquaint the taxpayer (tax agent) and his officials with their rights and obligations century,

not interfere with normal work of the taxpayer (tax agent),

to respond within three working days in writing to any written requests of the taxpayer (tax agent) or his official which are directly connected with tax control and relating to the period of tax control, except for official explanations by provisions of the legal acts governing the tax relations.

2. The tax authority (the official exercising tax control) also has other obligations established by the Code and the laws of the Republic of Armenia on charges.

Article 36. Powers of tax authority (the official exercising tax control)

1. The tax authority (the official exercising tax control) is authorized:

1) according to the procedure, established by Section 17 of the Code to exercise tax control at taxpayers (tax agents) concerning observance of the requirements of the legislation established by the same Section of the Code assigning powers to tax authority;

2) independently to estimate, count and specify the tax liabilities of the taxpayer (tax agent) in the cases and procedure established by the Code;

3) within powers, stipulated by the legislation for tax authority, in the procedure established by the Code to exercise tax control at the taxpayers performing the activities established by the law which are subject to licensing, either the notification or permission without license, or notifications or permissions (including use of subsoil or natural resources);

4) to perform measurements, inventory count, test purchases according to the procedure, established by the Code;

4. 1) to carry out monitoring of transactions of the taxpayer, other industry analyses of activities and for their results to inform the taxpayer by means of notifications on decrease in the estimated risks;

To store 5) in the procedure established by the Code and by means of tax employees to carry arms and ammunition;

6) in the procedure established by the law to hold operational and prospecting events, in case of information availability about the prepared, made or committed tax offenses, and also other facts and circumstances specifying making of tax offense;

7) to use vehicles and means of communication of the organizations and physical persons, proceeding from operational need, refunding expenses in the procedure established by the legislation;

8) to give to authorized bodies of the petition for recognition invalid, either suspension of action of licenses, or the notifications or permissions issued to the organizations and physical persons;

9) to represent offers to other state bodies performing checks on the abuses and other violations revealed within tax control attracting administrative or criminal liability for acceptance of adequate measures;

10) to file a lawsuit the claim, to appear in quality of the claimant or defendant in court and to issue the power of attorney on trial in court;

11) to impose arrest property of the taxpayer (tax agent) in the cases and procedure established by the Code for the purpose of collection of the tax liabilities;

12) makes explanations concerning application of provisions of the legal acts governing the tax relations;

13) during tax control:

and. require only such documents, made, the explanations, references, calculations and other information which are directly connected with the purposes and questions of the tax control exercised within their powers;

. in established by the Code cases, in the procedure established by the Government to receive documents (including, in the form of originals, duplicates or photocopies), objects (the duplicate of the documents containing information connected with this tax audit on the material carrier) or samples which are directly connected with the purposes and tasks of tax control and which withdrawal does not interfere with normal work of the taxpayer. Without delay in case of elimination of the requirement, but no later than in three years after adoption of documents, they be returned to the taxpayer;

century in the presence of the representative of the taxpayer, freely to enter office, commercial, production, warehouse, archival areas and other territories and buildings used for implementation of activities of the taxpayer in case of carrying out inventory count, measurements, and also other cases established by the Code, to seal these territories and buildings, cash desks, cargo cabins, cargo cameras, tanks, to perform survey of the territories and buildings, and also vehicles, documents and objects specified in this Item;

in need of to attract in implementation of tax control of specialists of the taxpayer (tax agent), with the consent of the taxpayer (tax agent) or his official;

require from the taxpayer or his representative of carrying out inventory count of assets and liabilities only within the purposes and questions of tax control, including, with involvement of the relevant employees and specialists of the taxpayer (tax agent);

e. employ experts, experts and translators according to the procedure, established by the Code;

. according to the procedure, established by the Code to require elimination of the revealed violations of requirements of the legal acts governing the tax relations.

2. The tax authority (the official exercising tax control) also has other powers established by the Code and the laws of the Republic of Armenia on charges.

Section 3. Tax liabilities, reporting system and settlement documents

Chapter 8. Tax liability and its accomplishment
Article 37. Place of delivery of goods

1. The Republic of Armenia is considered the place of delivery if at the time of delivery goods it is in the territory of the Republic of Armenia or if goods are exported from the Republic of Armenia.

2. If the place of delivery of goods, according to part of 1 this Article, the Republic of Armenia is not considered, then the place of delivery of goods the place outside the Republic of Armenia is considered.

Article 38. Moment of delivery of goods

1. If the Code or this article do not establish other, then the moment specified in this part which arose earlier is considered the moment of delivery of goods:

1) the moment when the goods are transferred to the other person, except as specified, when the property right to goods, according to the agreement on delivery of goods, passes to the other person at other moment, if something happens is considered the moment of delivery of goods this moment, or

2) the moment when the delivered goods accept the other person, except as specified, when the property right to goods, according to the agreement on delivery of goods, passes to the other person at other moment, if something happens is considered the moment of delivery of goods this moment.

2. If the property right to goods is subject to state registration, then the moment of state registration of the right to property is considered the moment of delivery of goods.

3. If the agreement of leasing (versions) provides that after the termination of effective period of this agreement or before its termination the property right regarding leasing can pass to the leasing recipient, then the moment of delivery of the goods which are leasing subject the last day of every month in the amount of the corresponding amount of cost of subject of the leasing which is subject to obtaining within this month is considered if other is not provided by the second paragraph of this part. If the leasing subject of the agreement of leasing (versions) is transferred to the leasing recipient by the property right till last day of month, then the moment of delivery of the goods which are leasing subject date of transmission of subject of leasing to the leasing recipient by the property right in the amount of the corresponding amount of the cost of subject of leasing which is subject to receipt within a month of transfer of subject of leasing to the leasing recipient by the property right is considered if other is not established by the second paragraph of this part.

In case of receipt of the preliminary payment constituting part of the cost of subject of leasing provided by the agreement of leasing (versions) until acceptance of subject of leasing the right to the income it is considered acquired from the moment of acceptance of subject of leasing in the amount of the preliminary payment constituting part of the cost of subject of leasing received up to this point.

Article 39. Place of performance of work and provision of service

1. The Republic of Armenia is considered the place of performance of work and (or) provision of service if:

1) the performed works and (or) the provided services directly are connected with the real estate which is, under construction or planned for the territories of the Republic of Armenia. In particular, treat the works and (or) services specified in this Item:

and. works and services in preparation and realization of construction (including investigation, design, design, assembly, author's and on engineering supervision);

. works and services in repair, restoration and gardening;

century of work and the services provided by agents and experts in purchase and property sale (including services in estimation of the real estate);

of service in provision of the real estate in lease (including, leasing (versions) or use;

2) the performed works and (or) the provided services are directly connected with the personal estate (including vehicles) which is in the territory of the Republic of Armenia, except for provisions of personal estate in lease (including services in delivery in leasing (versions) or use).

3) services in spheres of culture, art, education, science, health care, physical culture, tourism, rest and sport are actually provided in the territory of the Republic of Armenia.

4) the organization which location, according to Chapter 4 of the Code, the Republic of Armenia or physical person which residence, according to Chapter 4 of the Code, is considered the Republic of Armenia is considered or permanent organization accepts the following works or receives the following services (including in cases when it directly takes over work or services the organization the nonresident or the physical person the nonresident receives, but their use (consumption) is actually carried out by their permanent organization):

and. patents, licenses, notifications, permissions, trademarks, trademarks, copyright and other similar services;

. works, services in development of programs of electronic computer facilities and databases (software of computer facilities and information products), services in adaptation and modification;

century consulting, legal, accounting, auditor, engineering, advertizing, design, marketing work, works on processing (including, on collection and generalization) and transfer (message) of information, research, experimental and design and experimental and technological (technological) activities, and also the services similar to the services specified in this subitem;

of service in work provision to personnel (employees) in that case when the personnel work at the place of activities of the receiver of these services;

on delivery of personal estate (except for services in delivery of vehicles in lease (including leasing (versions) or use, the place rendering which is determined according to the procedure, stipulated in Item the 6th this part) in lease (including services in delivery in leasing (versions) or use);

e. agency services on involvement of the organization and (or) physical person, performing the works established by this Item and (or) providing services for the customer;

5) the organization by the nonresident of the Republic of Armenia, performs such transport services in transportation of goods and (or) passengers who begin and come to an end in the territory of the Republic of Armenia;

6) or the residence of physical person, according to Chapter 4 of the Code, is considered the location of the organization or the permanent organization performing work and (or) providing services the Republic of Armenia if other is not established by Items 1-4 and Item of 1 part of the 2nd this part.

2. The place of performance of work or rendering service is considered outside the Republic of Armenia if:

The organization which location, according to Chapter 4 of the Code, the Republic of Armenia, or physical person which residence, according to Chapter 4 of the Code, the Republic of Armenia is not considered is not considered accepts 1) or gets the job or services specified in item 4 of part of 1 this Article (except as specified when it directly accepts works or services the nonresident organization or physical nonresident person directly receives, however their use (consumption) is actually made by their permanent organization);

2) the place of performance of work or rendering service, according to part of 1 this Article, the Republic of Armenia is not considered.

3. If the organization or physical person carries out several work types and (or) provides several types of service, and accomplishment of one work type in relation to accomplishment of other work types or provision of other types of service, has the accompanying character, then the place of accomplishment of the accompanying work or provision of the accompanying service the place of accomplishment of the main works or provision of the main services is recognized.

4. In sense of application of the Code:

1) the description of works or services is performed according to classification of the economic activity applied in the Republic of Armenia;

2) work or service reckon similar with any other work or service specified in the relevant article, part, Item or the subitem of the Code if it is included in that class of the types of economic activity applied in the Republic of Armenia which includes other work specified in the relevant article, part, Item or the subitem or service.

Article 40. Moment of performance of work and provision of service

1. The last day of every month is considered the moment of accomplishment of public services and utilities.

2. The provision moment in lease or leasing (versions) (if the agreement does not provide that after the termination of the duration of the agreement or before its termination the property right regarding leasing can pass to the leasing recipient or if the agreement of leasing (versions) provides that after the termination of effective period of this agreement or before its termination the property right regarding leasing can pass to the leasing recipient as regards the amounts of the percent which are subject to obtaining under the agreement of leasing (versions)), or the moment of provision of service in use of property the last day of each accounting period for the corresponding tax is considered and if the agreement on provision of these services does not provide that provision of services comes to an end till last day of the accounting period, then the last day of provision of services is considered the moment of provision of services.

3. The moment of provision of services, provided on subscriber bases (in particular, services in use of computer programs, databases, the patent, the license, notifications, permissions, trademarks, copyright and other similar rights) the last day of every month is considered and if the agreement on provision of these services provides other terms (stages) of provision of services, then the last day of these terms (stages) is considered the moment of provision of these services.

4. If the Code does not provide other, then the moment of performance of works, not specified in parts 1-3 of this Article, the moment specified in this part arising earlier is considered

1) that moment, when:

and. performing work transfers the ownership to result of work taking over work;

. providing service finishes actions for benefit of the receiver of service (including provided under the agreement);

century providing service transfers the ownership to intangible asset to the receiver of service.

2) taking over work and (or) the receiver of service approves the settlement document which is written out in performance of work and (or) provision of service by the person performing work and (or) providing services.

5. When it is impossible to determine the moment of performance of works or rendering the services which are not specified in parts 1-3 of this Article, in the procedure established by part 4 of this Article, the moment of accomplishment of these works or provision of services is considered:

1) that moment when the organization or physical person performing work and (or) providing services according to the agreement, acquire the right, without returning earlier received amounts for outstanding part of work and (or) not provided part of service (except for the amount provided by the law which is considered as advance payment), to stop performance of works and (or) provision of services,

2) the last day of the accounting period when it became obvious that taking over work and (or) the receiver of services not later, than during the specified accounting period took over this work and (or) received this service, and in the case provided by the agreement on performance of work and (or) provision of service got the job and (or) service provided at this stage.

Article 41. Recognition invalid transactions about delivery of goods, performance of work and (or) provision of services

1. In sense of application of the Code, transaction about delivery of goods, performance of work and (or) provision of services, are considered invalid according to the court order.

2. The transaction recognized as invalid does not involve the legal consequences established by the Code for its parties (including the rights and obligations), except for consequences of invalidity of the transaction in the cases established by part 2.1 of this Article.

2.1. In case of invalidity of the transaction the consequence in law established by the Code for the parties (including the rights and obligations), arise only as regards not returned goods, not returned results of work and (or) not returned results of services.

3. The written-out earlier settlement document as regards the transaction, acknowledged invalid, according to article 56 of the Code, is nullified.

4. In case of recognition of the transaction invalid, the taxpayers who are considered as the parties of the transaction according to appropriate sections of the Code, represent results of recognition of the transaction invalid in the corresponding tax calculations established by part of 1 this Article provided to tax authority for the accounting periods including date of the court order.

5. If there is no 1 this Article of the bases for recognition of the invalid transaction on delivery of goods established by part, to accomplishment and (or) provision of services, but the parties of the transaction recognized it invalid, invalidity of the transaction is not taken into account.

Article 42. Refining of the transaction on delivery of goods, to performance of work and (or) provision of services

1. For the purpose of application of the Code the transaction on delivery of goods, performance of work and (or) rendering service is specified in the following cases:

1) the subject of the transaction is the goods having expiration date (storages);

2) subject of the transaction – public or municipal service, and the written agreement signed between the parties of the transaction provides that the amount of these transactions can be after the reporting period specified;

3) the quantity, amount and (or) quality characteristics of the goods which are subject of the transaction according to the delivery agreement of goods, are checked by the buyer at the time of acceptance of goods, and it becomes clear that one of them does not correspond to the conditions established by the agreement owing to what goods (or its part) are subject to partial acceptance or return;

4) the goods which are subject of the transaction were delivered in bigger quantity, than was established by settlement documents, and surplus of the delivered goods was accepted by the buyer;

5) in case of transactions on performance of works or rendering services when amount of completed work or the rendered services by the end of the transaction was big or smaller, than the amount provided by initially written out relevant settlement document, except as specified when:

and. works or services were already (actually) executed or rendered on the conditions specified in the written-out settlement document corresponding to real terms of transaction;

. the work content or services such is that return of result of work or service is impossible.

As regards the drawn-up settlement account or the invoice the specifying tax account or the specifying invoice cannot be drawn up respectively if since the tax year covering date of its statement there passed three tax years.

2. The specified transaction attracts for its parties the consequence in law established by the Code, including, the rights and obligations, only by that part which remains as a result of refining of the transaction.

3. The written-out earlier settlement document as regards the specified transaction, continues to be considered as the valid document, but as regards the specified transaction the supplier of goods performing work and (or) providing services (except for the taxpayers rendering public services) in stipulated in Clause 56 Codes procedure write out also relevant specifying settlement document established according to the procedure, stipulated in Clause 55 Codes. The taxpayers rendering public services reflect results of thinning of the transaction, according to the legal acts regulating the sphere of public services in the relevant settlement documents which are written out for transactions on delivery of goods, performance of works and (or) rendering the services performed within a month, the refining making including day.

4. In case of refining of the transaction, the taxpayers who are considered as the parties of the transaction (except for the taxpayers established by part 5 of this Article), shall provide results of refining of the transaction:

1) to reflect amendments as regards the VAT and the excise tax in the tax calculations constituted by them according to articles 52 and 53 of the Code and provided to tax authority for the accounting periods which include date of the statement of the relevant specifying settlement document if as a result of refining of the transaction, the amounts which arose from the transaction and the tax amounts which are subject to calculation (reduction) decrease;

2) to reflect amendments as regards the VAT and the excise tax in the tax calculations constituted by them according to articles 52 and 53 of the Code and provided to tax authority for the accounting periods which include date of accomplishment of the main transaction if as a result of refining of the transaction the amounts which arose from the transaction and the tax amounts which are subject to calculation (reduction) increase;

3) to reflect amendments as regards other taxes and payments for environmental management in the tax calculations constituted by them according to articles 52 and 53 of the Code and provided to tax authority for the accounting periods which include date of accomplishment of the main transaction.

5. The taxpayers rendering public services shall reflect results of thinning of the transaction in the tax calculations for the accounting period including day of making of refining constituted by them and represented to tax authority according to the procedure, established by articles 52 and 52 of the Code.

6. If there are no bases established by part of 1 this Article for refining of the transaction on delivery of goods, to performance of works and (or) provision of services, and the supplier of goods performing work and (or) providing services made refining of the transaction (wrote out the specifying settlement document), then refining of the transaction is not taken into account.

Article 43. Tax liability

1. The tax liability the obligation of the taxpayer on payment of any kind of tax and (or) the charges and also calculated for violation of provisions of the Code and the laws of the Republic of Armenia on charges, established by the Code and (or) the laws of the Republic of Armenia on charges of penalties, penalty fee, and also amounts on compensation of damage, except as specified, established by part 2 of this Article is considered.

2. In sense of application of Section 16 of the Code, the tax liability includes only obligations of the taxpayer on tax payment (except for the amounts of road tax, the local taxes, and also obligations on ecological tax for which, according to Section 8 of the Code, the requirement of representation of tax calculation is not established), social payments, payment for environmental management (except for the amounts in environmental management for which, according to Section 10 of the Code, the requirement of representation of tax calculation is not established) and obligatory payment for regulation of the public services and also calculated for violation of requirements of the Code and (or) specified in this part of the laws of the Republic of Armenia on charges, penalties and penalty fee, established by the Code and (or) the laws of the Republic of Armenia on charges specified in this part and also the amounts on compensation of damage.

Article 44. Emergence of the tax liability

1. The tax liability arises in the cases established by the Code or the Laws of the Republic of Armenia on charges.

2. In case of detection of violations of requirements of the Code or the laws of the Republic of Armenia on charges as a result of the inspections which are carried out according to the procedure, established in Section 17 of the Code and monitorings established by Items 2-6 of part 5 of article 343 of the Code, the tax liabilities cannot arise if they were pushed to the taxpayer when making violation on the expiration of three tax years (except for the case provided by the second paragraph of part 5 of this Article), and in case of detection of violations of requirements of the Sections of the Code relating to the real estate tax and tax on vehicles, the tax liabilities cannot arise if this violation was found on the expiration of ten tax years after its making.

3. In sense of application of part 2 of this Article, the tax year including the last day of the term established by the Code and the laws of the Republic of Armenia on charges for submission to tax authority of the corresponding tax calculation containing violation is tax year of violation.

4. The prescriptive limit established by part 2 of this Article stops if on absence reason of the taxpayer, the official of the taxpayer or for other arisen reasons there is impossible implementation of check or calculation of the tax liabilities otherwise. Action of the prescriptive limit established by part 2 of this Article stops in case of fixation of availability of these bases (or one of them), the official of tax authority in the procedure established by the Government. After the termination of the bases for suspension established by this part, prescriptive limit proceeds if the tax authority or the corresponding official of tax authority knew or could know about suspension of the bases for the termination.

5. The tax liabilities or the contributory (deductible) amounts), provided by the taxpayer by tax calculation, cannot be changed if they treat the accounting period from which last day there passed three years if other is not provided by this part.

During the period between the term established by this part, and the term established by part 2 of this Article, the taxpayer the tax calculation lowering the tax liabilities or increasing the contributory (deductible) amounts concerning the accounting period included in time, established by the first paragraph of this part which can be checked by tax authority within the year following behind day of its giving can be given.

6. If the inaccuracies which are available in the tax calculations provided by taxpayers who in cases and the procedure established by the Code, it is impossible to specify by means of representation of the specified tax calculations became known to the Government or in the cases established by the Code and the laws of the Republic of Armenia on charges it is necessary to make recalculation of the tax liabilities of the taxpayer, then these obligations can be specified in the procedure established by the Government, without implementation of checks at taxpayers (including, repeated). If as a result of the amendments of the tax liabilities established by this part, there is tax liability, or the available earlier tax liability increases, then the taxpayer is exempted from application of the penalty established by the Code for representation of tax amount it is less, than it is. In sense of application of this part or change of the contributory (deductible) amounts of the tax liability is not made:

1) if the terms established by part 2 of this Article for representation of the tax liabilities expired;

2) if the terms established by part 5 of this Article for change of the tax liabilities expired and if refining of the tax liability leads to reduction of the tax liability or increase in the calculated (reduced) amounts;

3) in the course of the checks or studying which are carried out at the taxpayer and also during their suspension – as regards the tax or payment concerning check or studying.

7. Information obtained about taxpayers with violation of the Code and other laws of the Republic of Armenia cannot form the basis for calculation and collection of the tax liabilities.

8. No information can be the basis for calculation and collection of the tax liability of the taxpayer while the taxpayer had no opportunity to get acquainted with it and to make the corresponding explanations, except for to information on the additional obligations which arose as regards the taxes and (or) charges during production about bankruptcy provided to tax authority to managing directors from his name in the form established by tax authority based on which the tax liabilities of the debtor are estimated.

Article 45. Termination of the tax liabilities

1. The tax liability stops:

1) when it is performed;

2) when the tax benefit on release or reduction of the tax liability, in the amount of the exempted or reduced obligation is established;

3) when case on bankruptcy of the organization or physical person comes to an end according to the court decree which took legal effect, and there is no person who bears responsibility according to the Code for accomplishment of the tax liability;

4) when it to become hopeless and within five years after formation hopeless, it is not levied;

5) when the physical person died, except as specified, established by parts 1 and 2 of article 51 of the Code;

6) in the cases established by the laws of the Republic of Armenia on charges.

2. In sense of application of item 4 of part of 1 this Article, not fulfilled tax liabilities are considered hopeless if:

1) enforcement proceedings on collection of the tax liabilities of the physical person who is not the individual entrepreneur and the notary ended based on impossibility of determination of the location of the debtor or his property, lack of property or the income of the debtor or lack of sufficient property for satisfaction of requirements of the claimant.

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