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Article 1. Taxpayers

The taxpayers of the income tax within the Republic of Armenia are:

a) individuals having permanent residence in the Republic of Armenia, irrespective of the sources of their income.

Individuals having permanent residence in the Republic of Armenia, are persons who are present within the territory of the Republic of Armenia more than 183 days in the calendar year;

b) individuals not having permanent residence in the Republic of Armenia, if they derive income from sources within the territory of the Republic of Armenia.For the purposes of taxation, the citizens of the Republic of Armenia, the citizens of foreign countries, as well as stateless persons are considered as individuals.

Article 2. Object of taxation

The following monetary (in drams officially in circulation in the Republic of Armenia, or in foreign currency) and in-kind income derived by the individuals is object of taxation:

-income derived from implementation of labor and civil legal agreements;
-royalties;
-income derived from business activity;
-income received from donations and assistance;
-income received from leasing of property;
-income received from share participation, securities and deposits of the citizens of the Republic of Armenia and stateless persons /Amendments of April 25 1996, effective from April 25, 1996/.

In-kind (non-monetary) income is taxed in accordance with the state fixed prices, and in the absence of such prices, in accordance with free (market) prices, according to the order established by the Government of the Republic of Armenia.

Income derived in foreign currency is recalculated in drams officially in circulation in the Republic of Armenia, proceeding from the exchange rate defined by the Central Bank of the Republic of Armenia as on the day of the deriving of such income.

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1. The following items of income are not included in the list of taxable income of individuals:

a) state social security and state social insurance allowances (except allowances provided for temporary loss of the ability to work, including care for sick children), monetary and in-kind assistance amounts rendered to individuals by social, including charity, religious as well as non-profit organizations provided by the list confirmed by the Government of the Republic of Armenia by consent of the Permanent Commission on Economy, Finance and Budget of the National Assembly of the Republic of Armenia /Amendments of November 9, 1995, effective from November 9, 1995/;

b) all types of pensions which are assigned according to the order established by the legislation of the Republic of Armenia, as well as supplementary pensions paid under conditions voluntary insurance of pensions;

c) amounts received as compensation for injuries, health troubles or death as the consequence of performance of labor responsibilities;

d) compensation amounts within the norms provided by the effective legislation of the Republic of Armenia, except for compensation amounts for unused vacations upon quitting the job;

e) payments given only once provided according to the order established by the legislation of the Republic of Armenia to members of died military personnel, as well as to disabled military personnel;

f) the value of in-kind procurement provided for according to the effective legislation of the Republic of Armenia, as well as monetary amounts paid against such in-kind procurement;

g) unemployment allowances provided by the legislation of the Republic of Armenia;

h) amounts of the material assistance provided with respect to natural disasters, other emergency situations, as well as other assistance amounts irrespective of their amounts, provided by the Government of the Republic of Armenia, local executive authorities, social insurance funds and foreign countries;

i) gains from state bonds and loans of the Republic of Armenia, and the amounts received against such bonds and loans;

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j) non-monetary gains of lottery drawings carried out according to the order and conditions established by the legislation of the Republic of Armenia;

k) interests and gains in the state obligations of the Republic of Armenia;

l) amounts received by individuals for the provision of blood and breast milk, and other types of donor activity;

m) alimony;

n) amounts received by individuals for sale of the property owned to them in virtue of the ownership right, except the amounts received from sale of property as a consequence of commercial activity;

o) income received from agricultural activity (production of agricultural production), as well as income received from non- agricultural activity if the percentage of the non-agricultural activity does not exceed 25% of the total income.

In case of agricultural activity the payers are liable to land taxation.

The provision indicated in this sub-paragraph is not applied to the owners of agricultural enterprises of industrial nature mentioned in the list confirmed by the Government of the Republic of Armenia by consent of the Permanent Commission on Economy, Finance and Budget of the National Assembly of the Republic of Armenia /Amendments of November 9, 1995, effective from November 9, 1995/;

p) insurance amounts received by individuals, except cases, when such amounts are paid from resources of enterprises, agencies and organizations;

q) monetary and in-kind income received from individuals as heritage and gift according to conditions provided by the legislation of the Republic of Armenia, except for royalties received by the successors (heirs) of the authors of scientific, literature, art pieces, as well as inventions, discoveries and industrial samples;

r) value amounts of the gifts (in-kind bonuses and services) in the limits of

five-times minimum monthly salary received from enterprises, institutions and organizations during the year;

s) total value of non-monetary prizes received in contests and competitions, and the value of monetary prizes received during the year in the limits of twenty four - times minimum monthly salary;

t) scholarships and stipends paid by the state to students and post-graduates of higher educational institutions, students of specialized secondary and vocational school , as well as attendants of religious institutions;

u) the difference between the nominal value of privatization certificates and their historical cost at the acquisition of privatization certificates by the individuals and their investment according to the order established by the legislation /Amendments of March 23, 1996, effective from March 23, 1996/.

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a) national heroes of the Republic of Armenia, heroes of the former USSR, persons awarded with 3 categories of the Glory Order;

b) persons disabled during World War II, or persons became disabled in consequence of wounds, injuries, contuses during the defense of the Republic of Armenia and the former USSR or during the performance of other military services, or diseases incurred, connected with situated on the front, disabled persons who was former partisans, as well as other disabled persons deemed according to the pension legislation equal to the above mentioned categories of military personnel.

c) participants in the World War I and World War II, as well as participants in military operations during the defense of the former USSR who served in the combat military units and headquarters, as well as former partisans;

d) persons disabled from birth and the first and the second groups disabled;

e) those persons who have become sick as a consequence of nuclear disasters, radioactive diseases, participated in the rehabilitation activities in the affected areas, been engaged in activities connected with the maintenance and exploitation of nuclear power stations during the liquidation of consequences of the disaster, or in other works.

3. Taxable income in each month is reduced in the amount of eight-times minimum monthly salary established by the legislation of the Republic of Armenia, if such income is received by the military personnel in the sense of titles, salaries, monetary compensations, other monetary remuneration and payments.

4. Taxable income in each month is reduced in the amount of six-times minimum monthly salary established by the legislation of the Republic of Armenia, if such income is received by the following persons:

a) parents and spouse of military personnel deceased in consequence of wounds, injuries, contuses during the defense of the Republic of Armenia and the former USSR, or deceased in consequence of disease connected with situated on the front, as well as of state officials who deceased performing their service;

b) military personnel who performed their responsibilities participating in military actions on the territory of foreign countries, as well as participants in such actions under the training musters according to the order established by the Law;

c) one of the parents (by their own choice), spouse, or guardian, taking care of the person disabled from birth and the first group disabled person requiring constant care and living together with them;

d) disabled persons of the third group having parents who requiring special care, or children who are of age.

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6. In case of the presence of right on the reduction of income simultaneously by several bases provided by paragraphs 2-5 of this Articles, only one is retained, i.e. the largest one.

7. Taxable income is reduced in the amount of the minimum monthly salary established by the legislation of the Republic of Armenia, for each child and dependant before 18 years-old; for each student and pupil before 24 years-old; for each dependant who do not have independent sources of income.

The mentioned order is preserved for children before 18 years-old, students and pupils before 24 years-old, as well as in case of death of children and dependants.

The reduction of taxable income is applied to both spouses, as well as to dependant with respect to income received at the location of principal employment.

The reduction of taxable income of individuals is become effective from the month when a child is born, or such individual becomes a dependant.

In case of decrease of the number of dependants, except for cases of death of dependants, or arising of independent sources of income, the privileges are not applied to dependant from the month, following the month where number of dependant is decreased, or an independent source of income is arisen.

For taxation purposes, persons without independent sources of income are considered as dependants.

Monthly taxable income of individuals receiving income against fulfillment of their job responsibilities in enterprises, institutions and organizations is reduced by these enterprises, institutions and organizations.

The reduction of the taxable income of the other individuals is carried out by tax bodies upon the end of the year during the calculation of annual amount of income tax, based on those months during which such income have been received.

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Article 4. Taxpayers and objects of taxation

In accordance with this Law, subject to taxation at the location of principal employment is monthly wage amount received by the individuals, as well as bonuses and any other remuneration and payments against fulfillment job responsibilities by them.

Article 5. Tax Rates

1. The following tax rates are applied to income listed in the Article 4 of this Law:

Amount of Monthly Taxable Income	Tax Rate
up to and including 10 times the minimum salary	12% of taxable amount
from the amount exceeding 10 times the minimum salary up to and including 20 times the minimum salary	120% of the minimum salary plus 18% of the amount exceeding 10 times the minimum salary
from the amount exceeding 20 times the minimum salary up to and including 40 times the minimum salary	300% of the minimum salary plus 25% of the amount exceeding 20 times the minimum salary
More than 40 times the minimum salary	800% of the minimum salary plus 30% of the amount exceeding 40 times the minimum salary

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3. In cases when, in accordance with the employment payment conditions the income has not been paid out in full, or not been paid out at all, and the final calculation is done after a season or other long-term period the total amount of wage received in the result of such calculation is distributed among the months when the employment payment against the fulfilled work has been done for taxation purposes.

Bonuses paid out in the end of the season or year are distributed in the same manner in the branches carrying seasonal implications for taxation purposes.

4. Amounts of income received by individuals from liquidated enterprises (including income from realization of the property of such enterprises) are taxed together with other income as of the month of calculation.

Article 6. Taxation of income received at the location of non-principal employment

1. In accordance with this Article the following income is subject to taxation:

a) monetary and in-kind income received by individuals from enterprises, institutions and organizations on the basis of civil and legal agreements;

b) amounts of material assistance and accruals to pensions and allowances paid by enterprises, institutions or organizations to individuals not employed by these enterprises, institutions or organizations, except cases established by this Law, as well as other legislative acts of the Republic of Armenia.

2. The tax on income indicated in this Article is levied in accordance with the tax rates established by Article 5 of this Law.

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1. The tax on income provided by Chapter II of this Law is calculated and paid to the budget by enterprises, institutions and organizations which paid out such income.

2. Enterprises, institutions and organizations which withdrawal the amount to be paid to individuals in banks are transfer the calculated tax amounts upon such withdrawal.

Enterprises, institutions and organizations that paid out wages and other payments at the expense of cash revenue of goods (work, services) are paid (transfer) the respective calculated tax amounts to the banks on the next day when such wages were paid out.

3. It is prohibited to carry out the payment of tax amounts calculated from wages, other remuneration and other income at the expense of resources of enterprises, institutions and organizations.

Article 8. Taxpayers and taxable objects

1. The following items are taxed in accordance with the procedure and rates provided by this Article:

a) authors of scientific, literature and art pieces, their legatees or heirs, on the basis of the royalty amounts, for the purposes of creation, publication or other usage of such pieces;

b) authors of translations of scientific, literature and art pieces, their legatees or heirs on the basis of the royalty amounts;

c) authors of findings, inventions and industrial samples, their legatees or heirs, on the basis of the royalty amounts;

d) individuals involved in editing and review of scientific, literary and art pieces, on the basis of the royalty amounts;

e) individuals who have been awarded prizes in contests and competitions, on the basis of the monetary prize awarded;

f) other individuals receiving royalties in accordance with the legislation of the Republic of Armenia on the basis of the royalty amounts.

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1. The income tax from double or multiple royalties paid to individuals indicated in the Article 8 of this Law (except for legatees or heirs of the authors), is levied at the following rates:

a) in case of presence of the location of principal employment:

Amount of the Annual Taxed Income	Tax Rates
up to 120 times the minimum salary	12% of the taxable amount
more than 120 times the minimum salary up to and including 240 times the minimum salary	1440% of the minimum salary plus 18% of the amount exceeding 120 times the minimum salary
from the amount exceeding 240 times the minimum salary up to and including 480 times the minimum salary	3600% of the minimum salary plus 25% of the amount exceeding 240 times the minimum salary
more than 480 times the minimum salary	9600% of the minimum salary plus 30% of the amount exceeding 480 times the minimum salary

b) in cases when an individuals does not have location of principal employment, the taxpayers indicated in the Article 8 of this Law pay the income tax amount equal to the tax amount, paid for the corresponding number of months, according to the rates established by the Article 5 of this Law.

Income tax is levied under rates defined by sub-paragraph

a) of the Article 1 of this Law, also from those persons who realize pieces of painting, sculpture and other types of arts created by them, through museums, organizations of Arts Foundations as well as exhibition-sales specially arranged by enterprises, institutions and organizations in proportion to income which has been received from such organizations and the management of exhibitions.

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Article 10. The procedure of calculation and payment of the tax

1. Income tax from individuals indicated in this Chapter of the Law during a year is calculated and tax withhold in accordance with the rates defined in sub-paragraph a) paragraph 1 of the Article 9 of this Law. For each following payment, a recalculation of the tax is performed, based on the total amount of payments executed at respective employment in the current year.

Upon the completion of a year, individuals (except for legatees or heirs of authors), are obligated to submit to the domicile tax body the tax return on actually received income of the past year no later than by March 1.

The return on actual income by individuals indicated in the Article 8 of this Law can be not submitted in following cases:

a) when remuneration has been executed only once in a calendar year, or several times from the same location of payment;

b) when the total amount of remuneration received during a year, does not exceed the threshold established by the Government of the Republic of Armenia by consent of the Permanent Commission on Economy, Finance and Budget of the National Assembly of the Republic of Armenia /Amendments of November 9, 1995, effective from November 9, 1995/.

2. In case of presence of the agreements on creation, publication, execution or the other usage of scientific, literature, and arts pieces, the advance remuneration upon these agreements and paid out at the final calculation, is summarized and distributed for taxation purposes among the number of the months during which the agreements are effective.

In case of absence of the respective agreements, the royalty received for work done during several years and exceeding 60 times the minimum salary, by an application of a taxpayer, is distributed on three years and taxed in the composition of total income received during the year in which income is taxed, less tax amounts previously paid.

A similar procedure is applied to amounts of remuneration, received by authors of findings, inventions and industrial samples during the first years of their usage.

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The tax is calculated on the basis of monthly average income in compliance with the tax rates defined in the Article 5 of this Law, and then multiplied by 12, if the only source of income is creative activity; or on the basis of annual income in compliance with the tax rates defined in sub-paragraph a) of paragraph 1 of the Article 9 of this Law, if such activity is not the only source of income.

4. Enterprises, institutions and organizations withdrawing the tax payments of individuals, no later than February 1 of each year, are obliged to submit the information in written form to the local tax bodies on amounts paid by such individuals during last year, mentioning their permanent addresses, as well as tax amounts withdrawn from this income.

Tax bodies located in the area of enterprises, institutions and organizations paying author’s royalties, forward that information to the tax bodies located in the area of the permanent residence of persons receiving the royalties, for the purpose of complete and proper accounting of taxes.

5. In cases, when in compliance with the tax returns on income (or calculations executed by a taxpayer) the additional tax amount is subject to pay, such amount is paid no later than March 1 of the following year.

If the necessity of the refund of excessive tax amounts paid in the course of a year from the budget is arisen, then, on the basis of the respective conclusions of the tax bodies, such amounts must be refunded from the budget no later than within the month after the day the respective tax bodies are advised on such amounts.

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Article 11. Taxpayers

The following persons are paid income tax in conformity with the procedure and rates defined in this chapter of Law:

a) individual entrepreneurs;
b) owners of individual (family) enterprises;
c) individuals who are members of an economic company;
d) persons who receive income that are not mentioned in the Articles 4, 6, and 8 of this Law.

Article 12. The taxable object and calculation of the taxable income

1. In accordance with the procedure established by this Chapter, the income of individuals derived from business activity, and income derived from other sources (not stipulated in the Articles 4, 6, and 8 of this Law) which is not related to the execution of employment responsibilities. Moreover, income derived during the definition of the taxable income is reduced (except reductions provided for by the Article 3 of this Law) on the expenses connected to generation of such income, and which is calculated in accordance with the procedure established by the legislation of the Republic of Armenia, based on general norms mentioned in the decision "On composition of expenses that included in the cost of production (work, services) in the enterprises of the Republic of Armenia" confirmed by the Government of the Republic of Armenia.

If such expenses are not supported by respective documents, or are not supported in full, such expenses are calculated in accordance with the norms established by the Government of the Republic of Armenia.

2. At calculation of expenses the peculiarities of the composition of expenses connected with production and realization of products (work, services) in the separate are taken into consideration when calculating expenses, and such peculiarities shall be defined in compliance with the procedure established by the Government of the Republic of Armenia.

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The following rates are established for the taxable income of individuals indicated in this Chapter of Law:

a) rates defined in sub-paragraph a) of paragraph 1 of the Article 9 of this Law, if location of principal employment is present;
b) rates defined in the Article 5 of this Law, if location of principal employment is absent.

Article 14. The procedure of calculation and payment of the tax

1. The tax amount is calculated from the total annual income received by the taxpayers indicated in this Chapter, irrespective of the types of such income.

Calculation and payment of the tax amount is executed by taxpayers, and, according to the established procedure, is reflected in the tax returns submitted to tax bodies at place of domicile. Moreover, in cases when, in compliance with this Law, taxation of a certain part of such income is performed, in accordance with the established procedure, by the employer, other enterprises, institutions, organizations at the location of tax payment, the tax amounts paid during the respective year are taken into consideration at the final calculation.

Tax return on the annual income may not be submitted by individuals, who receive income exclusively from share participation, securities, and deposits from one enterprise, institution, organization, as well as in cases, when exclusively above described income is received in the course of a year and the total amount of which does not exceed the threshold established by the Government of the Republic of Armenia, by consent of the Permanent Commission on Economy, Finance and Budget of the National Assembly of the Republic of Armenia /Amendments of November 9, 1995, effective from November 9, 1995/.

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a) taxpayers implementing business activity are, during of a given year, pay quarterly, as advance payments, 25% of the tax amount calculated on the basis of actual income of the preceding year; the taxpayers who perform payments for the first time pay 25% of the annual tax amount calculated on the basis of expected income during the given year.

The tax advance amount is paid to the budget in equal installments in the following terms, i.e. before March 15, May 15, August 15, and November 15.

To this end, before the execution of final calculation of actual income tax amount received in the previous year, the taxpayer independently calculates tax advance payment to be executed on March 15, based on financial data of the current year.During the execution of tax advance payment on May 15, which succeeds the fact of identification of actual income tax amount, correction of tax advance payment amounts as accrual aggregate from the beginning of a given year are performed, in according with the rates defined in this paragraph.

In case of increase or reduction of income of a taxpayer in the course of a year, recalculation of tax amounts may be performed taking into account the maturity of tax payment;

b) upon completion of the year, annual tax amount is calculated on the basis of actual income received. The difference between such amount and amounts which have been paid in the course of the year, is subject to additional payment or, vice versa, return no later than May 1 of the following year, and within 15 days in case of removal of the source of income deriving from business activity.

3. Taxation of taxpayers who indicated in the Article 11 of this Law is implemented:

a) on the basis of tax returns of taxpayers on actual income as a result of the given year, which submitted before March 1 of the following year.

In case of the arising of a source of income deriving from business activity in the course of a given year, individuals submit a tax return within a five day period after one month from arising of a source of income, in which indicated the amount of actual income in the course of the first month, as well as the amount of expected income by the end of the current year. In case of termination of the source of income, the tax return is submitted within five days after such termination;

b) on the basis of audit conclusions, investigations, findings materials, data on taxpayers, as well as data provided by the legislation of the Republic of Armenia.

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5. Distribution of income amongst persons carrying out economic activity on the basis of the right of joint ownership (family enterprise) is executed by consent of such persons, that mentioned in the tax return submitted to the tax body.

6. The income tax of individuals which signed labour contract with employer is paid to the budget in accordance with the rates defined in the Article 5 of this Law, and such payment performed by employer when paying the contract to such persons.

7. The income tax of individuals from share participation, securities, and deposits (dividend, share, interest) are calculated and withdrawn immediately at the location where the remuneration is paid out, in accordance with the rates defined in sub-paragraph a) of paragraph 1 of the Article 9 of this Law. During each following payment, recalculation of tax is performed based on total payment amount executed during the year at the location of payment.

To this end, the paid tax amount is transferred to the budget on the working day following the day when payment of such income was executed.

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Article 15. Definition of taxable income

1. Taxable income of foreign citizens and stateless persons (hereinafter foreign individuals), is defined in accordance with the same procedure that applies to the taxable income of the citizens of the Republic of Armenia.

2. Amounts that subject to transfer by employer of foreign individuals to the Social Insurance Fund, Pension and Employment Fund are not included in the composition of taxable income.

Article 16. Tax rates

1. Income of foreign individuals is subject to taxation by the rates provided by this Law for the taxation of similar income.

2. Income of owners of individual enterprises is subject to taxation by the rates provided by the Article 9 of this Law.

Article 17. Procedure of calculation and payment of the tax

1. Foreign individuals who have domicile in the Republic of Armenia and receiving income from sources outside the Republic of Armenia are submit a tax return in accordance with the procedure defined by this Law.

Tax return on actually received income is submitted before March 1 of the year following the reporting year, to the tax body at the location of carrying out of activity or by the residing address of foreign individuals.

Foreign individual having domicile in the Republic of Armenia in accordance with this Law, submits the tax return on expected income in the course of the current year within one month from arrival to the Republic of Armenia.

In case of termination of activity of foreign individuals in the course of the current year, and departure from the Republic of Armenia the tax return on actually received income must be submitted at least one month before departure.

2. The tax amount of foreign individuals income taxed on the basis of tax return is calculated by the tax body at the location of carrying out of the activity or by the residing address of the taxpayer in the Republic of Armenia. The taxation document sent by the tax body to the taxpayer is payment notification.

Advance tax amount is calculated to the taxpayer on the basis of tax return on expected income, and such advance tax amount is subject to pay during the year at 75% of tax obligations of such taxpayer. Recalculation of the tax amount is executed on the basis of the data on actual income.

The tax amount payable in the course of the current year is executed in three equal parts - before May 15, August 15, and November 15. Additional payment at recalculation of tax amount on reporting year is carrying out within one month after the writing out of the payment notification. Excessive tax amount paid by a taxpayer by his request, is returned to him, or credited against future tax payments to be executed by such taxpayer.

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4. The following income of foreign individuals isn't to subject to taxation:

a) all income of the head of diplomatic missions of foreign countries, as well as the members of diplomatic personnel, having diplomatic and consular ranks, members of their families who live jointly with them and who are not citizens of the Republic of Armenia, except for income from various sources in the Republic of Armenia and not related to diplomatic and consular services,

b) all income of administrative and technical personnel of diplomatic missions, as well as members of their families who live jointly with them and who are not citizens of the Republic of Armenia, or do not permanently reside in the Republic of Armenia, except for income received from various sources in the Republic of Armenia and not related to diplomatic and consular services,

c) all income received by the service personnel of diplomatic missions, who are not citizens of the Republic of Armenia, or do not permanently reside in the Republic of Armenia;

d) income of the staff of international organizations in accordance with the charters thereof.

5. Levying income tax on foreign individuals may be terminated or limited on a bilateral basis, in case when the respective foreign country undertakes identical measures to citizens of the Republic of Armenia, that must be confirmed by the tax bodies of such foreign country.

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Article 18. Procedure of taxation

Taxation of income (except for income indicated in Chapter II, as well as in paragraph 6 of the Article 14 of this Law) received by persons who are not domiciled in the Republic of Armenia from sources within the Republic of Armenia is executed at 20% tax rate, unless otherwise provided by the treaties of the Republic of Armenia.

Enterprises, institutions, organizations, as well as individuals registered according to the procedure established by the legislation of the Republic of Armenia to carry out business activity advise of the local tax bodies on such income and amounts of withdrawn tax .

Article 19. The procedure of submission a tax return on annual income

1. Individuals paying taxes according to the procedure established by this Law are obliged to submit the tax return on their annual income.

2. The form of tax return and procedure of tax return of annual income are established by the Government of the Republic of Armenia.

3. Tax return is not submitted in the following cases:

a) when the income of individuals is received exclusively at the location of principal employment;

b) when individuals receive author royalty exclusively in accordance with the conditions indicated in the paragraph 1 of the Article 10 of this Law;

c) when individuals receive income as dividends, shares, interests exclusively in accordance with the conditions indicated in paragraph 1 of the Article 14 of this Law;

d) when individuals receive income exclusively as of author royalties ( in accordance with the conditions indicated in paragraph 1 of the Article 10 of this Law), as dividends, shares, interests (in accordance with the conditions indicated in paragraph 1 of the Article 14 of this Law) as well as at the location of principal employment.

Non-submission of the tax return not exempts the taxpayers from the performance of tax obligations stipulated in this Law and tax obligations stipulated in the other legislative acts of the Republic of Armenia.

4. Income of under age persons declared by their parents (tutor) and such income is included in the composition of income of the parents.

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Individuals who submitted the tax return are obliged to carry on accounting of income derived as a result of their activity, as well as of expenses connected with receiving of such income in accordance with the procedure of tax return indicated in the Article 19 of this Law.

Article 21. Avoidance of double taxation

The amount of income of taxpayers in the Republic of Armenia received out of the Republic of Armenia is included in the total amount of income subject to taxation in the Republic of Armenia and taken into account at the calculation of the amount of tax.

The income tax amount levied in the Republic of Armenia is reduced at the tax amount levied from the taxpayers of the Republic of Armenia in foreign countries according to the legislation of those foreign countries. To this end, the reduced amounts can not exceed the tax amount, payable in the Republic of Armenia from the income received in foreign countries.

Article 22. Treaties

If treaties of the Republic of Armenia establish the rules differ from the rules included in this Law, then the rules of the treaties are applied.

The mentioned rules are effective after ratification by the Supreme Council of the Republic of Armenia of the above- mentioned treaties.

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Article 23. Concluding provisions

1. Taxpayers bear responsibility for the violation of this Law according to the legislation of the Republic of Armenia.

2. Issues connected with the rights and obligations of taxpayers, carrying out of the control over tax payment, as well as over the return of income tax amounts paid by mistake to the budget are regulated in accordance with the procedure established by the Law of the Republic of Armenia "On Taxes and Duties in the Republic of Armenia".

3. The Government of the Republic of Armenia by consent of the Permanent Commission on Economy, Finance and Budget of the National Assembly of the Republic of Armenia, can establish fixed payments on income tax other rates and limits, other procedure of their calculation and payment as well as privileges for individual payers or group of payers /Amendments of November 9, 1995, effective from November 9, 1995/.

4. The instructions for implementation of this Law are worked out and published by the State Tax Inspectorate of the Republic of Armenia in agreement with the Ministry of Finance and Ministry of Justice of the Republic of Armenia.

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