Editing Economy of Armenia (section)

==Government revenues and taxation==
{{See also|State Revenue Committee (Armenia)}}

===Government revenues===
In August 2019 [[Moody's Investors Service]] upgraded Armenia to Ba3 rating with stable outlook.<ref>{{Cite web|url=https://www.moodys.com/research/Moodys-upgrades-Armenias-rating-to-Ba3-changes-outlook-to-stable--PR_404870|title=Moody's upgrades Armenia's rating to Ba3; changes outlook to stable from positive|date=2019-08-27|website=Moodys.com|language=en|access-date=2019-10-29|archive-date=2019-10-29|archive-url=https://web.archive.org/web/20191029120749/https://www.moodys.com/research/Moodys-upgrades-Armenias-rating-to-Ba3-changes-outlook-to-stable--PR_404870|url-status=live}}</ref>

According to the National Statistical Service, Armenia's government debt stood at AMD 3.1 trillion (about $6,4 billion, including $5,1 billion of external debt) as of November 30, 2017. Armenia's debt-to-GDP ratio will drop by 1% in 2018 according to finance minister.<ref>{{Cite news|url=http://www.panarmenian.net/eng/news/250628/|title=Armenia debt-to-GDP ratio to drop 1% in 2018, minister says|work=PanARMENIAN.Net|access-date=2018-03-22|archive-date=2018-03-23|archive-url=https://web.archive.org/web/20180323030601/http://www.panarmenian.net/eng/news/250628/|url-status=live}}</ref>

In Armenia's external debt ($5.5 billion as of January 1, 2018), the arrears for multi-country credit programs dominate – 66.2% or $3.6 billion, followed by debt on bilateral loan programs - 17.5% or $958.9 million and investments of non-residents in Armenian Eurobonds – 15,4% or $844.9 million.<ref>{{Cite news|url=http://finport.am/full_news.php?id=33971&lang=3|title=Armenia's external debt is mainly concentrated on loans of international financial organizations {{!}} Finport.am|access-date=2018-03-22|language=en|archive-date=2021-05-07|archive-url=https://web.archive.org/web/20210507124755/https://finport.am/full_news.php?id=33971&lang=3|url-status=live}}</ref>

For the whole Armenian economy and international commerce, 2020 was a year of decline. In a variety of areas Armenian commodities are being exported and imported at a lower rate. According to the Armenian Statistical Committee, Armenia exported goods worth $2.544 billion in 2020, a fall of 3.9 percent from 2019. Armenia imported items worth 4.559 billion dollars in 2020, down 17.7% from the previous year.The volume of Armenia's international trade has varied throughout the previous 10 years.<ref>{{Cite web|title=2020 - Armenia's Top 10 Foreign Trade Partners|url=https://hetq.am/en/article/128368|access-date=2021-12-11|website=Hetq.am|date=10 March 2021 |language=en|archive-date=2021-12-11|archive-url=https://web.archive.org/web/20211211155418/https://hetq.am/en/article/128368|url-status=live}}</ref>

===Taxation===
{{main|Taxation in Armenia}}
{{See also|Armenian Tax Service}}

==== Employee income tax ====
From January 1, 2020, Armenia will switch to a flat income taxation system, which, regardless of the amount will tax wages at 23%. Moreover, until 2023 the taxation rate will gradually decrease from 23% to 20%.<ref name=":11">{{Cite web|url=https://finport.am/full_news.php?id=38733&lang=3|title=Armenian parliament adopted amendments to Tax Code: changes are aimed at improving the competitiveness of the national economy {{!}} Finport.am|website=finport.am|language=en|access-date=2019-10-29|archive-date=2021-04-29|archive-url=https://web.archive.org/web/20210429084228/https://finport.am/full_news.php?id=38733&lang=3|url-status=live}}</ref>

==== Corporate income tax ====
The reform adopted in June 2019 aims to boost medium-term economic activity and to increase tax compliance. Among other measures, the corporate income tax was reduced by two percentage points to 18.0 per cent and the tax on dividends for non-resident organisations halved to 5.0 per cent.<ref name=":13" />

====Special taxation for small business====
From January 1, 2020, the republic will abandon two alternative tax systems - self-employed and family entrepreneurship. They will be replaced by micro-entrepreneurship with a non-taxable threshold of up to 24 million drams. Business entities that carry out specialized activities, in particular, accounting, advocacy, and consulting will not be considered as micro-business entities. Micro business will be exempted from all types of taxes other than income tax, which will be 5 thousand drams per employee.<ref name=":11" />

====Value-added tax====
Over half of the tax revenues in January–August 2008 were generated from [[value-added tax]]es (VAT) of 20%. By comparison, corporate profit tax generated less than 16 percent of the revenues.<ref name="ArmLib-Oct14-2008-Tax">[http://www.armenialiberty.org/armeniareport/report/en/2008/10/A7925A64-775F-40AF-99A4-8B22C65C89C8.ASP "Government Keeps Up Strong Growth In Tax Revenues"] {{Webarchive|url=https://web.archive.org/web/20231109221932/https://www.azatutyun.am/a/1597777.html |date=2023-11-09 }}, Armenia Liberty ([[RFE/RL]]), October 14, 2008.</ref> This suggests that tax collection in Armenia is improving at the expense of ordinary citizens, rather than wealthy citizens (who have been the main beneficiaries of Armenia's double-digit economic growth in recent years).<ref name="ArmLib-Oct14-2008-Tax" />

VAT (Value Added Tax): In Armenia, VAT-paying individuals subtract the VAT paid on their inputs from the VAT levied on their sales and account to the tax authorities for the difference. The standard rate of VAT on domestic sales of goods and services, as well as imports importation, is 20%. Exports of products and services are not taxed.<ref>{{Cite web|title=General Taxation Overview Armenia - ILex Law Firm Armenia|url=https://www.ilex.am/en/2-ilex/189-general-taxation-overview-armenia.html|access-date=2021-12-11|website=www.ilex.am|archive-date=2021-12-11|archive-url=https://web.archive.org/web/20211211221017/https://www.ilex.am/en/2-ilex/189-general-taxation-overview-armenia.html|url-status=live}}</ref>