Until February 1, legal entities and individual entrepreneurs operating in the IT sector can apply for one-time state support

At the sitting on December 1, the Government of the Republic of Armenia approved the draft resolution of the Government of the RA “On Approval of the Procedure for Providing State Support to Commercial Organizations and Individual Entrepreneurs Operating in the Field of Information Technology”.

The purpose of the support is to mitigate losses incurred by commercial organizations in the IT sector and individual entrepreneurs due to the devaluation of the US dollar and the euro, while maintaining existing jobs.

According to the decision, one-time state support will be provided for the period from June 1, 2022 to October 1, 2022 (base period) to those organizations and individual entrepreneurs in the industry that simultaneously meet the following conditions:

• in the base period were considered payers of value added tax and accounted for 80 percent or more of income (sales turnover) from all types of activities included in groups J58.2, J62.01, J62.02, J62.03, J63 .11, J63.12 of the classification of types of economic activity, approved by paragraph 1 of the order of the Minister of Economy of the Republic of Armenia No. 874-N dated September 19, 2013.
• the volume of services exported abroad in the base period amounted to at least 70 percent of the sales turnover of the base period and the amount of wages calculated for each month and equivalent payments to employees who received income in income tax calculations for the previous month of payment is at least 80% of the income tax report fund issued in May, for filing an application as of the day preceding the date, they have no income obligations controlled by the tax authority exceeding AMD 100,000, except for tax obligations on profit, which must be met in full.

The deadline for applications is February 1, 2023.