State support to legal entities and individual entrepreneurs operating in the IT sector

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

According to the resolution, one-time state support will be provided to those organizations and individual entrepreneurs of the industry that simultaneously meet the following conditions:

• have been VAT payers during the base period specified in the resolution (June-October 2022),
• did not reduce the payroll fund paid to employees in the base period by more than 20 percent,
• the volume of services exported abroad in the base period was at least 70 percent of the turnover,
• as of the day preceding the date of submission of the application, they do not have tax-controlled obligations on income exceeding AMD 100,000, except for income tax obligations, which must be met in full.

The purpose of the resolution is to enable organizations in the sector to transform the company’s business model, adapt to current conditions and withstand the global complexities of the IT sector.

According to preliminary estimates, the amount of state support provided is about 10 billion drams.