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Introduction of the New Tax Code of the RA, provisions that come into force starting 2017

The RA parliament adopted the new Tax Code of the RA on 4 October 2016. The new Code will come into force in full starting 1 January 2018; however, there are some provisions that come into force starting 2017. Below we highlight those parts of the Code that come into force in 2017:

The Agreement between the Federal Republic of Germany and the Republic of Armenia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital was signed on June 29, 2016th.  It requires its entry into force is subject to approval of the legislative bodies of both Contracting States.

An important prerequisite for ensuring the effectiveness of NGOs' activities is their financial sustainability. In this regard, an important tool has been provided for the NGOs- it’s the right to engage in entrepreneurial activities in accordance with the objectives set out in the NGO Charter, which wasn’t envisaged by the applicable law before. Previously NGOs could engage in entrepreneurial activity only by creating a commercial organization or becoming a participant in such a company. Meanwhile, in the Council of Europe member states, except for the Republic of Belarus, Republic of Armenia was the only country where non-profit organizations haden’t had the right to engage in entrepreneurial activity. Such a regulation exists in the laws of the United States and some other developed countries.
Further the NGO-s may, in accordance with its objectives and business activities, carry out entrepreneurial activity as well as establish a commercial organization or become its participant in the manner prescribed by law in the Republic of Armenia.  
The name of an NGO that carries out entrepreneurial activity is its brand name as well. The state registration of the NGO is carried out in 2 days (previously 21 days), if it uses samples available.

The amendments are adopted on 16.12.2016, signed by the president on 16.01.2017.

An Addendum and amendments to the Law "On State Registration of Legal Entities, State Registration of Separated Divisions of Legal Entities, Institutions and Private Entrepreneurs".



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