INFORMATION FOR BUSINESSMEN

The integrated with the market OF THE USSR economy, which was being been based on developed industry, was developed for the almost 70 years until the establishment of independence in 1991, in the years of Armenian Soviet socialist republic, in Armenia. After 1991, in view of a number of known reasons (reduction of traditional markets in connection with the collapse of the USSR, the introduction of market economic system and others), occurred the sharp decrease in the economy of the country. Attempting to stabilize position in the economy and to ensure its restoration and further development, the government of young republic developed the program of macroeconomic stabilization and structural reforms, the received support of foreign donors. Structural changes in the bank and financial policy were required for the passage to the market economy. By adoption by the parliament of laws "about the central bank of the republic of Armenia" and "about the banks and the bank activity" (April 1993 g.) was regulirovana the activity of central bank and business banks, the bases of the independent banking system were created. With the disintegration of the financial markets for the former USSR the need for the independent financial- credit policy was strengthened. Major step in this direction was introduction during November 1993 of national currency - drama. Exchange course drama with respect to the US dollar was established by 14,3. During March 1994 it reached 230 dramas, toward the end of the year - 400 dramas. Subsequently the course drama remained relatively stable, koleblyas' in the interval of 400-410 dramas for the US dollar in 1995, 410-450 - in 1996, 450-500 - in 1997 and about 500 - in 1998 (May). The system of taxation is regulated in accordance with the law "about the taxes and the duties in the republic of Armenia". The following taxes and the duties are established: tax to the profit - from the profit of legal persons; the income tax - from the income of the physical persons; excise tax - from the realization of separate is specific goods; tax to the gross value addition - from the revolution of the realization of goods and services; the social tax - from the wage and the incomes, equated to the wage; Land tax - from the owner of the earth; tax to the profession - for the development of the specific professional activity; tax to the property - to the specific forms of property; nature-conservation tax - for the use of natural resources and the environmental pollution; the state duties - for juridical and other services; customs duties - for export and merchandise import; other taxes and duty. Enterprises with the foreign investments and local enterprises be subject to taxation on the identical rates, but on the tax to the profit privileges are given to foreign investors. Tax to the profit is collected from the profits of enterprises, which have status of legal person. They are established 12, 18, 25 and 30 - the interest rates of tax to the profit - in the dependence on the annual sum of taxable profit (NP), which is calculated in a following manner: NP == the gross income - tax to the gross value addition (NDS) - excise ravine - expenditure and other taxes. The newly created enterprises including foreign, are freed from the payment of tax to the profit in the first two following after the the gosregistratsiyey years. The sum of tax in the profit of enterprises with the foreign investments decreases, beginning from the third up to the tenth year after gosregistratsii. With the liquidation of enterprise to the expiration of three year period the sum of tax to the profit is calculated in the overall size during this period. With the liquidation of enterprise to the completion of five-year period, the sum of tax is calculated in the overall size during entire period of its activity. The income tax collects from the incomes of the physical persons. The object of taxation appear the incomes, obtained from the performance of working and civil- lawful agreements, owner's activities, deliveries of property into the lease, shared participations, on securities, to contributions author's rewards, incomes, obtained by way of donation and aid and others. The rates of monthly tax are established 15, 25 and 30 % - depending on sizes of income the income tax, collected in Armenia, decreases by the size of the sum of the tax, vyplachennogo in other country. Foreign citizens, who have a constant residence in Armenia (more than 183 days during the calendar year), be subject to taxation on the same rates, as the citizens of Armenia. Excise tax - indirect tax, entering the price of goods. Pay enterprises, establishments, organizations citizens, who let out and who realize fault- vodka, tobacco production, jewelry articles, adornments (bijouterie), furs, fur articles and clothing made of the natural skin, the tire cover, crystal and china articles, carpets of manual work, and also importing such goods into the republic of Armenia made of the states, which are not the members of the former USSR. Tax to the gross value addition (NDS). Gross value addition is the difference between the cost of the realized goods, executed works, shown services and otnosimoy in the production costs and rotation with the cost of material resources, fuel, works and services, basic means and intangible assets. Rate NDS is equal to 20 %. from NDS they are freed: financial mediation; the realization of medicines and preparations of ortopedno- orthopaedic equipment; the construction work, carried out by foreign and international public and religious organizations and due to the means of the communities of Armenian diaspore; the operations, connected with the rotation of currency, money, bank tickets, securities (besides broker and others intermediary); the realization of agricultural production; operation on the insurance and perestrakhovaniyu, and also connected with the money contributions, current business, current and other accounts; school textbooks, notebook and their sale; the operations, connected with obtaining and delivering of patents, of copyrights and licenses; the financed by state scientific research and connected with it activity; and a number of others is specific goods, works and services. The prerequisites for the introduction of the liberal policy of foreign trade were created with the stabilization of the economy of the country at the end of 1994. Limitations existing in this sphere were liquidated, duties for the export were abolished, the low level of imported tariff rates was established. In Armenia The harmonized System Of tariff Classification Acts. Customs tariffs are advalornymi and are collected on prices CIF. Tariff rates -0 or 10 %. on rate 10 % duty are collected in essence for the consumer goods and the objects of luxury. Major portion of the import is freed from the licenses, the quotas and the prohibitions. For the purpose of the guarantee of safety, health and protection of environment there are limitations on the licensing of the import of weapon and components for its production, explosive and radioactive materials, poisons, narcotics, pornographical materials, strong psychotropic and narcotic drugs and adaptations. To the import of medicine is necessary the permission of the Ministry of Public Health, to the import of agricultural chemicals - Ministry of Agriculture. As the member of world customs organization Armenia uses for the customs estimation the method, based on the provisions of the agreement GATT 1994. Customs duties from the import and the export compose 0,3 %. they are not collected collections from the temporary import, the deliveries within the framework of government credits, kliringovykh operations, conducted on the basis of international agreement, the import of raw material for the building on the basis of bilateral agreements with the countries - the members OF THE CIS, bought through the state budget goods, and humanitarian assistance. Removal by citizens from the territory of the republic of Armenia goods and other objects it is freed from the customs duties. Citizens can without the payment of customs duties import to the customs territory of the republic of Armenia the objects of personal use, and also goods and other objects by the total cost, equivalent to 500 US dollars, except the alcoholic beverages, limited to 2 liters, and the tobacco articles, limited to 50 bundles. To the exceeding the sizes outlined above object or summary part of the imported from the side citizens of the goods and other objects pay customs duties in accordance with the established by law standards. Citizens arrived into the republic of Armenia to the permanent residence can without the payment of customs duties import their property. The citizens of the republic of Armenia can without the payment of customs duties import their property, obtained abroad by the inheritance, into the republic of Armenia. By citizens the sums to 10 thousand US dollars of any documents do not be required for the removal from the country. The import of currency is unconfined. The parliament of the republic of Armenia accepted a number of the laws, reuliruyushchikh the development of particular sector and creating the based on the market relations business-like atmosphere. Law about the enterprises and the owner's activity establishes the lawful forms of the enterprises, which can be created by the local and foreign persons and companies. In the particular sector (besides the particular owners, for whom the basis of a constant owner's activity it is the certification about the registration of physical face) the following forms of the enterprises (including from the side of foreign citizens - both in the form of joint enterprises and completely belonging to foreign owner) can be created: Individual or family enterprise: it does not have status of legal person, it acts on the basis of the labor of its owners, it can have hired workers. Production cooperative: it is based as legal person, it is based on collective property and working participation of its terms. It can draw hired workers. Joint-stock company: it is based as legal person, the responsibility of each participant is limited to the par value of his actions. Closed type society can be the property of one owner. Society with the limited responsibility: it is based as legal person, it is created on the base of specific basic capital. The responsibility of its members before the society is limited to the par value of the portion belonging to them. Organization, which does not pursue the purpose of obtaining the profit: has status of legal person, does not have the right to obtain profit from its activity. Incomes are expended in accordance with the regulations. Daughterly enterprise: it is based as legal person. Right to the possession of the property of this enterprise belongs to founder. Individual branches (departments): they do not have status of legal person, are based as territorially and functionally isolated branches, departments and representations of local or foreign organization and companies. The process of privatization and razgosudarstvleniya of state unitary enteprises and objects of the incomplete building is achieved since 1991. The corresponding law gives foreigners the right of participation in the privatizatsionnykh processes. As of on January 1998 in Armenia are privatizirovany 65 % average and large enterprises even 90 % small objects. In 1991, as a result of the privatization of the earth system of kolkhozes and state farms existing thus far was liquidated. Already toward the end of 1994 there was rozdano to new owners 69 % the arable earth, 79,6 % plantations of long-standing cultivations even 44,1 % hay mowings. 20 % the earth remain under the control of state for further distribution. To particular owners were sold 350 thousand head of large livestock. Were privatizirovano also 30 % the remained property (real estate, transport, machines and oborudovaniye).Zakonom about the foreign investments were determined lawful standards, guarantee and stimuli for the foreign investors. By this law are regulated also the conditions of investments from the side of those citizens of Armenia, who constantly live beyond the limits of the country. Law establishes the following stimuli and guarantees for the foreign investors: - lawful regime for the foreign investors and its realization cannot be less favorable than the same regime for the local persons; - in the case of changing the legislation, which acts at the moment of the realization of investments, to foreign investors is given five-year privilege period; - investors have right to the removal from the country of profit, their property and something different by the legal means of the obtained means; - investments are freed from the customs duties to the property, imported for the use in their own production; - and others.