89 Armenian tech startups granted tax privileges

The Ministry of HighTech Industries has granted tax privilege certificates to 89 Armenian startup companies specializing in technologies.

The decision to offer the ventures privileged terms to increase their competitive advantages was made based on the outcomes of recent four sessions. A total of 130 companies had initially submitted bids to obtain the certificate, the Ministry’s press service reports.

The state assistance program covers a broad framework of activities, including  software development, counselling in the field of computer technologies, data procession, systems management, information distribution on networks, operation of web portals, as well as educational and research programs.

In a speech at the meeting, CEO of FOB TESTING SERVICE Aramayis Hovhnanisyan highly praised the initiative, considering the reduced income and profit taxes a good opportunity for startups enabling them to enter big markets will little sums and gain a firm foothold. “This is a kind of opportunity to assist in the formation of new firms to translate a new brainchild into a new product. Over 50% of startup companies will be able to enter the big market. But they will not be restricted with that, as all will seek to give up the licenses to promote their enlargement,” he noted.

The selection board offered time to another company, Digitech Vision, to submit additional documents and a justification to assert that their activities are in line with the norms and criteria prescribed the  law “On State Assistance to the IT Sector”.

The records submitted received the commission’s approval.

The geography of startups which have applied for tax privileges in Armenia ranges from the United States to countries on the European continent (United States, Holland, Czech Republic, France, Austria and Finland), as well as Georgia and Russia. An estimated 20% of the applicants are Diaspora compatriots.

Under recently enacted legislative changes, startups are offered privileges with the interest rate of 0% in case of the income tax and 10% - in case of the profit tax.