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Armenia to Increase Individual Income Tax Rate on Interest Income from Loans Granted to Own Companies

|Proposed Changes|Armenia
Armenia

Armenia's State Revenue Committee has proposed an increase in the individual income tax rate to 21% on interest income derived by individuals from loans granted to self-owned companies. The increased rate is meant to dissuade individuals from engaging in tax schemes that involve the use of loans to reduce taxable company income, which is subject to an 18% corporate tax rate, while taking advantage of the current individual income tax rate of 10% on interest income from a loan.

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