ArmInfo. Resident citizens of Armenia filing a comprehensive income tax return will be able to take advantage of social credits-an opportunity to reimburse social expenses from their income tax-only after submitting an annual income tax return (declaration) certified with an electronic signature to the tax authority. The system adjustments will not end there. The decision was approved at a government meeting on February 12.
Presenting the draft decision, RA Finance Minister Vahe Hovhannisyan recalled that the Law of the Republic of Armenia "On Amendments and Additions to the Tax Code of the Republic of Armenia," adopted by the National Assembly on October 24, 2025, significantly simplified the income declaration system for individuals. Specifically, it stipulates that the tax authority must pre-fill the declaration based on the information it has. Declarants have the opportunity to amend their declaration and submit it to the tax authority in the prescribed manner and within the established deadline. If the declaration, previously completed by the tax authority, is not subject to amendment by the declarant within the prescribed period, it is considered submitted to the tax authority in accordance with the procedure established by the Tax Code on the date of the declaration's filing deadline. Moreover, social expenses are reimbursed to an individual if they have submitted to the tax authority an annual income tax calculation (declaration) certified with an electronic signature in accordance with the procedure established by law.
"The draft proposes to establish that the right to reimbursement of social expenses arises if an individual has submitted to the tax authority an annual income tax calculation (declaration) certified with an electronic signature in accordance with the procedure established by law," the head of the Ministry of Finance explained.
In addition, the Ministry of Finance will soon introduce a new bill defining the list of undeclared and deductible income, as well as establishing a tax-exempt threshold. As a reminder, the head of the State Revenue Committee (SRC) has issued an order for 2024 stipulating that transactions under 300,000 drams, which are considered deductible income (income received as gifts, gratuitous donations, loans, or one-time income from the alienation of property), are not subject to declaration as part of the general income declaration process.
Prime Minister Nikol Pashinyan, in turn, noted that last year, more than 70% of declarants accepted the declaration generated by the SRC's electronic system. However, since receiving reimbursement for social expenses requires certifying the declaration with an electronic signature and completing the corresponding application, the need for document verification remains. "In 2025, 76,537 citizens who filed the 2024 General Income Declaration received a refund of 6 billion 200 million drams in social credits. The average amount of credit refunded per person is 81,000 drams," he noted.
Furthermore, Pashinyan noted, since the reimbursement of social expenses is aimed at implementing the government's social policy, in order to make it more targeted, it is possible that at some point, citizens with higher incomes will be told that "it is not so logical for you to repay social credits of 100,000 drams." "At some point, social credits for a certain group of the population will become zero, and for others, 150,000-200,000 drams," Pashinyan clarified.
Touching on future changes, State Revenue Committee Chairman Eduard Akopyan noted that the current phase addresses the issue of obtaining bank information regarding citizens' income. Currently, if a citizen receives income other than their salary, they are required to log in to the system and provide it. In the case of bank deposits, they can enter this information in their personal account on the State Revenue Committee portal or authorize the tax service to obtain it from banks. The State Revenue Committee will also regulate the completion and verification of citizens' income by other individuals with a power of attorney, as well as the receipt of income data for socially vulnerable groups and pensioners from the Ministry of Social Labor.
As a reminder, the implementation of the Universal Income Declaration system for all resident citizens of the republic began in 2023. The process was organized in three stages, with the number of individuals required to submit the declaration expanding each year. The system's implementation will be completed in 2026. Citizens resident in the Republic of Armenia can claim a reimbursement of social expenses (education and healthcare) from their income tax by filing an income tax return. This reimbursement applies to social expenses incurred by both the individual filing the return and family members (spouse, parents, and children). The reimbursement of expenses does not exceed 100,000 drams per reporting year. The deadline for filing income tax returns for 2025 is March 2 to November 1, 2026.
