In Armenia, individuals with restricted information will also have the opportunity to receive compensation for social expenses

ArmInfo. In Armenia, individuals holding restricted information will also be eligible for reimbursement of social expenses. The decision to this effect was made at a government meeting.

The rationale for the draft decision notes that, as of January 1, 2023, a three-stage income declaration system has been introduced for

citizens-residents of the Republic of Armenia (except for minors) and, concurrently, a social expenses system, under which declarants have the opportunity to receive a reimbursement from their income tax for a portion of the expenses for medical and educational services incurred by them (or their family members) during the year.  In 2023 and 2024, individuals whose information is defined by law as restricted information with respect to taxable income were not considered to have submitted an annual income tax return.  In 2025 and subsequent years, all citizens of the republic who are residents (except for persons considered minors) are required to submit an annual income tax calculation.  Meanwhile, the RA Government Resolution of March 9, 2017 stipulates that employers shall not submit applications for registration of persons for whom the information to be included in the registration application is defined by the legislation of the Republic of Armenia as information of limited use. On the other hand, when calculating income tax and social contributions monthly, the amounts of income of the specified persons and the income tax withheld from them are reflected in the corresponding line of the calculation in aggregate form.  The problem is that persons, information about whom  Those who possess restricted information, as defined by law as restricted-use information, are not eligible for reimbursement of social expenses in the form of income tax calculated and paid from their taxable income in accordance with current legislation.

The draft proposes establishing two options for ensuring the possibility of receiving reimbursement of social expenses for individuals who possess restricted-use information. Specifically, under the first option, the employer, in the manner and format established by the tax authority, provides the tax authority with information on wages and equivalent payments calculated for the reporting year, income received for work performed and/or services rendered under civil law contracts, as well as the amounts of income tax calculated on them and paid to the state budget, and the tax authority reimburses social expenses. Under the second option, The employee submits a corresponding application to the government agency, and the government agency reimburses social expenses.

It should be noted that individuals with access to restricted information (constituting a state or official secret) and whose income is considered restricted information include employees and officials of the national security, defense, police, foreign intelligence, and investigative agencies of the Republic of Armenia.