Armenia’s tax contribution bill wins committee backing

Armenia’s Parliamentary Committee on Financial-Credit and Budgetary Affairs endorsed the Tax Code bill on 11 November, advancing a proposal to let citizens direct some of their paid income tax to nongovernmental organizations, media and political parties. The committee vote does not make the mechanism available: the bill still needs parliamentary approval, and the government must set its detailed rules.

The government approved the draft amendments on 17 September. Existing social-expenditure refunds cover education and healthcare costs; the proposal would add donations to eligible organizations, including media organizations and individual entrepreneurs engaged in media activities.

How contributions would work

Deputy Finance Minister Hamlet Sahakyan said the tax authority would compile a list of recipients for the tax declaration system, and citizens would choose whom to support. Prime Minister Nikol Pashinyan said citizens would select an organization and an amount electronically after completing and confirming their declaration, with state bodies transferring the money, ArmLur said.

Sahakyan outlined proposed requirements for recipients: 2 years of registration, no outstanding tax obligations and financial reports including revenue and spending. He said no criteria based on the content of organizations’ activities were envisaged, and those meeting the requirements would enter the system. A separate government decision would determine the eligible recipients, criteria and maximum contributions.

Finance Minister Vahe Hovhannisyan said citizens would need an unused balance of paid income tax. Someone whose tax had already been fully refunded through the mortgage interest refund program could not allocate that money again.

The existing annual ceiling for social-expenditure refunds is AMD 100,000. Hovhannisyan said no decision had been made on whether contributions would count within that ceiling or be allowed in addition to it.

Funding, accountability and privacy

Hovhannisyan said the proposal aims to strengthen media independence and encourage outlets to respond to citizens’ information needs. He called for straightforward reporting rules that would let donors understand recipients’ activities without placing an unnecessary burden on them.

Lawmakers raised concerns about recipient selection, political privacy and possible pressure on donors. Civil-society organizations also raised concerns that employers or state bodies could steer employees toward particular recipients and that donations to parties could reveal political preferences.

Asked whether government-set criteria could exclude media critical of the authorities, Hovhannisyan rejected that interpretation and said the aim was clear accountability. He said donor information would be personal data and pointed to the State Revenue Committee’s existing protections for tax and income information.

Pashinyan proposed introducing the mechanism from 1 January 2027 during preliminary parliamentary discussions of the 2027 state budget, ArmLur said. Parliamentary approval and the government’s decisions on the implementing rules remain ahead.