YEREVAN, APRIL 30, NOYAN TAPAN. The National Assembly of Armenia on April 27 passed (in the second reading and completely) a legislative package envisaging amendments and additions to the Law on Prize Games and Casinos, the Law on State Duty, the Law on Fixed Payments, the Law on Value Added Tax, and the Law on Profit Tax. The package had been submitted by the government. The addition to the Law on Prize Games and Casinos stipulates that starting from 1 January 2013 prize games, casinos, and Internet prize games (in a playroom) shall be organized only within the administrative borders of Tsakhkadzor community in Kotayk marz, Sevan community in Gegharkunik marz, and Jermuk community in Vayots Dzor marz - in accordance with the standards and at the distance (from state institutions, educational and historical-cultural institutions and hospitals) which is established by the Armenian government. Such activity may also be organized at Yerevan's Zvartnots Airport and "Yerevan" free economic zone, as well as in case of an over 40 billion dram investment project approved by the Armenian government - according to the standards and in the areas outside Yerevan which were established by the government. The drafts in the indicated legislative package review the taxation principles regarding activities of casinos, the organization of Internet prize games, and the operation of prize game-playing machines. In particular, it is proposed reviewing the fixed payments levied for activities of casinos, the organization of Internet prize games and the operation of prize game-playing machines, starting from 2013. Instead, the current amounts of the annual state duty for the given activity will be increased considerably - in accordance with the zoning coefficient. This amendment is aimed at reducing corruption risks and eliminating the need to check validity of information submitted by organizers. At the same time it is proposed exempting the given types of activities from value added tax. The package also proposes that in terms of profit taxation, the revenues received from the operation of casinos and prize game-playing machines and the organization of Internet prize games are not considered as revenues, and expenses on organization of such activities are not considered expenses.

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