Harmful Tax Practices – 2024 Peer Review Reports on the Exchange of Information on Tax Rulings

Armenia

Armenia has met all aspects of the terms of reference (OECD, 2021[1]) (ToR) for the calendar year 2024 (year in review), and no recommendations are made.

In the prior year report, as well as in the 2019-2022 peer reviews, Armenia had received two recommendations. Armenia has resolved these issues and therefore none of the prior year recommendations remain.

Armenia can legally issue one type of rulings within the scope of the transparency framework.

In practice, Armenia issued no rulings within the scope of the transparency framework.

As no exchanges took place, no peer input was received in respect of the exchanges of information on rulings received from Armenia.

Information gathering process (ToR I.A)

1. Armenia can legally issue the following type of rulings within the scope of the transparency framework: cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles.

Past rulings (ToR I.A.1.1, I.A.1.2, I.A.2.1, I.A.2.2)

2. For Armenia, past rulings are any tax rulings issued prior to 1 September 2019. However, there is no obligation for Armenia to conduct spontaneous exchange information on past rulings.

Future rulings (ToR I.A.1.1, I.A.1.2, I.A.2.1)

3. For Armenia, future rulings are any tax rulings within scope that are issued on or after 1 September 2019.

4. In the prior years’ peer review reports, it was determined that processes to ensure the implementation of the obligations relating to the transparency framework with regard to the information gathering process were not yet in place (ToR I.A). Therefore, Armenia was recommended to finalise its information gathering process for identifying all future rulings and potential exchange jurisdictions, as soon as possible.

5. During the year in review, Armenia reported progress in finalising its information gathering process. The transfer pricing division within State Revenue Committee (“SRC”) is responsible for the issuance of APAs. The SRC has developed internal guidance setting out procedures for identifying and registering APAs. The transfer pricing division is responsible for the identification of the APAs and for gathering the necessary information on the potential exchange jurisdictions. Before an APA can be concluded, the taxpayer needs to provide information on the jurisdictions of the of the relevant related entities, the immediate parent entity, and the ultimate parent entity. Armenia now has its information gathering process for identifying all future rulings and potential exchange jurisdictions in place and the prior years’ recommendation can be removed.

6. To date, no rulings within the scope of the transparency framework have been issued. As such, there was no need to identify potential exchange jurisdictions.

7. During the year in review, it was determined that Armenia’s undertakings to identify future rulings and all potential exchange jurisdictions were sufficient to meet the minimum standard and the recommendation is now removed.

Review and supervision (ToR I.A.3)

8. In the prior years’ peer review reports, it was determined that Armenia’s review and supervision mechanism was sufficient to meet the minimum standard. Armenia’s implementation in this regard remains unchanged, and therefore continues to meet the minimum standard.

Conclusion on section A

9. Armenia has met all of the ToR for the information gathering process and no recommendations are made.

Exchange of information (ToR II.B)

Legal basis for spontaneous exchange of information (ToR II.B.1, II.B.2)

10. Armenia has the necessary domestic legal basis to exchange information spontaneously. Armenia notes that there are no legal or practical impediments that prevent the spontaneous exchange of information on rulings as contemplated in the Action 5 minimum standard.

11. Armenia has international agreements permitting spontaneous exchange of information, including: (i) the Multilateral Convention on Mutual Administrative Assistance in Tax Matters: Amended by the 2010 Protocol (OECD/Council of Europe, 2011[2]) (“the Convention”) and (ii) bilateral agreements in force with 51 jurisdictions.1

Completion and exchange of templates (ToR II.B.3, II.B.4, II.B.5, II.B.6, II.B.7)

12. In the prior years’ peer review reports, it was determined that Armenia’s process for the completion and exchange of templates was not yet in place. Therefore, Armenia was recommended to develop a process to complete the templates on relevant rulings and to ensure that the exchanges of information on rulings occur in accordance with the form and timelines under the transparency framework. With respect to past rulings, no action was required.

13. During the year in review, Armenia finalised and implemented internal guidance that sets out detailed procedures for the completion and exchange of information on APAs. According to this guidance, once an APA is concluded with a taxpayer, the transfer pricing division is required to complete the exchange template, which is based on Annex C of the BEPS Action 5 report (OECD, 2015[3]), within ten working days. The summary section of the exchange template has to be completed in line with the internal FHTP suggested guidance.

14. The template is then transmitted to the exchange of information division within the SRC. This division is responsible for exchanging the information with relevant jurisdictions within a maximum period of three months from the conclusion of the ruling. Armenia now has a process in place for the completion and exchange of templates and therefore, the prior years’ recommendation is now removed.

15. During the year in review, no exchanges were required to take place and no data on the timeliness of exchanges is reported.

Conclusion on section B

16. Armenia has the necessary legal basis for spontaneous exchange of information, a process for completing the templates in a timely way and has completed all exchanges. Armenia has met all of the ToR for the exchange of information process and no recommendations are made.

Statistics (ToR IV.D)

17. As no rulings were issued, no statistics can be reported.

Matters related to intellectual property regimes (ToR I.A.1.3)

18. Armenia does not offer an intellectual property regime for which transparency requirements under the Action 5 Report (OECD, 2015[3]) were imposed.

Summary of recommendations on implementation of the transparency framework

Aspect of implementation of the transparency framework that should be improved	Recommendation for improvement
	No recommendations are made.

Note

← 1.  Participating jurisdictions to the Convention are available here: www.oecd.org/tax/exchange-of-tax-information/convention-on-mutual-administrative-assistance-in-tax-matters.htm. Armenia also has bilateral agreements with Austria, Belarus, Belgium, Bulgaria, Canada, China (People’s Republic of), Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Malta, Moldova, Netherlands, Poland, Qatar, Romania, Russia, Serbia, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Syrian Arab Republic, Thailand, Tajikistan, Turkmenistan, Ukraine, United Arab Emirates and United Kingdom.