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Investor Presentaiton

10 Investment guide Armenia Investment incentives Foreign investors can benefit from the following investment incentives: - 100% ownership permitted Companies registered by a foreigner in Armenia have the right to buy land. Although foreign citizens are not allowed to own land in Armenia, they are offered long-term lease contracts VAT payments postponement for up to 3-year period for importing equipment and goods within the scope of investment projects, subject to the Government approval Free exchange of foreign currencies Free repatriation of profit In case of any changes in legislation foreign investors can choose which law to use for up to a five-year term (five-year grandfather clause) Free Economic Zones (no value added tax, no property tax, no profit tax, no custom duties) Profit tax privileges for large exporters (exported goods and services for at least 40 billion AMD (about 84 million USD), except those in mining, jewelry, precious metals and stones processing, excisable goods production) No export duties and restrictions KPMG - No screening and specific authorization required for making investment No restrictions on remittances No restrictions on staff recruitment No sector-specific or geographic restrictions on investments, except in certain national defense- related sectors Customs duty exemption. Materials and equipment/ technology imported from non-EEU country that cannot be replaced by materials and equipment produced by EEU country to implement investment project in the priority sector of economy of Armenia and exceptionally in the territory of RA are exempted form customs duties. Tax exemptions in close to border areas of Armenia Tax exemptions in Tavush region of Armenia (operations within the framework of investment projects above 2 billion AMD (except those in mining and chemical production sectors) Armenia has signed bilateral treaties on reciprocal promotion and protection of investments with 41 countries. Armenia is also a signatory of the International Convention of Investment Disputes (ICSID), CIS Multilateral Convention on the Protection of Investor Rights. In addition, it has double taxation treaties with 41 countries as of 2016. The benefits of these particular treaties are easy to access by providing supporting documentation of residency from foreign tax authorities. Since January 2015 Armenia is a member of the Eurasian Economic Union (EEU), which creates the following opportunities: - - Duty free import of raw materials from EEU member states. No customs formalities during mutual trade between EEU member states, which leads to financial costs reduction and time- consuming for business. No non-tariff measures of trade and trade technical barriers between EEU member countries. Favorable import tariffs for about 750 products. Armenia has signed free-trade agreements with Georgia and most of the CIS countries. Armenia currently enjoys GSP beneficiary status with Canada, Japan, Norway, Switzerland, and the United States. Since 2009, Armenia has also been included in the list of countries granted GSP+ by the European Union. © 2016 KPMG Armenia cjsc,. All rights reserved.
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