Public officials have recently clarified the rules surrounding social spending in Armenia. Individuals who report their income tax have the right to deduct social spending from their taxable income. This deduction also applies to social expenses incurred by family members, including children, parents, and dependents. Social spending encompasses health insurance expenses covered by insurance companies operating in Armenia, as well as tuition fees for various educational programs, such as pre-school, primary, secondary, middle, high, and postgraduate programs approved by the state.

In order to benefit from these deductions, individuals must obtain an invoice from the service provider, which should include their name and the universal identifier of the service provider. If the social spending is for a family member, an additional document confirming their identity and the universal identifier of the service provider is also required. The maximum amount that can be deducted annually for healthcare expenses is 50,000 drams, while for education, it is 100,000 drams.

It is essential to note that the maximum deduction limit for all types of social spending, including both personal and family members’ expenses, is 100,000 drams per year for individuals. This means that individuals can deduct up to this specified amount from their taxable income for the year.