Swear I'll declare
How far has your government gone to fight corruption? In Armenia, which has long been considered one of the most corrupt places in Europe, the government, led by prime minister Nikol Pashinyan, has decided to go the extra mile, making it mandatory for all residents to declare all kinds of income exceeding €700 for every fiscal year. This means that around 700,000 residents – a substantial portion of the country's three million population – will be required to declare their income for the 2024 fiscal year before the deadline of 1 May.
While many countries across Europe have introduced similar laws on income declaration, Armenia has taken it a step (or two) further. If a friend, a family member, or a significant other has transferred more than €700 to your bank account, you need to declare that, even if the money was sent from abroad. If you rent out an apartment and get income from it, you need to declare the income and pay 10% tax. Hit the jackpot at a casino or got lucky with a lottery ticket? Declare, declare, declare!
Since coming to power in 2018, after nationwide protests that called for a more democratic and transparent Armenia, Nikol Pashinyan and his government have made the fight against corruption a top priority. Although Armenia has registered significant progress in its democracy and human rights record, eliminating corruption has proved to be more challenging for the country's leadership.
This comprehensive income declaration system gives the government easier access and oversight over financial transactions, making it harder for corruption schemes and money laundering practices – long embedded in virtually all sectors of Armenian society – to persist.
However, the country's opposition and many segments of Armenian society have raised concerns about the privacy issues posed by the new declaration system. Elderly residents and those unfamiliar with (online) bureaucratic procedures worry that the law adds yet another layer of complexity to their daily lives.