How to receive paid tuition reimbursement from income tax?

This is a recommendation.

Purpose

To reimburse the tuition fees of hired individuals, who acquire only one profession.

Who is it for?

For the students who are citizens of the Republic of Armenia, doing paid work, who in their current studies pursue master's, doctorate or PHD degrees in the higher educational institutions accredited in the Republic of Armenia, with the following specialties:

List of professions

How is the compensation calculated and how much is it?

In order to reimburse the tuition fee, an amount equal to the amount of income tax calculated for the student's salary and equivalent payments during one year shall be reimbursed, but not more than the amount paid for the tuition.

The beginning of the calculation of the amount of income tax subject to refund is 01/09/2020.

How does the student receive the compensation amount?

The refund is transferred to the student's bank account.

What is needed to receive compensation?

It is necessary to submit the following documents to the tax authority:

• Application set by the tax authority for income tax refund*
• Copy of the contract signed with the higher education institution accredited in the RA.
• Student identification document: RA passport or identification card.
• Student’s public service number or reference on absence of public service number
• Reference provided by the head of the educational institution.*

Reference template

* These documents must be submitted each time the person applies, and the rest of the documents - only when the person applies for the first time.

The above-mentioned documents are submitted to the tax authority within 3 months after the end of the academic year.

In case of passing all the exams necessary for the successful completion of the academic year after the end of the academic year, the documents shall be submitted to the tax authority within 6 months after the end of the academic year.

Attention

Income tax refund application is rejected if:

• For all the months included in the academic year at the time of submitting the application, during which the student was considered an employee by the employer, the declared tax liabilities for the submitted income tax, monthly (simplified) calculation of salary, and equivalent payments are not fully fulfilled;
• The required documents have not been submitted;
• The student has used the opportunity for reimbursement of the income tax for the tuition fee in the same educational level for another profession, in accordance with the procedure defined by this decision;
• Based on the information available in the tax authority, it turns out that during the academic year the student actually used the opportunity for reimbursement of the income tax provided for in Article 160 of the Tax Code.

A borrower of a student loan can be a student of an educational institution, their parents, spouse, parents-in-law, sisters, brothers, sister or brother-in-law, siblings of the student's parents, their spouses and children, student's grandparents.

• The loan is provided in a non-cash form. The loan amount is credited to the bank account of the educational institution;
• Other conditions for providing student loans may be established within the framework of cooperation agreements concluded with educational institutions;
• Factor for a positive decision on provision of a loan is customer credit rating;
• Factors for rejection of provision of a loan: insufficient financial performance as a result of the analysis, bad credit history of the customer, insufficiency/lack of required collateral, professional opinion of the Business Advisor, professional opinion of the Credit Committee
• During the validity of the contract, the statements are provided by email at a frequency of thirty days, if the customer does not choose another way of communication.
• Credit account statement subject to mandatory provision during the validity of the contract and other information is provided free of charge. The statement subject to non-mandatory provision by the RA legislation, the copy of the statement is provided:

• For the period of up to 6 months (inclusive) - free of charge,
• For the period of 6 to 12 months (inclusive) - 2,000 AMD (including VAT),
• For the period of more than 1 year - 3,000 AMD (including VAT).

YOU HAVE THE RIGHT TO COMMUNICATE WITH YOUR FINANCIAL ORGANIZATION IN YOUR PREFERRED METHOD - BY MAIL OR EMAIL. RECEIPT OF INFORMATION ELECTRONICALY IS THE MOST CONVENIENT. IT IS AVAILABLE 24/7, FREE OF THE RISK OF LOSS OF PAPER INFORMATION AND PROVIDES CONFIDENTIALITY.

The Bank may unilaterally change the contractual interest rate by notifying the Borrower at least 7 calendar days in case of non-purposeful use of the loan, as well as failure to fulfill the obligations set forth in the loan agreement.

ATTENTION: APPLYING FOR A LOAN, THE BANK WILL PROVIDE YOU, YOUR GUARANTORS (IF AVAILABLE) WITH AN INDIVIDUAL SHEET OF SIGNIFICANT TERMS OF CONSUMER LOAN, WHERE THE INDIVIDUAL TERMS OF CREDIT LINE, PROVIDED TO YOU, WILL BE PRESENTED.

Information provided to the credit registry

ATTENTION: IN CASE OF NOON-PERFORMANCE OR INCOMPLETE PERFORMANCE OF YOUR LIABILITIES, AFTER THREE WORKING DAYS THE CREDITOR WILL PROVIDE THAT DATA TO YOUR CREDIT BUREAU, WHERE YOUR CREDIT HISTORY IS CREATED. YOU HAVE THE RIGHT TO RECEIVE YOUR CREDIT HISTORY FROM CREDIT BUREAU FREE OF CHARGE EVERY YEAR.

ATTENTION: BAD CREDIT HISTORY MAY PREVENT YOU FROM RECEIVING A LOAN IN THE FUTURE.

FOR GUARANTORS

Please be informed that:

• If the borrower fails to perform their liabilities, you will pay for it instead, your credit history will be impaired, and your property will be confiscated.
• You will be provided with the copies of the loan agreement, guarantee agreement and repayment schedule.
• The communication will be performed in the way, preferred by you.
• You will be notified 7 days in advance of a change in the terms of the contract.
• A reminder of the current liability will be sent to you 1 day in advance.
• In case of delay of loan repayment, you will be notified at the latest one day later.

THE GUARANTOR HAS THE RIGHT TO:

• Request from the creditor the information on the loan balance at any time.
• Receive the money, paid by you for the loan, from the borrower, as well as other losses incurred by you instead of the borrower.