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RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF ARMENIA

# 136 of 13/02/02

ON HUMANITARIAN ASSISTANCE AND CHARITY PROGRAMS

040.0136.130202

I hereby ratify this
President of the Republic of Armenia
Robert Kocharian
February 13, 2002

RESOLUTION OF THE GOVERNMENT OF THE REPUBLIC OF ARMENIA
# 136 OF 13 FEBRUARY , 2002

ON HUMANITARIAN ASSISTANCE AND CHARITY PROGRAMS

With the purpose of ensuring the efficiency of humanitarian assistance and charity
programs and improving the process of classifi cation thereof as such, the government of
the Republic of Armenia resolves:

1. To determine that:

a) The free provision of goods, services a nd works by other states, international
intergovernmental (interstate) organizations, international, foreign and Armenian non-
commercial organizations, as well as na tural persons may be classified as:

humanitarian assistance, provided it is aiming at the im mediate satisfaction of people’s
physical and spiritual needs, particularly at improving the conditions of their nutrition,
health, education, residence or welfare, the development of their work skills and capacity;

charity (same as technical assistance), provi ded it is addressed for health, social,
academic, educational, citizen upbringing, cultural, athletic, environmental organizations
and other organizations of a similar nature, as well as to the Republic of Armenia and the
communities of the Republic of Armenia.

b) Individual transactions as well as a cluster of transactions addressing a particular circle
of beneficiaries that are particularly isolat ed and are similar to each other (hereinafter
referred to as a “program”) shall be subject to classification as humanitarian assistance or
charity.

c) The tax, duty and presumptive tax privileges of a particular program of humanitarian
assistance or charity (hereinafter referred to as “programs” or a “program”), (unless the

former or the qualification of a program as humanitarian assistance or charity are
immediately defined by the laws of the Republic of Armenia and the international
agreements of the Republic of Armenia), provid ed the law stipulates the granting of such
privileges, shall be granted on the basis of the qualification thereof as humanitarian
assistance or charity programs, and they shall be subject to such qualification pursuant to
a procedure stipulated by this regulation.

d) In accord with the work plans of the government of the Republic of Armenia and in
the event of humanitarian assistance or char ity programs of essential public significance
the government of the Republic of Armenia, in conformity with the law of the Republic
of Armenia on the National Budget, may act as a co-financer, implementing the co-
financing in a procedure stipulated by the law. Procedure and within the time-frames
stipulated by this regulation.

e) Proposals with respect to co-financing of humanitarian assistance or charity programs
shall be submitted to the government of the Republic of Armenia in a stipulated
procedure.

f) Proposals on refunds of the amount of the value added tax within the framework of
programs which have been qualified as human itarian assistance or charity prior to
January 1, 2002 and are still underway, shall be submitted and discussed in a procedure
stipulated by this regulation.

g) In the event when the qualification of a pr ogram as humanitarian assistance or charity
is terminated in a procedure stipulated by th is regulation, the part of the amount of co-
financing by the government of the Republic of Armenia, which is identified in the
resolution terminating such qualification, shall be remitted to the National budget of the
Republic of Armenia by the person implementing the program.

2. The powers of the authorized body of th e government of the Republic of Armenia on
coordination of humanitarian assistance, as well as the powers of the authorized body of
the government of the Republic of Armenia, which is envisaged by Clause 15, Article 11
of the Law of the Republic of Armenia ” on the National Budget of the Republic of
Armenia of the year 2002,” shall be reserv ed to the central commission on humanitarian
assistance of the government of the Republic of Armenia.

3. To endorse:

a) The bylaws of the central commission on hu manitarian assistance of the government of
the Republic of Armenia (attached).

b) The regulation for the qualific ation of humanitarian assistance and charity programs as
such (attached).

c) The regulation for the compensation of th e amounts of the value added tax subject to
payment within the framework of humanitarian assistance or charity programs (attached).

4. The ministries and departments of the Republic of Armenia, the regional governors of
the Republic of Armenia and the mayor of Yerevan shall forward information (unless
such information has been issued by the cen tral commission on humanitarian assistance
of the government of the Republic of Armenia) pertaining to humanitarian assistance and
charity programs implemented in conformity with the laws of the Republic of Armenia,
the international agreements of the Repub lic of Armenia, the resolutions of the
government of the Republic of Armenia and of the central commission on humanitarian
assistance of the government of the Repub lic of Armenia, to progress in the
implementation and to transactions in the framework thereof to the central commission
on humanitarian assistance of the government of the Republic of Armenia, within a
period of two weeks following the receipt of such information.

5. The central commission on humanitarian assistance of the government of the Republic
of Armenia is hereby instructed to submit to the Prime Minister of the Republic of
Armenia quarterly summaries on the course of implementation of humanitarian assistance
and charity programs by the last working day of the month following each quarter.

6. Clauses 1 through 5 inclusive of the Resolution of the government of the Republic of
Armenia # 573 of June 28, 2001, “On humanitarian assistance and charity programs and
the procedure of qualification thereof as such” shall hereby become null and void.

Endorsed by Resolution
of the government of RA
# 136 of 13 February, 2002

BYLAWS OF THE CENTRAL COMMISSION ON HUMANITARIAN ASSISTANCE
OF THE GOVERNMENT OF THE REPUBLIC OF ARMENIA

1. GENERAL PROVISIONS

1. These bylaws shall define the procedure for the organization and operation of the
central commission on humanitarian assistan ce of the government of the Republic of
Armenia (hereinafter referred to as the “commission”).

2. The commission shall be governed in its oper ation by the legislation of the Republic of
Armenia and by these bylaws.

3. The commission shall comprise its chairman, a deputy chairman, a secretary and the
members.

The composition of the commission may include representatives from the state bodies of
the Republic of Armenia, other organizations as well as from foreign organizations
implementing humanitarian assistance and char ity in the Republic of Armenia, individual
benefactors.

The individual composition of the commissi on shall be approved by the Prime Minister
of the Republic of Armenia.

4. Expenses pertaining to the operation of the commission shall be financed by the funds
of the National budget of the Republic of Arme nia, through the staff of the government of
the Republic of Armenia.

5. The members of the commission shall pe rform their duties without remuneration.

6. The commission shall have a round rubber stamp and a letterhead in its name.

7. The functions of the commission shall be performed by the Lending, grants and
humanitarian assistance programs directorate of the Staff of the government of the
Republic of Armenia, the director of which shall, ex officio, be the deputy chairman of
the commission.

8. The commission shall be accountable for it s operation before the government of the
Republic of Armenia.

2. THE PURPOSE AND FUNC TIONS OF THE COMMISSION

9. The purpose of the commission shall be to coordinate humanitarian assistance and
charity operations in the Republic of Armenia.

10. The following shall constitute th e functions of the commission:

a) qualification of programs as huma nitarian assistance or charity;

b) termination of the qualification of a progr am as humanitarian assistance or charity and,
if such qualification originates in a legal ac t other than a resolution of the commission,
submission of a petition to terminate such qualification to the body that had initially
adopted the legal act in question;

c) oversight over the implementation of huma nitarian assistance or charity programs,
receipt of quarterly reports on their progre ss and summary reports upon their completion;

d) maintenance of an administrative registry based on the information on humanitarian
assistance or charity programs;

e) consideration of and action upon applica tions on refunding the amounts of the value
added tax within the framework of humanitarian assistance or charity programs subject to
be refunded pursuant to Clause 15, Article 11 of the Law of the Republic of Armenia “on
the National Budget of the Republic of Armenia of the year 2002;”

f) study of the practice of implementation of humanitarian assistance or charity programs,
taking of measures to increase the efficiency thereof, including submission of petitions to
relevant public bodies seeking the taking of the necessary measures;

g) discussion of summary reports on the im plementation of humanitarian assistance or
charity programs and confirmation of program implementation;

h) organization and/or implem entation of recording and distribution of goods received in
the name of the Republic of Armenia as humanita rian assistance or charity, in conformity
with the powers stipulated by the resolu tion of the government of the Republic of
Armenia pertaining to the disposition of the goods in question;

i) ensuring transparency in the area of humanitarian assistance or charity;

j) implementation of other functions envisa ged by the legislation of the Republic of
Armenia.

11. The commission shall cooperate in its opera tion with state bodies of the Republic of
Armenia, as well as with the organizations implementing humanitarian assistance or
charity programs.

With the purpose of implementing its functions the commission shall be entitled to
command and receive from state bodies and bodies of local self-governance of the

Republic of Armenia, as well as organizations the information, analytical and other
documents necessary for its operation.

12. The commission may convene conference me etings with the purpose of discussing
the work performed by the commission as well as of issues pertai ning to humanitarian
assistance or charity programs implemented in the Republic of Armenia.

3. ORGANIZATION OF THE OPER ATION OF THE COMMISSSION

13. The commission, within the framework of its powers, shall organize and implement
its operation through meetings, decision-making by polling procedure, the chairman, the
deputy chairman of the commission, the secr etary of the commission, the staff of the
commission, as well as through the working groups set up by itself with the purpose of
resolving particular issues.

A working group of the commission shall im plement its operation pursuant to a work
order and schedule approved by the commission.

The commission may involve in its work the em ployees and specialists of state bodies of
the Republic of Armenia.

14. The meetings of the commission shall be convened as necessary, at least once every
month.

Non-members of the commission may participat e in its meetings in advisory capacity
upon the invitation of the chairman of th e commission or by the resolution of the
commission.

15. The quorum for the validity of the meetings of the commission shall comprise at least
two thirds of the members of the commission. The resolutions of the commission shall be
adopted by a simple majority of the members present and, in the event of polling, of the
total number of the members of the commissi on. In the event of a tie the vote of the
chairman of the commission shall be decisive.

Upon the request of the chairman, the deputy chairman of the commission, the secretary
of the commission or a member of the comm ission the objection or reservation thereof
pertaining to a resolution of the commission sh all be reflected in the transcript of the
meeting of the commission.

16. The resolutions of the commission shall be signed by the chairman of the commission
and the secretary of the commission.

17. Issues pertaining to qualific ation of programs as humanitarian assistance or charity
and termination of such qualification shall be discussed, and resolutions thereon shall be

adopted and implemented in a procedure stipulated by the government of the Republic of
Armenia.

18. The chairman of the commission shall:

a) organize and run the operation of th e commission, ensure its regular work;

b) assign the date, time and the venue for the meetings of the commission;

c) submit for the endorsement of the commissi on the draft agenda of a meeting and, if
necessary, organize the discussion of particular issues through polling;

d) conduct the meetings of the commission;

e) sign the resolutions of the commission;

f) upon the presentation of the deputy chairman of the commission, confirm by initialing
or, if necessary, submit to the commission the question of confirming the completion of a
program;

g) upon the presentation of the deputy chairm an of the commission, discuss and process
in a stipulated procedure the applications on refunding the amounts of the value added tax
within the framework of humanitarian assi stance or charity programs subject to be
refunded pursuant to Clause 15, Article 11 of the Law of the Republic of Armenia “on the
National Budget of the Republic of Armenia of the year 2002;

h) on the basis of the study of the practice of implementation of humanitarian assistance
or charity programs, take measures to improve such practice, to increase the efficiency of
the programs, as well as, with respect to discovered violations, submit proposals and
petitions to the relevant state bodie s for taking the necessary measures;

i) submit, if necessary, a petition to the state customs co mmittee under the government of
the Republic of Armenia, seeking permission to apply the “temporary importation”
customs regime to goods imported for the impl ementation of humanitarian assistance and
charity;

j) organize the implementation of recording and distribution of goods received in the
name of the Republic of Armenia as humanitarian assistance or charity;

k) ensure the coverage and transparen cy of the operation of the commission;

l) represent the commission in the Republic of Armenia, other states and international
organizations;

m) implement other powers reserved to him/her by the legislation of the Republic of
Armenia and these bylaws.

19. The deputy chairman of the commission shall:

a) perform the instructions of the chairman of the commission pertaining to the
organization of the operation of the commission;

b) replace the chairman of the co mmission during his/her absence;

c) organize and run the operation of the ope ration of the staff of the commission;

d) coordinate the work of the working groups established by the commission;

e) receive and examine:

– quarterly reports on the progress in implementation and summary reports upon the
completion of humanitarian assistance or charity programs from the organizations
implementing such programs;

– documents pertaining to the submission a nd acceptance of the results of program
implementation, provided the program or the resolution on qualifying it as humanitarian
assistance or charity or another legal act had envisaged a procedure of such submission
and acceptance;

– the report by the person overseeing progr am implementation, if the resolution on
qualifying the program as humanitarian assi stance or charity had appointed such a
person;

– documents submitted by the personal initiative of the benefactor, the person
implementing the program, other interested parties;

– data obtained as a result of surveys of beneficiaries in itiated by himself/herself or by
others;

– the results of inspections conducted in conformity with the law of the Republic of
Armenia “On the organization and conduct of inspections in the organizations operating
on the territory of the Republic of Armenia;”

– other information obtained and received on pr ograms of humanitarian assistance and
charity, the progress and results thereof,

on the basis of information received, he/she shall maintain an administrative registry of
humanitarian assistance or charity programs;

as a result of examination of information on the progress and completion of humanitarian
assistance and charity programs:

discuss with a responsible member of the staff the summary data on the implementation
of a humanitarian assistance or charity program and submit a recommendation to the
chairman of the commission on confir ming the completion of the program;

in the event of failure by the organization implementing a program to submit the
stipulated information, or in the event of discovering information in the documents
submitted which does not correspond to the real ity, or in the event of existence in the
operation of the organization implementing a program of essential violations of the
legislation of the Republic of Armenia, as we ll as if the purposes of the program are not
being met, submit a recommendation to the ch airman of the commission on terminating
the qualification of the program in question as humanitarian assistance or charity;

summarize the practice of implementation of a humanitarian assistance or charity
program, the results thereof, and submit recommendations to the chairman of the
commission pertaining to improving such prac tice, increasing the efficiency of the
programs, as well as taking the necessary m easures with regard to the violations
discovered;

f) discuss applications on refunding the amounts of the value added tax within the
framework of humanitarian assistance or charity programs subject to be refunded
pursuant to Clause 15, Article 11 of the Law of the Republic of Armenia “on the National
Budget of the Republic of Armenia of the year 2002” and submit a recommendation to
the chairman of the commission;

g) organize the implementation of recordi ng and distribution of goods received in the
name of the Republic of Armenia as humanitarian assistance or charity;

h) with the purpose of ensuring transparency in the area of humanitarian assistance or
charity submit the necessary information to the chairman of the commission to be
released to the mass media;

i) implement other powers reserved to him/ her by the legislation of the Republic of
Armenia and these bylaws.

20. The secretary of the commission shall:

a) prepare the draft agenda of the meeting of the commission, the necessary materials and
draft resolutions and submit these to the chairman of the commission;

b) no later than two days before the meeti ng of the commission circulate to the members
of the commission the draft ag enda of the meeting of the commission and the materials
pertaining to the intended issues;

c) organize the preparation of the meeting of the commission;

d) sign the resolutions adopted by the commission and the transcripts of the meetings of
the commission;

e) disseminate the resolutions of the commi ssion to the respective organizations within
stipulated timeframes;

f) organize clerical supp ort for the commission;

g) conduct the meetings of the commission in the absence of the chairman and the deputy
chairman of the commission;

h) implement other powers reserved to him/ her by the legislation of the Republic of
Armenia and these bylaws.

21. The members of the commission:

a) must participate in the work of th e commission in the stipulated manner;

b) shall be responsible for the implementation of instructions issued to them through the
resolutions of the commission;

c) shall have the right to acquaint themselv es with the materials held by the commission
on the progress and the results of any program, as well as the transcripts of the meetings
of the commission;

d) may propose issues, prior to the meeting of the commission, to be included in the
agenda of the meeting, as well as ex press their opinion about the agenda;

e) may submit, through a stipulated proce dure, the issue of annulling or amending a
resolution adopted by the commission to the government of the Republic of Armenia.

The members of the commission shall also im plement other powers reserved to them by
the legislation of the Republic of Armenia and these bylaws.

Endorsed by Resolution
of the government of RA
# 136 of 13 February, 2002

REGULATION FOR THE QUALIFICATION OF HUMANITARIAN ASSISTANCE
AND CHARITY PROGRAMS AS SUCH

1. This regulation shall determine the proce dure for the submission, consideration of and
deciding on an application for the qualification of a program or transaction (hereinafter
referred to as a “program”) as humanitarian assistance or charity, for the implementation
of oversight over the realizati on of the programs thus qualified, and for the termination of
such qualification.

The issue for qualifying a program as humanitari an assistance or charity in a procedure
defined by this regulation may be raised in th e events when the initiators of the program
intend, within the framework of the program and in a procedure stipulated by the law, to
take advantage of co-financing by the government of the Republic of Armenia or of the
tax, duty and presumptive tax privileges defined by the law (hereinafter referred to as the
“tax privileges”), unless the implementation of the aforementioned co-financing or tax
privileges or qualification originates in th e laws of the Republic of Armenia and/or
international agreements of the Republic of Armenia.

2. Relations pertaining to the qualification of a program as humanitarian assistance or
charity shall be defined by the legislation of the Republic of Armenia and by this
regulation.

3. A program may include:

a) the name and the purposes of the program;

b) the venue and the area of program impl ementation (the administrative region [marz],
the community, the settlement, the organization, the ministry, the department);

c) information concerning the sources and amounts of the funds and other means for the
implementation of the program (the state, legal and natural persons);

d) the beneficiaries of the program (legal a nd natural persons, communities, the state), the
principles and rationale for their selection;

e) the names of the persons immediately implementing the program (in the event of an
organization its full name, including the type of its legal organization as well as the
taxpayer identification number);

f) the timeframe for the implementation of the program and its phases, if the latter may be
identified, its beginning and the end or the period covered;

g) the procedure for the implementation of the program;

h) the transactions envisaged in the course of the implementation of the program, the
significance of each of those for the imple mentation of the program and a brief
description, together with the volume and the value of the goods, services and works
which are the objects of af orementioned transactions;

i) the transactions envisage d in the course of the implementation of the program over
which the initiators of the program envisage the implementation of co-financing by the
government of the Republic of Armenia, with a reference to the amount and timeframe of
such envisaged co-financing, as well as the transactions, over which the granting of tax
privileges is envisaged;

g) the cooperation, in the course of the implementation of humanitarian assistance or
charity, with bodies of state governance, local self-administration and other
organizations, provided such cooperation is envisaged;

k) a description of the mechanism for overs ight over the effectiveness of the final
outcome of the program, provided it is envisaged;

l) a description of other circumstances, f acts, data, other rationale, which may be
considered of significance by th e initiators of the program.

4. Only programs implemented by and on the ex pense of the funds and other means of
other states, international in tergovernmental (interstate) organizations, international,
foreign and Armenian non-commercial orga nizations, as well as natural persons
(hereinafter referred to as “benefactors”) may be qualified as human itarian assistance or
charity.

A program aiming at consumption by a detached division or institution, or the employees
thereof, of an organization shall not be subj ect to qualification as humanitarian assistance
or charity.

Programs envisaging a purchase and sale tr ansaction (monetization) involving imported
goods shall be subject to be qualified as human itarian assistance or charity, provided the
monetization revenue is remitted in its entire ty into the national budget of the Republic of
Armenia.

5. A program subject to be qualified as human itarian assistance or charity may include
transactions which aim at immediate consump tion by the beneficiaries of the program, as
well as related transactions which target the efficient implementation of the program, in
particular, ensuring the implementation and/or organization of importation, procurement,
receipt, customs clearance, transportation, unloading, certification, preservation,
warehousing and/or distribution of goods, as well as the rendering of services and
performance of works.

6. A program may be qualified as humanitarian assistance or charity by a resolution of
the government of the Republic of Armenia or the central commission on humanitarian
assistance of the government of the Republic of Armenia (hereinafter referred to as “the
authorized body”), on the basis of an application submitted through a procedure
stipulated by this regulation.

A program envisaging a purchase and sale tr ansaction (monetization) involving imported
goods, as well as a program wherein even one beneficiary is a for profit (commercial)
organization (with the exception of organiza tions in the health sector) may only be
qualified as humanitarian assi stance or charity by a resolution of the government of the
Republic of Armenia.

7. The initiators of a program shall submit an application for the qualification of the
program as humanitarian assistance or ch arity (hereinafter referred to as “the
application”) to th e authorized body.

The initiators of a program may submit the application to that body of state governance,
to the scope of operation of which the program pertains. The latter, within a period of 10
days, shall forward it to the authorized body, attaching to it its own opinion of the
program. The body of state governance may also, in a stipulated procedure, submit the
issue of the application to the govern ment of the Republic of Armenia.

The issue of considering applications for pr ograms referred to in the second paragraph,
clause 6 of this regulation, shall be submitted by the authorized body, in a stipulated
procedure, to the government of the Republic of Armenia.

The authorized body may also, in a stipulated procedure, submit to the government of the
Republic of Armenia the issue of considering ap plications for a program not referred to in
the second paragraph, clause 6 of this regul ation, based on the scale of the program
and/or other properties thereof.

8. An individual application shall be submitted for every program. An attachment to the
application shall contain a de scription of the program and other documents, materials,
including opinions of the program by appropr iate state bodies, if such were obtained upon
the initiative of the initiators of the program.

The application shall be submitted well in adva nce, prior to initiating the implementation
of the program, so that by the time of th e commencement of program implementation the
issues pertaining to its qualification as human itarian assistance or charity and to its co-
financing by the government of the Republic of Armenia are sorted out. Derogation from
this rule my take place provided the initi ators of the program substantiate the
impossibility of submitting the application earlier.

The application and the documents attached th ereto shall contain information, referred to
in clause 3 of this regulation, which is pert inent to the program in question. Moreover, the

person immediately implementing the program must be a party to the transactions,
whereas the company of which the person im mediately implementing the program is a
founder or in which he/she is a particip ant may not be a party to aforementioned
transactions.

9. The responsibility for errors and informa tion which does not correspond to the reality
contained in the application and the documen ts attached thereto shall rest with the
applicant.

If the application and the documents attached thereto fail to comply with or meet the
requirements of this regulation, or if the in formation contained therein is in need of
additional substantiation, the a pplicant shall be notified to that effect within ten calendar
days, and the term for the consideration of the application shall be suspended until a
response is received from the applicant.

10. The application and the documents attach ed thereto shall not be subject to be
returned.

11. After receiving the application and befo re passing a decision on it opinions thereon
shall be received from the inte rested ministries and national and territorial bodies of state
governance, moreover, the following shall be mandatory:

a) an opinion by the ministry of finance and economy of the Republic of Armenia, if co-
financing by the Republic of Armenia is envisaged, including refund by the government
of the Republic of Armenia of the amounts of the value added tax to the organizations
implementing the program;

b) an opinion by the ministry of public revenue of the Republic of Armenia, if refund is
envisaged by the government of the Repub lic of Armenia to the organizations
implementing the program of the amounts of the value added tax calculated by the
suppliers against the transactions of pur chase of goods, services and works on the
territory of the Republic of Armenia;

c) an opinion by the ministry of industry and trade of the Republic of Armenia, if a
transaction of importation of goods is envisaged, the value of which exceeds a factor of
fifty thousand of the minimum wage stipulat ed in the Republic of Armenia, with the
exception of programs of the health sector;

d) an opinion by the state customs committee of the Republic of Armenia, if a transaction
of importation of goods is envisaged.

12. The discussion by the government of the Re public of Armenia of the issue of an
application and taking a decision thereon shall be implemented in a stipulated procedure.

13. The maximum period for the discussion of an application in the authorized body shall
be 30 days.

The application shall be discussed in the authorized body wi th the participation of the
applicant. The applicant must be notified of the day, time and the venue of the discussion
(address, room #) at least 2 days in adva nce thereof. The absence of the adequately
notified applicant shall not c onstitute an impediment for the discussion, although it may
represent grounds for adopting a decision on postponing the discussion.

If, as a result of the discussion of the application, the program is qualified as
humanitarian assistance or charity, the aut horized body shall adopt a respective resolution
and forward it to the applicant within 5 working days.

The refusal of the application or the post ponement of the discussion thereof (if the
discussion asks for additional i nvestigation) shall be recorded, with a reference to the
respective reasoning. A respective excerpt from the transcript shall be forwarded to the
applicant within 5 working days.

14. The resolution on qualifying a program as humanitarian assistance or charity may,
upon the consent of the benefactor or the person implementing the program, may amend
the terms and conditions of program implemen tation as well as determine the procedure
for submission and acceptance of the results of the program and the person to implement
oversight over such results.

15. The resolution of the authorized body on qualifying a program as humanitarian
assistance or charity must cont ain the following information:

a) the heading of the resolution (the name of the body, the titl e of the resolution, the date
of adoption and the successive number thereof);

b) the applicant;

c) the bodies which have issued opinions of the program;

d) amendments to the terms and conditions of program implementation (provided the
authorized body has made such amendments pursuant to clause 14 of this regulation);

e) the procedure for submission and acceptance of the results of the program and the
person to implement oversight over such resu lts (provided these have been determined);

f) the volume and frequency of submission of information to be submitted to the
authorized body by the person implementing the program;

g) the state bodies, as well as legal and natural persons (with the exception of the
applicant), to whom a copy of th e resolution shall be forwarded.

An attachment to the resolution shall contain the program or the resolution shall contain a
brief recitation of the information referre d to in clause 3 of this regulation.

All pages of the program attached to the resolution shall bear the signature of an official
of the authorized body, affirmed by the stamp of the authorized body.

A separate resolution shall be adopted on qualifying every program as humanitarian
assistance or charity.

16. An application for the qualific ation of a program as humanitarian assistance or charity
may be refused, if:

a) the information and data in the application and the documents attached thereto do not
satisfy the requirements of this regulati on or are not substantiated or reliable;

b) it is deemed inexpedient, as a result of discussions, to grant tax privileges to the
program in question or for the government of the Republic of Armenia to act as a co-
financer of the program in question, in cluding the refund of the value added tax.

17. The government of the Republic of Armenia shall be entitled to annul or amend a
resolution adopted by the authorized body.

18. The organization implementing a humanitarian assistance or charity program shall, in
the course of program implementation and as a result thereof shall, in a stipulated
procedure, submit the followi ng to the authorized body:

a) information on the goods supplied, servic es rendered, work performed and measures
implemented by as well as for the organizati on within the quarter in question by the 25th
day of the month succeeding that quarter;

b) summary information on the implementati on of the program within a period of one
month following the completion of the program.

The requirement of this clause shall extend over all organizations implementing
humanitarian assistance and charity progr ams, including organizations implementing
programs qualified as humanitarian assistance or charity by the laws of the Republic of
Armenia and by the international agreements of the Republic of Armenia or those
directly enjoying tax privileges.

19. The authorized body shall exercise oversight over the implementation of
humanitarian assistance and charity programs:

a) through submission and acceptance of the re sults of the implementation of a program,
provided such a procedure has been determ ined by the program or by the resolution
qualifying the program as humanitarian assist ance or charity or by another legal act;

b) upon the initiative of the benefactor, the person implementing the program, other
interested parties, its own initiative or as the result of the examination of documents

submitted to the authorized body pursuant to this regulation, as well as of information
obtained through polls of the beneficiaries and of the results of inspections conducted in
conformity with the law of the Republic of Armenia “On the organization and conduct of
inspections in the organizations operating on the territory of the Republic of Armenia.”

20. In the event of failure to submit by the organization implementing the program to the
authorized body of information referred to in cl ause 18 of this regulation or the discovery
in submitted documents of information which does not correspond to the reality, or in the
event of existence in the operation of the organization implementing a program of
essential violations of the le gislation of the Republic of Ar menia, as well as if the
purposes of the program are not being met, the authorized body shall be entitled to
terminate its resolution qualifying the program as humanitarian assistance or charity and,
if such qualification has been granted by a legal act other than the resolution of the
authorized body, the latter shall be entitled to submit, in a stipulated procedure, a petition
to terminate such qualification to the body th at had initially adopted the legal act in
question.

21. The authorized body shall adopt a resoluti on, containing the appropriate reasoning, on
terminating the qualification of a program as humanitarian assistance or charity and, if
such qualification has been granted by a le gal act other than the resolution of the
authorized body, on petitioning to terminate su ch qualification. This resolution shall be
forwarded to the organization implementi ng the program within 5 working days.

22. One copy each of the resolution granting or terminating the qualification of a program
as humanitarian assistance or charity shall be forwarded within 5 working days to the
ministry of finance and economy of the Repub lic of Armenia, as well as to the state
bodies, legal and natural persons which should receive it pursuant to the resolution in
question.

In the event when the resolution determines a refund by the government of the Republic
of Armenia to the organization implementi ng the program of the amounts of the value
added tax calculated by the suppliers agains t the transactions of purchase of goods,
services and works on the territory of the Re public of Armenia, a copy of such resolution
shall, within 2 working days of its receip t by the ministry of public revenue of the
Republic of Armenia, be forwarded to the respective territorial tax inspection.

In the event when the resolution determines a refund by the government of the Republic
of Armenia to the organization implementi ng the program of the amounts of the value
added tax subject to be collected by the cu stoms bodies against goods imported through a
free circulation customs regime, as well as in the event of envisaging a transaction which
is entitled to tax privileges by law, a copy of such resolution shall, within 2 working days
of its receipt by state customs committee of th e Republic of Armenia, be forwarded to the
respective customs unit.

Endorsed by Resolution
of the government of RA
# 136 of 13 February, 2002

REGULATION FOR THE COMPENSATION OF THE AMOUNTS OF THE VALUE
ADDED TAX SUBJECT TO PAYMENT WITHIN THE FRAMEWORK OF HUMANITARIAN ASSISTANCE OR CHARITY PROGRAMS

1. This regulation shall define the procedure for the implementation of the refund of the
value added tax in the framework of human itarian assistance or charity programs.

2. Relations pertaining to the refund of the value added tax in the framework of
humanitarian assistance or charity programs sh all be regulated by the legislation of the
Republic of Armenia and by this regulation.

3. The amounts of the value a dded tax within the framework of humanitarian assistance
or charity programs subject to be collected by the customs bodies against goods imported
through a free circulation customs regime, as well as the amounts of the value added tax
calculated by the suppliers ag ainst the transactions of purchase of goods, services and
works on the territory of the Republic of Armeni a (hereinafter [collectively] referred to as
the “amounts of the value added tax”) may be refunded through the procedure stipulated
by Clause 15, Article 11 of the Law of th e Republic of Armenia “on the National Budget
of the Republic of Armenia of the year 2002.”

4. The amounts of the value added tax sha ll be refunded on the basis of a resolution
adopted by the government of the Republic of Armenia on the humanitarian assistance or
charity program in question in the event when the Republic of Armenia, in conformity
with the law of the Republic of Armenia on the National budget, appears as the co-
financer of those programs, in the volume not to exceed the amount of the value added
tax.

The government of the Republic of Armenia, together with adopting the resolution
referred to in the first paragraph of this cl ause, shall qualify the program in question as
humanitarian assistance or char ity, unless it has been qualified as such by a resolution of
the central commission on human itarian assistance of the government of the Republic of
Armenia (hereinafter referred to as the “commission”).

5. The issue of refunding the amounts of the value added tax within the framework of
humanitarian assistance or charity progr ams by the government of the Republic of
Armenia shall be submitted to the government of the Republic of Armenia pursuant to the
stipulated procedure for the submission of i ssues for discussion by the government of the
Republic of Armenia.

6. The amounts of the value a dded tax within the framework of humanitarian assistance
or charity programs shall be refunded to the organization implementing the program or to

the benefactor (hereinafter referred to as the “recipients of the refund”) in a procedure and
within the timeframe stipulated by this regulation.

7. The process of refund of the amounts of the value added tax shall be implemented by
the following procedure and timeframe:

a) following the adoption of the resolution by the government of the Republic of Armenia
on refunding of the amounts of the value added tax and the entry thereof into effect, the
recipient of the refund shall submit to the co mmission an application for the refund of the
amount of the value added tax (hereinafter referred to as the “application”).

The application shall contain a reference to the respective re solution of the government of
the Republic of Armenia. The application sha ll identify the transaction or transactions
with respect to which the refund of the amount of the value added tax should be made, as
well as the volume of the amount or amount s of the value added tax subject to be
refunded at the given point in time. In the ev ent when it is necessary to substantiate the
significance for the program in question of th e transaction requiring the refund of the
amounts of the value added tax, the applica tion shall have an attachment of the
appropriate documents. The following shall al so be attached to the application:

– the customs declaration, if the refund of amounts of the value added tax subject to be
collected by the customs bodies against goods imported through a free circulation
customs regime is sought;

– a copy of the tax invoice issued by the suppl ier, if the refund of amounts of the value
added tax calculated by suppliers against the tr ansactions of purchase of goods, services
and works on the territory of the Republic of Armenia is sought;

b) upon the receipt of the appl ication the deputy chairman of the commission shall verify
the conformity of the application with the information in the administrative registry of
humanitarian assistance and charity programs, as well as the substantiation of the claim
for the refund of the amounts of the value added tax (hereinafter referred to as the
“refund”) and shall submit to the chai rman of the commission a respective
recommendation to go ahead with the application;

If the application fails to conform with the information in the administrative registry of
humanitarian assistance and charity programs or if the claim for the refund is not
substantiated, the chairman of the commissi on shall accordingly notify the applicant in
writing within 2 working days following the receipt of the application. The applicant
shall thereafter have the right to submit a ne w application in a stipulated procedure.

If the application conforms with the information in the administrative registry of
humanitarian assistance and charity pr ograms and the claim for the refund is
substantiated, the chairman of the commission shall, within 2 working days following the
receipt of the applicat ion, submit to the ministry of fi nance and economy of the Republic
of Armenia an application to finance fr om the National budget of the Republic of

Armenia the amounts not exceeding the volume determined by the respective resolution
of the government of the Republic of Armenia. A separate application shall be submitted
with respect to every transaction. The custom s declaration or a copy of the tax invoice
issued by the supplier shall be attached to the application. The applicat ion shall be signed
by the chairman of the commission and the deputy chairman of the commission. An
imprint of the rubber stamp of the commissi on shall be affixed to the application;

c) on the basis of the documents referred to in the preceding sub-clause the ministry of
finance and economy of the Republic of Armenia, within a period of 2 working days
following the receipt thereof, shall process an expense item of the National budget of the
Republic of Armenia in the amount subject to be refunded, as the amount refunded to the
recipient of the refund and, concurrently, an income item of the National budget of the
Republic of Armenia, either as value a dded tax paid by upon importation of goods by the
recipient of the refund, or as payment made by the supplier with respect to the value
added tax calculated over the tr ansaction of the purchase of goods, services or works,
whereupon the latter shall not make remittances of the amounts of the value added tax
identified on the invoices of their suppliers on purchases directly pertaining to the
transaction in question and, in the event of importation of goods, of the amounts of the
value added tax collected by the customs bodies , and such amounts shall be added to the
production and turnover costs;

d) after processing the items referred to in the preceding sub-clause the ministry of
finance and economy of the Republic of Arme nia shall issue a document confirming the
payment:

in 4 copies, if the refund pertains to goods imported through the free circulation customs
regime;

in 5 copies, if the refund pertains to the purchase of goods, services or works in the
territory of the Republic of Armenia;

e) one copy of the document processed pursuant to the preceding sub-clause shall be kept
at the ministry of finance and economy of the Republic of Armenia.

If the refund pertains to goods imported th rough the free circulation customs regime, the
ministry of finance and economy of the Repub lic of Armenia shall forward one copy of
the document processed pursuant to the pre ceding sub-clause to the state customs
committee of the government of the Republic of Armenia, whereas 2 copies shall be
forwarded to the commission.

If the refund pertains to th e purchase of goods, services or works in the territory of the
Republic of Armenia, the ministry of finance and economy of the Republic of Armenia
shall forward one copy of the document processed pursuant to the preceding sub-clause
to the ministry of public revenue of the Republic of Armenia, whereas 3 copies shall be
forwarded to the commission;

f) the document received pursuant to the preceding sub-clause in the ministry of public
revenue of the Republic of Armenia or in the state customs committee of the government
Republic of Armenia pursuant to the preceding sub-clause,, shall, within 2 working days
following the receipt thereof, be forwarded to the respective territorial tax inspection or
customs unit;

g) one copy of the document received by th e commission pursuant to sub-clause “e,”
clause 7 of this regulation shall be kept in the staff of the commission, whereas the other
copies shall, within 2 working days followi ng the receipt thereof, be forwarded by the
chairman of the commission to the recipient of the refund;

h) if the refund pertains to goods imported through the free circulation customs regime
the recipient of the refund sha ll keep the copy of the documen t received pursuant to the
preceding sub-clause.

If the refund pertains to th e purchase of goods, services or works in the territory of the
Republic of Armenia the recipient of the re fund shall keep one the copy of the document
received pursuant to the preceding sub-clause and shall forward the other copy to the
supplier over the tran saction in question.

8. Ministerial normative acts on the enforcement of this regulation shall be adopted by
the ministry of finance and economy of the Re public of Armenia in consultation with the
ministry of public revenue of the Republic of Armenia and the state customs committee
of the government of the Republic of Armenia.

9. Documents referred to in this regulation sh all be kept for the duration stipulated by the
legislation of the Republic of Armenia.