A diverse range of tax and customs incentives to foster investment and stimulate business growth
Tax exemption for activities in bordering and other communities
In order to promote economic activities in bordering communities, a range of tax exemptions is available. This includes exemptions from Value Added Tax (VAT), profit tax and income tax. Furthermore, for investment projects exceeding 2 billion AMD (approximately 5 million USD), within the scope of operations in the Dilijan community and adjacent territories of Tavush region of Armenia, there are additional exemptions from both VAT and profit tax.
Customs duties exemption for import of certain goods and equipment
To encourage export-oriented investment projects, the Armenian government offers customs duties exemption on the import of equipment and raw materials from non-EAEU (Eurasian Economic Union) countries within the framework of export-oriented investment projects. Additionally, there is a 0% Value Added Tax (VAT) applied to the majority of production equipment and raw materials imported for further processing.
Tax benefits for the IT sector
The IT sector enjoys specific tax benefits aimed at fostering its growth and development. These benefits include exemption from profit tax, allowing certified IT start-ups to retain more of their earnings for reinvestment and expansion. Additionally, there is a reduced income tax rate of 10% applied to employees' salaries, providing a favorable tax environment for both companies and their employees.
Tax benefits for the medical sector
The medical sector benefits from significant tax advantages to support its operations and ensure affordable healthcare services. These benefits include exemption from Value Added Tax (VAT) for the sale and provision of prosthetic and orthopedic accessories, medical equipment, medical products and medical assistance services. By exempting VAT on these essential healthcare goods and services, the government aims to reduce costs and make them more accessible to the public.
To explore the comprehensive list of tax and customs incentives, please view our Investment Guide below.
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