Taxation
Taxation

 

Profit Tax

Taxpayers: The profit tax in Armenia is paid by the residents (organizations established in the Republic of Armenia) and non-residents (organizations established in a foreign country).

Taxable profit: Profit Tax is calculated on the basis of taxable profit representing the positive difference between the total income from the sale of goods, services, assets, and other property, less total expenses that are deductible by law.

Profit tax rate: The general rate of Profit tax is 18% of the taxable profit.

Value-Added Tax

VAT payers: VAT payers are individuals and legal entities that carry out economic activities and perform VAT taxable transactions on the territory of the Republic of Armenia.

Transactions liable to VAT:

VAT rate: The rate of VAT is 20% of taxable turnover.

Turnover tax

The turnover tax substitutes VAT and profit tax for legal entities and VAT for private entrepreneurs

Turnover taxpayers: The turnover tax applies to taxpayers whose income in the previous year comes from the sale of goods and the provision of services does not exceed 115 million AMD, with some exceptions.

The taxable object: The taxable object is the turnover of goods delivered and the services provided for the reporting period and other income received. In determining income by taxable object, it is recognized by the accrual method.

Turnover tax rates: The rates of tax on turnover are as follows:

 

Type of Income

Rate

Income from commercial/trade activities

5%

Income from operating activities

3.5%

Rent income, interest, royalties, income from

sale of assets

10%

Income from notaries activities

10%

Income from other activities

5%

 

Income Tax

Taxpayers: In Armenia, Income Tax is paid by the residents of the Republic of Armenia and by non-residents. Residents are persons who have spent 183 days or more in Armenia during 12 months beginning or ending in a tax year, or whose vital interests are found in Armenia (house, family, property and business), regardless of citizenship. 

Income tax object: For residents of the Republic of Armenia, the tax object is taxable income received in Armenia and outside of Armenia, non-residents will have a taxable income tax exclusively on income received from Armenian sources.

  From 2020 From 2021 From 2022 From 2023
Personal
Income Tax 
23% 22% 21% 20%

 

Excise tax Tax object: The excise tax is paid to the State budget for the import of goods subject to the excise tax and for the realization of these goods produced in the territory of the Republic of Armenia. Excise tax is payable on alcoholic beverages, tobacco products and petroleum products.

Excise tax rate: The rate depends on goods

Property tax Tax object: Property tax is assessed and collected at the municipal level and is paid bi-annually by landowners and the permanent users of state-owned land. The land cadastre (valuation system) is used to determine the value of the land.