Taxation System
Armenia's tax system is transparent, efficient and business-friendly with relatively low tax rates and a number of tax incentives in use. According to Armenia's tax system structure, most of the taxes are federal and are paid directly to the budget.
Value-added Tax (VAT)
20%
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:
- Delivery of goods for compensation;
- Provision of services;
- Import of goods under the customs procedure for domestic consumption;
- Import of the products from the EEU Member States to the Republic of Armenia having the status of EEU product
Income Tax
20%
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 a tax year, or whose vital interests (house, family, property and business) are found in Armenia, regardless of their 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.
Profit Tax
18%
The profit tax in Armenia is paid by the resident and non-residents companies.
Taxable profit:
Profit tax is determined by calculating the taxable profit, which is the positive variance between the total income derived from the sale of goods, services, assets, and other property, minus the deductible expenses as prescribed by law.
Turnover Tax
1.5-10%
The turnover tax substitutes VAT and profit tax for legal entities and VAT for private entrepreneurs.
The taxable object:
The turnover tax is applicable for taxpayers with previous year revenues from the sale of goods and provision of services not exceeding 115 million AMD (around 280 000 USD). The lottery activities are taxed 25% of the income.
Dividend Tax
5%
In Armenia, received dividends are taxable at a 5% rate, unless the rate is reduced under a tax treaty.
The taxable object:
The taxable objects for dividend tax include any cash dividends, bonus shares, or other forms of profit distribution received by individuals or entities from both resident and non-resident companies. Income tax on dividends is refundable if the dividends are reinvested in the same resident company in the same tax year they are received.
Real Extate Tax
0.05-1.5%
Real estate tax is imposed on the ownership or possession of real estate properties, including land and buildings.
The taxable object:
Individuals or entities that own or possess real estate properties are liable to pay property tax, which is calculated based on the assessed value of the properties. The real estate tax rate for agricultural land is set at 15%.
Excise Tax
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 beverages containing alcohol, tobacco and petroleum products.
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