Verified Facts
Tax rates in Armenia range from 20% to 23% for personal income tax, with a corporate tax rate of 18%, and the country has a relatively straightforward tax system for both residents and expatriates.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Armenia has a territorial taxation system, where individuals are taxed on their income earned within the country, regardless of their nationality or residence. However, residents are also subject to tax on their worldwide income, with some exceptions. To be considered a tax resident in Armenia, an individual must have a permanent home in the country, or stay in the country for at least 183 days in a calendar year. The tax system in Armenia is relatively simple, with a flat corporate tax rate and a progressive personal income tax rate.
The Armenian tax system is governed by the Tax Code, which was adopted in 1997 and has undergone several amendments since then. The tax authorities in Armenia are responsible for collecting taxes, and taxpayers can file their tax returns online or through a tax agent. The tax year in Armenia runs from January to December, and taxpayers are required to file their tax returns by April 1st of the following year.
Personal Income Tax
| Income Bracket (AMD) | Tax Rate |
|---|---|
| 0 - 120,000 | 20% |
| 120,001 - 250,000 | 22% |
| 250,001 - 500,000 | 23% |
| 500,001 - 1,000,000 | 23% |
| above 1,000,000 | 23% |
| The tax rates in Armenia are relatively low, and there are some deductions and allowances available to taxpayers. For example, taxpayers can deduct mortgage interest and charitable donations from their taxable income. Taxpayers are required to file their tax returns online or through a tax agent, and the deadline for filing tax returns is April 1st of the following year. Taxpayers can also claim a personal allowance of AMD 60,000 per year, which is exempt from tax. |
Corporate & Business Tax
- The corporate tax rate in Armenia is 18%, which is relatively low compared to other countries in the region.
- Small businesses with an annual turnover of less than AMD 100 million are eligible for a reduced corporate tax rate of 15%.
- Free economic zones have been established in Armenia to attract foreign investment, and companies operating in these zones are eligible for tax exemptions and other incentives.
- Companies are required to register with the tax authorities and obtain a tax identification number before commencing business operations.
- Companies are also required to file their tax returns online or through a tax agent, and the deadline for filing tax returns is April 1st of the following year.
VAT / Sales Tax
- The standard VAT rate in Armenia is 20%, which applies to most goods and services.
- A reduced VAT rate of 10% applies to certain goods and services, such as food and children's clothing.
- Some goods and services are exempt from VAT, such as healthcare and education services.
- Tourists can claim a refund of VAT paid on goods purchased in Armenia, provided they have a receipt and the goods are taken out of the country.
For Expats & Foreign Workers
- Expatriates who are tax residents in Armenia are subject to tax on their worldwide income, but may be eligible for a foreign tax credit.
- Armenia has a network of double taxation treaties with 42 countries, which can help to reduce the tax burden on expatriates.
- Expatriates are required to register with the tax authorities and obtain a tax identification number before commencing work in Armenia.
- Expatriates may be eligible for a social security exemption if they are covered by a social security system in their home country.
- Remittances made by expatriates to their home country may be subject to tax, but may also be eligible for a tax exemption.
- Expatriates who are non-residents in Armenia are subject to a withholding tax on income earned in the country, such as dividends and interest.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to tax in Armenia, but may be eligible for a tax exemption.
- Cryptocurrency is considered a type of property in Armenia, and gains from the sale of cryptocurrency are subject to capital gains tax.
- Taxpayers are required to report their investment income, including gains from the sale of cryptocurrency, on their tax return.
- Taxpayers may be eligible for a tax deduction for losses incurred on the sale of cryptocurrency or other investments.