Taxes for IT companies in Armenia
New legislative changes that allow IT companies to pay taxes at a rate of 1% until December 31, 2031
Before moving on to tax incentives, you should know that a company registered in Armenia can operate under one of two tax regimes: the general taxation regime or the simplified regime.
General regime:
* Income tax: 18%
* VAT: 20%
Simplified regime: Turnover tax (rate depends on the type of activity). Conditions:
1. Submit an application within 20 days from the date of registration
2. Annual turnover ≤ 115 million AMD
Currently, tax incentives are available to companies operating under both the simplified and general regimes.
General regime:
* Income tax: 18%
* VAT: 20%
Simplified regime: Turnover tax (rate depends on the type of activity). Conditions:
1. Submit an application within 20 days from the date of registration
2. Annual turnover ≤ 115 million AMD
Currently, tax incentives are available to companies operating under both the simplified and general regimes.
Simplified regime
Under tax incentives, income from activities included in the list of high-tech activities is taxed at a rate of 1%.
Under tax incentives, income from activities included in the list of high-tech activities is taxed at a rate of 1%.
General regime
- Deduction: 200% of salaries of employees engaged in high-tech activities.
- The amount of deductions cannot exceed 50% of taxable income
- Applies only to residents of Armenia.
Other available benefits
- Benefits for
migrantsUntil December 31, 2025, for migrants performing professional work and considered employees of a high-tech sector company, the state provides the company with support in the amount of 60% of the income tax calculated from their salaries and equivalent payments, or remuneration under a civil law contract. From January 1, 2026, the benefit will be provided not to the company, but to the migrant himself. - Benefits for new employeesFor new employees performing professional work and working in the high-tech sector, the state provides the company with support in the amount of 60% of income tax on salaries and equivalent payments or remuneration under a civil law contract. Support is provided for three calendar years from the date of commencement of the employee's professional activity.
- Benefits for employee training and retrainingState support for training and retraining of employees performing professional work is provided to companies in the high-tech sector in the amount of 50% of the income tax calculated for the reporting period from the salary and equivalent payments of the employee being trained, or remuneration under civil law.
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These benefits are valid until December 31, 2031. Although everything seems very simple at first glance, there are a number of nuances that need to be considered when planning your business structure and choosing a taxation regime. If you have any questions, please write to the link below.
CONTACTS
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umostarm@gmail.com
umostarm@gmail.com
Armenia, Yerevan
UMOST: A. Tigranyan 5, 89
USA, FL, Miami
WESTFIELDATLAS Inc.: 1150 Nw 72nd Ave Tower 1 St 455. 9845
UMOST: A. Tigranyan 5, 89
USA, FL, Miami
WESTFIELDATLAS Inc.: 1150 Nw 72nd Ave Tower 1 St 455. 9845
