Armenian Tax Service is a subsidiary of the State Revenue Committee, which is responsible for tax and revenue services on behalf of the Armenian government. It is headquartered in Yerevan. Armenia’s tax administration is regulated by the Armenian Tax Service, which is the supreme authority. The department is responsible for tax collection (including personal income tax and corporate tax), preventing tax fraud and infractions, training tax officers, and conducting tax reform projects, including upgrading Armenia’s tax mechanisms. On 2 October 1991, the department was founded. Armenia is a member of the International Monetary Fund and the Intra-European Organisation of Tax Administrations. In February 2020, Armenia ratified the Convention on Mutual Administrative Assistance in Tax Matters.

Employers and other businesses that pay income to individuals (“tax agents”) are typically required to withhold and pay taxes on behalf of these individuals in Armenia. As a result, people are exempt from filing annual tax returns unless they receive taxable income that was not disclosed by a tax agent. Individuals in Armenia are taxed on their income. Income earned in foreign countries is taxable in Armenia only if the individual is a resident, defined as spending more than 183 days in Armenia during 12 months. Dividends, capital gains from the sale of shares, insurance payments, farming income, and some other sources of income are tax-exempt. Generally, passive income (interest, rent, and royalties) is taxed at 10%.

Types of Taxes 

• Income Tax – Income earned from employment is taxed at the following rates:
  • Monthly earnings of up to 120,000 AMD – 24.4%
  • Monthly income of between 120,000 and 2 million AMD – 29,280 AMD and 26% of the amount over 120,000 AMD
  • Income over 2 million AMD/month – 518,080 AMD and 36% of the amount over 2 million AMD

Income earners also must pay social security payments. The tax rate is 5% on income up to 500,000 AMD and 10% on amounts greater than 500,000 AMD. Until July 1, 2020, the maximum amount of social security benefits will remain AMD 25,000/month. Additionally, you will be required to pay a monthly stamp fee of 1000 AMD to the Insurance Foundation For Servicemen. Armenia has no gift or inheritance taxes, nor does it have a net worth tax. Generally, real estate and other transactions between individuals are tax exempt. However, individuals who sell non-residential real estate or who acquire and dispose of more than two residential properties or vehicles within one calendar year may be subject to 20% VAT.

• Value Added Tax (VAT) – This is set at 20% and amounts to nearly half of the tax revenues in our budget
• Excise Tax- Certain products, including cigarettes, are subject to excise tax. Since 2020, this tax has increased by 3% yearly. Please refer to the applicable statutes – click here for them.
• Property Tax- For public and industrial buildings, a 0.3% tax comes into play
• Corporate Tax – Set at 18%, this number has not been changed in years. Businesses with a turnover of more than $141,000 are subject to a Turnover Tax of 1% on commerce, 3.5 percent on manufacturing, and 5% on all other operations. Family-owned firms with combined annual revenue of less than $300,000 are excluded. If a foreign company establishes a branch in Armenia, it is subject to an 18% branch tax. Profits derived from asset transactions are subject to an 18 percent capital gains tax. A Capital Gains tax of 18% is imposed on profits generated from assets transfers
• Personal – There are now no taxes on inheritance or gifts, nor on land capital gains, property sales to other individuals, government bonds, equity securities, or securities representing an investment in a relevant investment fund.
• Capital Gains Tax – If a property is sold by an individual to a company/organization, there is a 10% tax but If a property is sold for business purposes, or acquired by a developer, a 20% tax.
• Social Security Tax – Social security taxes are based on 5% of income up to 500,000 AMD and 10% of income above 500,000 AMD. Until July 1, 2020, the maximum monthly payment for social security will remain at 25,000 AMD. At 63 years of age, the basic old-age pension begins.
• Property Tax – In Armenia, property taxes are calculated as a percentage of the initial purchase price and are revalued every three years; they include the land’s worth. and all structures built on the parcel. The property tax is varied based on worth. no taxes on constructions priced at 3000000 AMD and up to 127.100 AMD for a structure valued at 40.00000 AMD, with an extra 1 percent due after that As of January The Tax Code as amended on January 1, 2021, to impose the following yearly property taxes on flats priced at:

• Up to 10 mln. AMD – 0,05% of tax
• 10 to 25 mln. AMD – a tax of 5,000 AMD plus a percentage increase of 0.1 percent if the total surpasses 10 million.
• 25 to 47 mln. For amounts greater than or equal to $25,000, an additional tax of $2,000 will be applied.
• 47 to 75 mln. Over 47 million AMD will result in an additional 0.4% tax.
• 75 to 100 mln. AMD – 176,000 AMD tax plus 0,6 percent if exceeds 75 mil.
• 100 mln. AMD and more – 326,000 AMD tax plus 1 percent if surpasses 100 million.

Taxes on houses would be valued at;

• Up to 7 mln. AMD – 0,05% of tax
• 7 to 23 mln. AMD – 3500 AMD tax plus 0,1 percent if surpasses 7 mln.
• 23 to 50 mln. AMD – 19,500 AMD tax plus 0,2 percent if exceeds 23 mln.
• 50 to 85 mln. There is an AMD tax of 75,000 AMD. If the amount of AMD exceeds 50 million, there is a 0.4% tax added to that.
• 85 to 120 mln. When you make more than 85 million AMD you have to pay 213,500 AMD tax, plus 0.6% if you make more.
• 120 mln. AMD and more: 423,500 AMD tax plus 1% if more than 120 mln. AMD.

• Car Sales Tax –  To buy and sell a car in 2020, the tax on each horsepower will be 1 percent of the price. This can’t be less than 150 drams for each horsepower. This tax burden arises if the sale occurs before the 365 days following the acquisition. 
• Land Tax- Land tax is set at 15% for land deemed for agricultural purposes. Residential and non-residential zones pay 1 percent tax on industrial land, while land used for housing in rural areas (villages) pays 0.6 percent. Land used for housing in cities is taxed at 1 percent. That is forest; 1% is non-agricultural land.

ADDITIONAL INFO

1. Rustam Badasyan

Head of the state revenue committee

2. First Deputy

Artyom Smbatyan

3. Deputies:

Artur Manukyan

Shushanik Nersisyan

Ashot Muradyan

Tsovinar Soghomonyan

4. Address: 3 M. Khorenatsi, Yerevan

    Tel.: (060) 544 444 (060) 544 657

    URL: https://www.petekamutner.am/

E-mail: secretariat@customs.am, secretariat@taxservice.am