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Personal Taxation
 
 
 

General

Individuals, regardless of their citizenship, that are considered Armenian tax residents (ie. spending more than 183 days of 12 months period starting or ending in a calendar year, or whose centre of vital interests is in the Republic of Armenia) are paying Income Tax at the following rates:











Income Tax withholding by a tax agent:

Up to AMD 80,000 : 10%
Over AMD 80,000 : AMD 8,000 + 20% of excess over AMD 80,000

Income not withheld by a tax agent:

Up to AMD 960,000 : 10.00%
Over AMD 960,000 : AMD 96,000 + 20% of excess over AMD 96,000

Non-residents are taxed on Armenian source income only.

Taxpayers are liable to Income Tax on:

• income from employment;
• income from entrepreneurial activity;
• royalty;
• leasing income;
• other incomes.

The main exemptions relate to the following income:

• income from the sale of own property;
• dividends;
• inheritance or gift;
• insurance compensation;
• other incomes.

Salaries and wages received in cash or in kind are taxable, except the following:

• compensation income as provided by the legislation;
• food and drinks at the work place provided by the employer;
• scholarships and stipends paid by the state or registered NGOs;
• income derived from the sale of agricultural products.

The personal monthly deduction is AMD 20,000.

Special Regulation on Income Tax for Armenian Resident Non-Citizens

Income, excluding income from entrepreneurial activity, received by non-nationals must be withheld at 5% (insurance benefits received from insurance and income received from freight) or 10% (interests, royalties, lease payments, capital gains and other passive income, including income from entrepreneurial activity).

Income from salaries and wages is taxed at progressive rates ranging from 10 to 20%, without making personal allowances. Amount of tax withheld at these rates shall be considered as the final amount of the income tax, with the exception of cases when the non-national is a resident or implements entrepreneurial activity in the Republic of Armenia. In those cases the non-citizens must apply to the Tax Authorities and file tax return.

Withholding Taxes

Personal income tax on salaries and wages is withheld by employers. Royalties, income from lease of property are subject to withholding tax at 10% rate, without taking into account of allowances.

Interests received after 1 July 2001 will be withheld at 5% rate and rate will be further increased to 10% for interests received after 1 July 2002. Interests will be withholded without taking into account of allowances too.

Other Taxes

Property Tax and Land Tax.

 

 
 


 



 


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