How much are corporate taxes in Armenia?

Armenia has a flat corporate tax rate of 20%, with a worldwide tax base. This applies to both local companies and branches or subsidiaries of foreign companies.

Turnover tax also exists, where it is 1% on trade, 3.5% on manufacturing, and 5% on all other activities. This is optional. You choose between turnover tax and profit tax + VAT.

You can only choose turnover tax if your annual sales do not exceed 58.35 million AMD. If you own property through your business, property and land taxes are applicable. Employee income tax is 24.4% on gross numbers up to 120,000 AMD, increasing to 26% + 29,280 AMD up to 2 million AMD, where it increases once again to 36% + 518, 080 AMD for any salary exceeding that amount. This can also be paid online, along with the 20% VAT. These numbers are expected to change slightly come January 2018.

How do I pay my taxes?

In Armenia, employers and other entities paying income to individuals (“tax agents”) are normally required to withhold taxes and pay them to the government on behalf of these individuals. As a result, individuals do not have to file annual tax returns unless they have received income that is taxable and has not been declared by a tax agent.

Do I have to register somewhere?

As a general rule, you do not have to register with tax authorities and obtain a taxpayer ID. However, you may be required to register as an “individual entrepreneur” and obtain a taxpayer ID if you engage in “entrepreneurial activity,” i.e. independent and periodic sale of goods or services with the purpose of making profit. If you are an individual entrepreneur, you may qualify for one of the forms of simplified taxation for small and medium enterprises (e.g. turnover tax) that replace the regular income tax.

Do I have to file taxes?

You do not have to file tax returns unless you have received income that is taxable in Armenia and has not been accounted for by the entity that paid the income, e.g. your employer, customer etc.

What do I do if I’m contacted or visited by tax authorities?

Interactions between tax authorities and taxpayers are strictly regulated and can take place only within proper administrative or criminal proceedings. Inspections on the premises of the taxpayer must be specifically authorised in writing by the head of the competent tax office. The taxpayer should receive a notice on inspection at least three business days in advance unless such notice would defeat the purpose of inspection (e.g. checking compliance with regulations on registering employees, use of foreign currency, issuance of payment receipts etc.). Any action or inaction of tax officials may be appealed administratively to the superior body or judicially by filing a claim with the administrative court.

This section is cited from RepatArmenia Foundation.