About Mariam

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So far Mariam has created 23 blog entries.

Disability Fund Payments

Disability fund payments are social security payments the purpose of which is to promote the integration of disabled people in the Armenian labor market. They are collected by the Armenian government from organizations with more than 100 employees and used specifically for addressing social and health issues faced by disabled people. The law requires such companies [...]

By | 2015-10-04T17:38:01+04:00 September 3rd, 2015|Taxation|Comments Off on Disability Fund Payments

Advertisement & Marketing Regulations and Penalties

Armenian regulations of marketing are mostly found in the Law on Advertisement and are enforced by designated bodies, such as the National Commission on Television and Radio or local authorities. The Code of Administrative Offenses provides the following penalties for violations of marketing regulations: Failure to comply with official notices and warnings regarding outdoor advertisement - [...]

By | 2015-10-04T18:29:53+04:00 August 23rd, 2015|Business Law|Comments Off on Advertisement & Marketing Regulations and Penalties

Responsibility for Immigration Violations in Armenia

The Armenian Constitution, the law on Foreigners, the international agreements of Armenia, and other legal acts regulate the issues related to immigration, and the Code of Administrative Offences provides penalties for immigration violations. The Chapter 2 of the law on Foreigners (articles 6 - 10) regulates the visa obtaining procedures, visa types, revocation of visa and entry [...]

By | 2015-08-22T21:07:33+04:00 August 22nd, 2015|Immigration|Comments Off on Responsibility for Immigration Violations in Armenia

The Protection of Economic Competition

The State Commission for the Protection of Economic Competition performs the following tasks: protects and promotes free economic competition to contribute to the development of entrepreneurship and protect the customers' rights and interests, ensures appropriate environment for fair competition, prevents, precautions, and restricts anti-competitive activities, controls the economic competition protection. In order to achieve these goals, [...]

By | 2015-08-20T11:58:24+04:00 August 17th, 2015|Uncategorized|Comments Off on The Protection of Economic Competition

Official Language in Armenia

Armenian is the official language of Armenia. According to the law on Language, state bodies, enterprises, institutions and organizations (regardless of ownership) must maintain their documentation (including posters, letterheads, labels, stamps, seals, international mail envelopes, ads) in Armenian, coupled with other languages if necessary. Furthermore, the documentation of foreign government agencies, enterprises, institutions and organizations that is [...]

By | 2015-08-14T13:22:27+04:00 August 14th, 2015|Uncategorized|Comments Off on Official Language in Armenia

Company Management in Armenia

Company management is the organization and coordination of the activities of the business in order to achieve the defined objectives. The most common form of management is the individual executive director. For both JSCs and LLCs, the General Meeting of Shareholders (Participants) has the highest power in the company. The shareholders (participants) have a right to [...]

By | 2017-01-30T13:26:28+04:00 August 10th, 2015|Corporate Law|Comments Off on Company Management in Armenia

Employment and Dismissal in Armenia

An employment contract is an agreement between the employee and the employer that specifies the rights and obligations of each party. According to the Labor Code of Armenia, employment contracts must contain the following information: the date, month, year, and place of signing the contract, the employees name (including their patronymic if they wish), the employing [...]

By | 2015-08-07T12:39:33+04:00 August 7th, 2015|Business Law|Comments Off on Employment and Dismissal in Armenia

Licensing in Armenia

In order to legally engage in certain kinds of activities, individuals (including Individual Entrepreneurs (IE)) and legal entities have to obtain a license that gives them a permission to do so. License fees replace VAT and Income tax for individuals (including IE), and VAT and Profit tax for legal entities. The rates of license fees depend [...]

By | 2017-01-30T13:26:28+04:00 July 28th, 2015|Taxation|Comments Off on Licensing in Armenia

Power of Attorney in Armenia

A power of attorney (POA) is a written authorization to represent or act on another's behalf in private affairs, business, or some other legal matter. Armenian law does not require the principal (the person authorizing another to act) to give a POA in the form of a single document. But in practice it is almost [...]

By | 2017-01-30T13:26:28+04:00 July 25th, 2015|Uncategorized|Comments Off on Power of Attorney in Armenia

Virtual Office in Armenia

Armenian law does not require businesses to own or rent brick and mortar offices or employ staff. Thus many local companies, especially foreign-owned, may choose to use virtual offices. Virtual offices allow their users to do business without having to rent, own or otherwise occupy the business addresses used for their registration or business correspondence. With a [...]

By | 2015-07-13T02:34:11+04:00 July 12th, 2015|Business Law|Comments Off on Virtual Office in Armenia

Registering as Individual Entrepreneur in Armenia

It is possible for a person (including a foreign citizen) to register as individual entrepreneur (sole proprietor) in Armenia to do business without forming a company. It is important to remember that in Armenia only individuals registered as entrepreneurs are allowed to engage in business activities. Failure to register may result in very harsh administrative and [...]

By | 2017-01-30T13:26:28+04:00 July 9th, 2015|Business Law|Comments Off on Registering as Individual Entrepreneur in Armenia

Company Liquidation

Company liquidation can happen for a number of reasons: by the decision of its founders (shareholders, participants) (including on expiry of the period or the accomplishment of the objectives for which it was established) by a court decision to invalidate its registration based on violations of law during the registration by a court ruling for performing [...]

By | 2017-01-30T13:26:28+04:00 July 7th, 2015|Business Law|Comments Off on Company Liquidation

Customs benefits for permanent residents

Individuals arriving to Armenia for permanent residence (including refugees) can import their personal property without paying customs payments (including VAT).  To be eligible for these benefits, the person has to have resided outside of Armenia for at least five consecutive years (except for refugees). This requirement will be met if the person has lived outside of Armenia for 184 and [...]

By | 2017-01-30T13:26:28+04:00 July 1st, 2015|Taxation|Comments Off on Customs benefits for permanent residents

Opening a bank account in Armenia

There are 21 Banks in Armenia (all of them are private, some of these banks are international, e.g. ACBA-CREDIT AGRICOLE BANK (French Credit Agricole Banking Group holds 28% of its shares), Areximbank - Gazprombank Group, Bank Anelik (100% of its shares belong to Lebanese Credit Bank), Byblos Bank Armenia (EBRD – 25%+1 share, OFID – 10%, [...]

By | 2017-01-30T13:26:28+04:00 June 18th, 2015|Uncategorized|Comments Off on Opening a bank account in Armenia

Tax Benefits in Republic of Armenia

The Tax Legislation of Republic of Armenia offers tax benefits for many types of economic activities for both resident and non-resident taxpayers. Some of the most notable tax benefits include the benefits defined by the law on State Support of IT Sphere, the recent changes to the law on Profit tax, and the tax exemption [...]

By | 2017-01-30T13:26:28+04:00 June 15th, 2015|Corporate Law, Taxation, VAT|Comments Off on Tax Benefits in Republic of Armenia

Corporate Profit Tax in Armenia

The headline rate of corporate profit tax in Armenia is 20% for resident companies, and, depending on the type of the taxable income, 0-20% for non-residents. The law on Profit tax provides tax benefits (5% and 2%) for major exporters that deal exclusively in export, if the cost of exported goods exceeds 40 billion and [...]

By | 2015-06-10T21:16:59+04:00 June 9th, 2015|Corporate Law, Taxation|Comments Off on Corporate Profit Tax in Armenia

Thin capitalisation rules in Armenia

According to "thin capitalisation" rules in Armenia, the maximum amount of interest that may be recognised as an expense when accounting taxable income is limited to the double of the amount of company's net assets if the interest is paid to entities other than banks and credit institutions, and, ninefold of its net assets if [...]

By | 2015-05-27T00:02:36+04:00 May 27th, 2015|Taxation|Comments Off on Thin capitalisation rules in Armenia

Profit tax rates for non-residents

Dividends, royalties, interest, and property lease payments paid by a locally resident company to a non-resident are subject to a withholding tax at a rate of 10%. The local company making the payments deducts the amount of withholding tax at the source of paying income. However, if the recipient of the payment is a resident [...]

By | 2015-05-25T19:01:00+04:00 May 25th, 2015|Taxation|Comments Off on Profit tax rates for non-residents

A Q&A about transaction taxes in Republic of Armenia

Q: Are there any documentary taxes in Armenia? A: Armenia does not levy any documentary taxes on documents evidencing transactions.   Q: Is there Value Added Tax (or a similar tax)? If so, at what rate or rates? A: A person (legal entity, individual entrepreneur, etc. ) is considered a VAT payer if they carry out entrepreneurial [...]

By | 2017-01-30T13:26:28+04:00 May 20th, 2015|Taxation, VAT|Comments Off on A Q&A about transaction taxes in Republic of Armenia

A Q&A about the bilateral tax treaties of Republic of Armenia

Q: Do the double taxation avoidance treaties of Republic of Armenia follow the OECD or another model? A: While the majority of the treaties follow the OECD model, there are also exceptions, such as the one with Switzerland.   Q: Do treaties have to be incorporated into domestic law before they take effect? A: According to the [...]

By | 2017-01-30T13:26:28+04:00 May 19th, 2015|Taxation|Comments Off on A Q&A about the bilateral tax treaties of Republic of Armenia

Double Tax Avoidance Agreements

The Republic of Armenia has 41 income tax treaties and agreements currently in force. The list of treaties is available below: Austria (EN) Belarus (RU) Belgium (EN) Bulgaria (EN) Canada (EN) China (EN) Croatia (EN) Cyprus (EN) Czech Republic (EN) Estonia (EN) Finland (EN) France (EN) Georgia (RU) Germany (EN, DE) Greece (EN) Hungary (EN) [...]

By | 2015-05-15T19:24:48+04:00 May 15th, 2015|Taxation|Comments Off on Double Tax Avoidance Agreements

Work Permits for Foreigners

The National Assembly of RA passed the bill about amendments to the law on Foreigners that regulates issues related to work permits for foreigners. The bill clarifies a number of subjects, the following points being the most notable: the employer applies to the Government appointed authorized body for a work permit for the foreign employee they [...]

By | 2017-01-30T13:26:28+04:00 May 14th, 2015|Corporate Law|Comments Off on Work Permits for Foreigners

Tax Benefits for IT Start-ups

According to tax legislation, for taxpayers certified and operating under the law on State Support of IT Sphere, the income obtained from the realization of the IT products is considered deductible income (law on Income tax), and, at the same time, from the standpoint of the law on Profit tax, it is not a part [...]

By | 2017-01-30T13:26:28+04:00 May 12th, 2015|Taxation|Comments Off on Tax Benefits for IT Start-ups