Leverage Armenia's 1% IT Turnover Tax for Your Global Tech Business

Qualifying activities include software development, IT consulting, digital content creation, data processing, cloud computing services, artificial intelligence development, blockchain technology, IoT development, and similar high-tech activities included in the government-approved list. To qualify, at least 90% of your company's revenue must come from these approved activities. The full list is maintained and periodically updated by Armenia's Ministry of High-Tech Industry.

If your company exceeds the AMD 115 million (approximately $300,000) turnover threshold during a tax year, you are required to notify tax authorities within 20 days. At that point, you must transition to the general taxation system, which includes:

• Registration for VAT (20%)
• Transition to profit tax (18%)
• Implementation of more comprehensive accounting requirements

The transition typically applies from the beginning of the quarter following when the threshold was exceeded. However, companies on the general taxation system can still benefit from other tech incentives, such as the 200% salary deduction for technical staff.

With proper preparation and expert guidance, the basic company registration process typically takes 2-3 business days. However, the complete process including high-tech sector registration, tax registration, and bank account setup usually takes 2-3 weeks in total. The process includes:

1. Company name verification (1 day)
2. Preparation and submission of registration documents (1-2 days)
3. State registration of the legal entity (1-2 days)
4. Tax registration and turnover tax election (2-3 days)
5. High-tech sector registry application (5-7 days)
6. Bank account opening (3-5 business days)

Our service streamlines this process by managing all documentation and submissions on your behalf, minimizing delays and ensuring proper compliance with all requirements.

For most tech companies, physical presence in Armenia is not required for registration or ongoing operations. The entire registration process can be completed remotely with properly executed power of attorney documents. Our service can handle:

• Document preparation and submission without your physical presence
• Legal representation before Armenian authorities
• Providing a legal address in Armenia (if required)
• Ongoing compliance management

While physical presence is not mandatory, some banks may require at least one in-person meeting for the initial account opening. However, certain banks have digital onboarding options that can be completed remotely. We can advise on the most suitable banking solution based on your specific needs.

Registration with Armenia's high-tech sector registry requires submitting comprehensive documentation through the Ministry of High-Tech Industry's electronic platform (operational from July 1, 2025). The main required documents include:

• Company registration certificate
• Company charter and founding documents
• Detailed business plan describing high-tech activities
• Description of products/services and their technical specifications
• Information about technical staff qualifications and roles
• Revenue projections and sources
• Declaration confirming that at least 90% of revenue will come from qualifying activities

Our service helps prepare all required documentation and ensures it meets the Ministry's specific requirements, maximizing the likelihood of successful registration.

Armenia offers two main tax incentives for tech companies, each advantageous in different scenarios:

The optimal choice depends on your company's specific financial structure, growth trajectory, and profit margins. Our advisory service includes detailed financial modeling to determine which tax regime will be most advantageous for your specific business model.

To maintain eligibility for the 1% turnover tax rate, companies must fulfill several ongoing compliance requirements:

• Quarterly Turnover Tax Returns - Filed electronically and paid within 20 days after each quarter
• Annual High-Tech Registry Renewal - Confirmation that the company continues to meet qualification criteria
• Revenue Source Monitoring - Maintaining documentation proving that at least 90% of revenue comes from qualifying activities
• Revenue Threshold Compliance - Ensuring annual turnover remains below AMD 115 million
• Annual Financial Statements - Simplified financial reporting required for all companies

Our ongoing compliance service manages these requirements to ensure your company maintains its advantageous tax status while minimizing administrative burden on your team.