Monthly, quarterly, and annual tax filing obligations for Armenian businesses

Annual Corporate Income Tax Return

Annual Financial Statement Filing

Individual Tax Returns

What happens if I miss a filing deadline in Armenia?

Missing filing deadlines in Armenia results in immediate penalties. You'll face a 5% penalty for each 15-day period of delay, plus daily interest of 0.075% on unpaid taxes. Unlike many jurisdictions, Armenia rarely grants extensions, so it's crucial to file on time. The penalties can accumulate quickly, making prompt compliance essential for financial management.

Can my company switch between tax systems during the year?

Generally, no. Companies can only apply for Simplified Tax System (STS) status within 20 days of registration or by February 20 for the following year. Once you exceed the revenue thresholds for two consecutive years, you're automatically moved to the general tax system. Changes typically take effect at the beginning of the tax year, not mid-year.

Are there special considerations for IT companies?

Yes, IT companies enjoy significant benefits under Armenia's high-tech support program (effective through 2032). Eligible companies pay only 1% turnover tax instead of standard rates, benefit from reduced income tax rates (10% vs 20% for employees), and receive various reimbursements for foreign specialists and training costs. Companies must qualify under government-established high-tech activity criteria.

Do I need to file monthly returns if I have no employees?

If you have no employees, you don't need to file payroll tax returns. However, you may still need to file VAT returns monthly (if VAT-registered) or turnover tax returns quarterly (if under STS). Individual entrepreneurs and companies without employees still have tax obligations based on their revenue and tax system classification.

When is a mandatory audit required?

Mandatory audits are required for companies that exceed certain size thresholds for two consecutive years. This includes companies with annual revenue over specific amounts, total assets above thresholds, or more than a certain number of employees. Joint stock companies and public interest entities typically require mandatory audits regardless of size. The audit must be completed by June 30, with audited statements published by the same date.

How are foreign companies with Armenian operations taxed?

Foreign companies operating through permanent establishments in Armenia are subject to the same tax rates and filing obligations as local companies on their Armenian-sourced income. They must register with Armenian tax authorities, obtain a TIN, and comply with all applicable filing deadlines. Non-resident companies without permanent establishments may be subject to withholding taxes on Armenian-sourced income, with rates potentially reduced under applicable tax treaties.

Can I use accounting software from other countries?

While you can use international accounting software, it must be configured to comply with Armenian accounting standards (IFRS) and tax requirements. The software must generate reports in Armenian language for official filings, calculate taxes according to Armenian rates, and interface with the State Revenue Committee's electronic filing system. Many international software providers offer Armenian localization modules for compliance.

What records should I maintain for tax compliance?

Maintain comprehensive records including all invoices, receipts, bank statements, payroll records, contracts, and correspondence with tax authorities. Electronic records are acceptable and often preferred. Keep documentation for at least 5 years, as this is the statute of limitations for tax audits. Ensure all records support your tax calculations and can be easily accessed during potential inspections or audits.