The Republic of Armenia has a well-defined tax system governed by its Tax Code and Constitution. According to the Tax Code, taxes are mandatory and gratuitous payments made by taxpayers to the state and municipal budgets. These payments are essential for fulfilling state and public needs and must be made according to specific regulations and deadlines set by the Tax Code.
The Armenian Constitution mandates that everyone must pay taxes, duties, and other obligatory payments to the state or municipal budget in accordance with the law. The Armenian Government is responsible for implementing tax policy, which it does through the State Revenue Committee. This committee operates under the guidelines of the RA Constitution and the RA Tax Code. It is the primary tax authority in Armenia, responsible for overseeing resident organizations and individuals. It ensures that tax obligations are met, initiates proceedings to enforce compliance, and monitors the progress of tax collections.
The main types of taxes in Armenia include Value Added Tax (VAT), Excise Tax, Profit Tax, Income Tax, Environmental Tax, Road Tax, Turnover Tax, Real Estate Tax, and Vehicle Property Tax. These taxes are exclusively defined by the RA Tax Code, and no other taxes can exist outside of this framework.
Value Added Tax (VAT):
VAT is applied to the supply of goods, performance of works, and provision of services. It is paid by organizations, individuals, and notaries who qualify as VAT payers and whose sales turnover exceeds 115 million AMD. The VAT rate is 20%.
Profit Tax:
This tax is levied on the gross income of resident organizations, individual entrepreneurs, notaries, investment funds, non-resident organizations, and non-resident individuals with activities or income sources in Armenia. The profit tax rate is 18%.
Income Tax:
Income tax is paid by both resident and non-resident individuals on their gross income from sources within Armenia. This includes income from employment contracts, civil law contracts with resident taxpayers, and passive income. The income tax rate, effective from January 1, 2023, is 20%. Payments are due by the 20th of each month.
Turnover Tax:
Turnover tax replaces VAT and profit tax for entities with a sales turnover not exceeding 115 million AMD, provided they declare themselves as turnover tax payers before February 20 of the tax year. The tax rates vary: 5% for sales income, 3.5% for production activities, 10% for rental fees and real estate transactions, and 6% for public catering and 5 % for other activities.
The Armenian tax system also provides certain benefits and exceptions for individuals and legal entities. Various measures, such as warnings and fines, are in place to address incorrect or non-payment of taxes. These measures are determined by other laws and regulations of Armenia.
Understanding these key aspects of the Armenian tax system will help foreign individuals and businesses navigate their tax obligations effectively while operating in the Republic of Armenia.
Ani Arakelyan
Attorney
Visa & Residency
Legal & Compliance
Investment
Whether you have a specific concern or just need some preliminary advice, our team is here to help. Fill out the form below, and one of our experts will reach out to you shortly. No strings attached, and absolutely free.
Your Privacy Matters to Us
Rest assured, any information you provide will be treated with the utmost confidentiality. We firmly believe in the principle of data privacy. That means we will not sell, rent, or lease our contact lists to any third party, and your personal details will never be handed over to individuals, government agencies, or companies.
This law firm exemplifies professionalism and offers exceptional post-service guarantees. I highly recommend their services.
We were impressed by business ethics, accuracy and professionalism of the company, which make this company stand out from the rest. The team that processed our case proved to be highly efficient and professional. Starting a business in Armenia while abroad and having to rely 100% on on-line communication is a big challenge in terms of trust and confidence. We are very happy with the work the team's done for us and will definitely continue cooperating with them in the future. We highly recommend this company as a reliable partner.
They were a fast and competent team. They helped me to get all the needed information and then provided all the services. I highly recommend them as a partner in Armenia.
Thank you for your excellent work and highly competent approach to execute the process both on the spot and remotely. I am glad I have chosen your company to handle the application and the process of obtaining my Armenian passport by descent. Everything was done promptly and with appropriate reaction and solution when the circumstances changed (due to law changes in the country). Shnorhakalut’yun!
Worked with them for over 3 years now. Always professional, excellent service and communication, the staff all speak English. Highly recommend, particularly for foreigners doing business in Armenia.
After my research on a reliable lawyer who could follow my request for residency in Armenia, I selected the firm Vardanyan & Partners. The website made an excellent impression on me, complete with all the information. I contacted them and they then resolved my doubts within a few days. Furthermore, they also offer a guarantee on their service. I was very satisfied and happy with my choice.
Very good quality of service. I highly recommend using the services of Vardanyan & Partners especially with Arman Batikyan. The team is very pleasant, competent and available.
I had a challenging case, and Vardanyan & Partners exceeded my expectations in handling it. Their unwavering dedication and persistence ensured a successful resolution, even when obstacles seemed insurmountable. I'm deeply appreciative of their support. The team's professionalism, patience, and kindness—from the accountants to the lawyers and assistants, all the way to the Managing Attorney—were exceptional. I wholeheartedly recommend Vardanyan & Partners, and I eagerly anticipate the opportunity to work with them again in the future.
The company is the great team of professional specialists. They have formally defined mature processes, that helps to serve client's requests clearly, on time, without red tape and bureaucracy.
The team members were all professional, knowledgeable and most importantly, honest. They are hard-working and patient and were always responsive to my messages and questions. What I like most is, they are very well organized and have a modern system of work.
It is always daunting when dealing with immigration, visas in a foreign country. The team at Vardanyan & Partners made the process for registering the business and applying for residency so much easier. I had no worries at all. The team overall really went out of their way to accommodate and assist us.
Overall, I felt it could not have been any better. Everything was taken care of so smoothly, effortlessly, and managed very well.
The team of Vardanyan & Partners led us through the whole process seamlessly by navigating the bureaucracy end to end. Extremely professional yet personal and friendly service.
As an American living in Armenia, I definitely need legal representation to help guide me through the many rules and regulations here, and I am happy that Vardanyan & Partners has been able to do just that.
Their meticulous attention to detail, unwavering dedication, and commitment to ensuring their clients' needs are met are truly admirable. I strongly recommend Vardanyan & Partners for their exceptional legal services.
Over 10 years of specialized experience in immigration and business setup.
Our team of locally licensed, English-speaking attorneys specializes in immigration, incorporation, and compliance matters, providing bespoke legal strategies for each client.
We prioritize your concerns with a 24-hour response policy and communicate effectively in both English and Russian.
At Vardanyan & Partners, client care is paramount. Our emphasis on honesty and transparency ensures that you are always informed and confident in your legal journey.
Benefit from our secure online payment system without the worry of hidden charges.
Established in 2012, Vardanyan & Partners has built a reputation for excellence and reliability. With our team, you are not just hiring attorneys; you are partnering with insured legal experts committed to your success.
Interested in gaining residency in Armenia? Our Residency by Investment program is an excellent pathway for investors looking to establish a strong presence in the country. Discover how you can secure your future and enjoy the numerous benefits Armenia offers. Learn more by visiting our Residency by Investment page.
Maintaining residency in Armenia does not require physical presence; remote application is possible.
The residency application usually takes about 80 days and only a valid passport is required.
Residents can sponsor extended family for residency (parents, siblings, grandchildren, etc.)
After living in Armenia for three years, citizenship can be obtained. Dual citizenship is allowed.
Managing Attorney
LL.M., Georgetown University
Licensed Attorney, Armenia (License no. 903)
Licensed Attorney, New York (License no. 5148945)
Stay Informed with Our Newsletter
Join our newsletter to receive the latest news, legal updates, and expert advice on citizenship. We pride ourselves on honesty, transparency, and a commitment to client care. Understanding Armenia's unique opportunities and challenges, we are here to guide you.
We look forward to assisting you on your journey in Armenia.
Nestled in the heart of the Davtashen district in Yerevan, our office is a stone's throw away from the Migration Service building, ensuring seamless coordination on immigration matters. If you refer to the map above, you will pinpoint our exact location. For those journeying from the city center, anticipate a brief 20-30 minute taxi ride to reach us. We look forward to welcoming you and addressing your legal needs.
