Expert Armenian Tax Compliance Services

Armenian residents are subject to taxation on their worldwide income, while non-residents are taxed only on income derived from Armenian sources. Residents are individuals who spend 183 days or more in Armenia within any 12-month period. The standard income tax rate is 20% for both residents and non-residents, with special rates applying for specific income types like dividends (5%), royalties (10%), and property rentals (10%).

For the 2024 reporting year, individual tax declarations must be filed by November 1, 2025 (extended from the original May 1 deadline). For businesses, the annual Corporate Income Tax (CIT) return must be filed by April 20 each year. Missing deadlines can result in penalties: for individuals, a warning followed by fines ($12-$125 depending on circumstances), and for businesses, more substantial penalties based on the amount of tax owed plus interest charges.

Armenia's Universal Income Declaration System, being implemented between 2023-2025, requires Armenian citizens who qualify as tax residents to declare all income annually, including both taxable and non-taxable income. The system aims to combat tax evasion and increase transparency. For those already legally earning and paying taxes, it's primarily an additional reporting requirement rather than creating extra tax liability. Our services include full support for navigating these new declaration requirements.

Armenia's microbusiness regime offers a 0% tax rate for qualifying businesses with annual turnover under AMD 24 million (approximately $60,000). Eligible activities include digital creation and arts, educational services, performance and entertainment, direct services, manufacturing, and holding company activities. However, certain activities are explicitly excluded regardless of revenue, including financial services, professional services, marketing and advertising, software development, trading activities, and real estate intermediary services. Our team can assess your specific situation and help determine eligibility.

Armenia has tax treaties with over 45 countries to prevent double taxation of the same income. If you've paid tax on income in a treaty country and the foreign tax rate equals or exceeds Armenia's rate (typically 20%), you generally won't be taxed again on that income in Armenia. If the foreign tax rate is lower, you typically pay only the difference in Armenia. For example, if you paid 18% tax abroad, you would pay an additional 2% in Armenia. Our services include identifying applicable treaties and applying them correctly to optimize your tax position.

Non-compliance penalties in Armenia can be significant. For unreported or incorrectly declared income, the main penalty is a 10% charge on the untaxed amount. Late filing or non-filing of declarations can result in initial warnings followed by fines ranging from $12 for individuals to $125 for shareholders in larger companies. For businesses, there are additional penalties for late payment, improper accounting, and tax avoidance. Our compliance services are designed to help you avoid these costly penalties through proper reporting and timely filings.