January 4, 2019

Tax Benefits for IT Companies in Armenia

Tax Benefits for IT Companies in Armenia

Tax Benefits for IT Companies in Armenia

According to the government approval of a set of amendments to the law on state assistance to IT sector government, startups and branches of foreign IT companies will be granted tax breaks. Armen Pambukchyan, deputy Minister of Transport, Communications and Information Technology claimed that the tax benefits will be in effect until 2022.

The tax breaks granted to IT companies have been in effect since 2015 exempting them from income tax payments (the zero rate is in effect). Instead of 23% payroll tax, IT companies pay only 10%.

Thanks to the tax regulation starting from 2014 to 2017, the number of startups in Armenia increased by 256 creating 2,400 new jobs with an average salary of 3-3.4 million drams per year. IT startups have paid almost 611 million AMD in taxes from 2015 to 2017.

Earlier, the acting Minister of Transport, Communication and Information Technologies said the approved amendments would apply to manufacturers of electronic equipment, devices, engineering businesses and others.

Under a government decision passed by the Armenian parliament in late 2014, startups employing up to 30 people are exempt from profit tax until 2020. They are also eligible for a preferential payroll tax rate for their employees, equivalent to 10 percent of their gross wages.

More than 16,000 people are employed by IT companies in Armenia and this sector accounts roughly for 5 percent of the country’s Gross Domestic Product (ARKA, Startups and Branches of Foreign IT Companies in Armenia Will Be Granted Tax Breaks (Nov. 23, 2018)).

Disclaimer: The content on this page is provided for informational purposes only and does not constitute legal, financial, or professional advice.

Contact Us for Assistance

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.

Contact Us

Prefer to talk instead? Click the button below to book a free call with one of our experts at a time that works for you. 

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.

What Clients Say

Why Choose Us


Decade of Excellence

Over 10 years of specialized experience in immigration and business setup.


Tailored Solutions

Our team of locally licensed, English-speaking attorneys specializes in immigration, incorporation, and compliance matters, providing bespoke legal strategies for each client.


Fast & Fluent Communication

We prioritize your concerns with a 24-hour response policy and communicate effectively in both English and Russian.


Client-Centered Approach

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.


Secure Transactions

Benefit from our secure online payment system without the worry of hidden charges.


Reputable & Reliable

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.

>

Stay Informed with Our Newsletter

Get the latest news, legal updates, and expert advice on immigration to Armenia and other countries.