Tax in Armenia

Who is the tax authority?

Armenia's tax and customs authority is the State Revenue Committee (Petakan Ekamutneri Komite, SRC), operating under the Government of Armenia. The SRC administers the Tax Code, customs duties, and the e-Filing electronic services portal. Tax disputes proceed through SRC internal review, the Tax Disputes Commission, and the administrative courts.

The principal credentialed profession is the Patentavor Hashvapah (Authorized Accountant), regulated by the Chamber of Accountants and Auditors of Armenia (CAAA). Substantive law rests on the Tax Code of the Republic of Armenia (unified since 2018) plus the Customs Code and successive amendment laws.

Deep-dive: see tax professionals in Armenia to locate a vetted CAAA-regulated practitioner.

What is the tax year and when are returns due?

Armenia's tax year is the calendar year (1 January to 31 December). Wage earners have income tax fully withheld monthly by employers — no separate annual return is required for those with only employment income.

Corporate annual returns are due 20 April for the prior calendar year. AAH (VAT) returns are filed monthly by the 20th of the following month. Withholding tax returns also fall monthly.

Who counts as an Armenian tax resident?

Under the Tax Code, an individual is an Armenian tax resident if either rule applies:

• Physically present in Armenia for at least 183 days in a 12-month period
• Centre of vital interests (kisherkaynutyan kentron) is in Armenia

Residents are taxed on worldwide income. Non-residents are taxed only on Armenian-source income at flat or schedular rates (typically 20%). Treaty tie-breaker rules apply under Armenia's bilateral DTA network where two countries both claim residency.

Deep-dive: see expat and cross-border tax in Armenia for practical guidance on mid-year moves and EAEU cross-border workers.

What are the personal income tax rates?

Armenia moved to a flat 20% personal income tax (ekamutneri hark) on 1 January 2020, replacing the prior three-band progressive scale:

Investment income uses different withholding rates: dividends from Armenian companies face 5% final withholding; interest from Armenian financial institutions faces 10% final withholding. Capital gains on property and securities are taxed at 20% flat.

Mandatory pension contributions under the 2018 reform add 5% on the employee side (on income up to AMD 500,000/month), with a state-matching component. These are separate from the 20% flat PIT.

Deep-dive: see self-employed tax in Armenia for sole-trader and freelancer obligations.

How does corporate tax work?

Armenia's corporate income tax (shahutakan ekamutneri hark) is 18% flat on taxable profit. The rate was reduced from 20% as part of the same 2020 reform package that flattened PIT.

Small businesses below AMD 115 million annual turnover may elect a turnover tax (shrhanayin hark) instead of standard CIT:

The turnover tax is an alternative to the standard CIT and AAH system for qualifying small businesses. Loss carryforwards are available for 5 years under the standard CIT regime; carrybacks are not permitted. Transfer pricing rules under the Tax Code follow OECD principles with expanding documentation requirements. Pillar Two has not yet been formally transposed — in-scope multinational groups should monitor for legislative developments.

Deep-dive: see small business tax in Armenia for the turnover-tax election trade-offs.

What about AAH (VAT) and other indirect taxes?

Avaelacman Arvakum Hark (AAH) is Armenia's VAT equivalent. The standard rate is 20% under the Tax Code.

AAH registration becomes mandatory once annual turnover exceeds AMD 115 million. Below that threshold, businesses may elect the turnover-tax regime instead. Reverse-charge AAH applies on imported services. Foreign suppliers providing B2C cross-border digital services to Armenian customers must register and collect AAH under successive Tax Code amendments.

The EAEU Customs Union shapes cross-border indirect tax flows. Goods moving between Armenia, Russia, Kazakhstan, Belarus, and Kyrgyzstan circulate without customs duties under the Union framework, but indirect tax rules still apply on cross-border supplies within the Union. Excise tax applies to alcohol, tobacco, fuels, and specified other goods. Customs-equivalent AAH on imports is collected at the border.

Deep-dive: see VAT and indirect tax in Armenia for the full AAH registration mechanics.

How are cryptoassets taxed?

Armenia has not enacted a dedicated crypto-asset taxation law. The Central Bank of Armenia (Hayastani Kentronakan Bank) has issued advisory positions treating cryptoassets as not legal tender.

Mining and staking activity conducted in Armenia is treated as business income subject to standard CIT at 18%. Receipt of crypto as employment compensation is taxable at 20% PIT, with AMD-equivalent value measured at the date of receipt. NFTs, stablecoins, and DeFi proceeds follow the same case-by-case capital-gains treatment.

Deep-dive: see crypto taxation in Armenia for the current SRC interpretive guidance.

What is the treaty network?

Armenia has approximately 50 active bilateral double tax treaties (kettakrordvman mixin hamadzaynagutyunner). Armenia signed the OECD Multilateral Instrument (MLI) on 7 June 2017 and ratified it, meaning PPT and other anti-abuse rules now modify applicable bilateral treaties. There is no comprehensive US-Armenia DTA — the absence of a treaty with the United States is a notable gap for the large Armenian diaspora.

Key treaty partners include Russia (1996 treaty with successive protocols), EAEU peers Kazakhstan, Belarus, and Kyrgyzstan, plus France, Germany, UK, Iran, Georgia, Cyprus, Netherlands, China, India, Singapore, Switzerland, and Ukraine. Armenia adopted CRS (Common Reporting Standard) for automatic exchange of financial information. Standard statute of limitations is 5 years from the tax year, extended for fraud or non-filing.

Deep-dive: see tax treaty relief in Armenia for the bilateral rate schedules.

Where does Armenia sit in the regional cohort?

Armenia anchors the South Caucasus + EAEU cohort alongside Georgia and Azerbaijan as direct geographic peers, with Russia, Kazakhstan, Belarus, and Kyrgyzstan as the wider EAEU customs-union group. The broader post-Soviet tax landscape splits into 5 distinct archetypes:

Common penalties and pitfalls

Foreign companies and individuals regularly encounter the following issues when operating in Armenia:

When should you talk to a Tax-Adviser or Patentavor Hashvapah?

Some Armenian tax situations are straightforward to handle through e-Filing. Others benefit from professional input:

• Your income comes from multiple sources — employment, freelance, rental, and investment income all combine under the 20% flat rate, but the withholding and filing mechanics differ
• You operate a business and are deciding between the standard CIT+AAH regime and the turnover-tax alternative
• You are evaluating the IT-sector incentive (0% CIT / 10% PIT) and need to confirm qualifying-activity eligibility
• You have cross-border income and want to apply treaty relief from one of Armenia's ~50 DTA partners
• You are a US person with Armenian-source income relying on the FTC fallback instead of a bilateral DTA
• You received an SRC audit notice or assessment — standard SOL is 5 years, extended for fraud
• You have pension and PIT withholding questions, including the 2018 mandatory-pension threshold mechanics

You can find vetted Armenian practitioners registered with the CAAA through the directory below.

This page is general information. It is not personal guidance for your specific situation. Tax rules change. Always verify current figures on the SRC website (src.am) or with a licensed Armenian practitioner before filing.