Armenia has a progressive corporate income tax system with a flat rate of 18%, a VAT system with a standard rate of 20% and reduced rates for certain goods and services, and import duties that range from 0% to 30%. There are no sales taxes or export duties in Armenia. The tax laws and regulations are subject to change, and it is recommended to seek professional advice when dealing with corporate taxation in Armenia.
Corporate Income Tax:
The Corporate Income Tax (CIT) in Armenia is a flat rate tax that applies to both resident and non-resident companies. The current CIT rate in Armenia is 18%. Companies are required to file an annual tax return by March 31st of the year following the tax year. The CIT law is regulated by the Law of the Republic of Armenia "On Profit Tax" (adopted on December 16, 1997).
GST or VAT:
Armenia has a Value-Added Tax (VAT) system, which is regulated by the Law of the Republic of Armenia "On Value Added Tax" (adopted on December 12, 2001). The standard VAT rate in Armenia is 20%, and it applies to most goods and services. However, certain goods and services are subject to reduced VAT rates, such as medical goods and services (10%), books (10%), and some food products (10%). The VAT registration threshold is AMD 58,000,000 (approximately USD 119,000).
Armenia does not have a sales tax system. Instead, it uses a VAT system, as discussed above.
Armenia imposes import duties on certain goods, which are regulated by the Law of the Republic of Armenia "On Customs Regulation" (adopted on December 4, 2001). The import duty rates vary depending on the nature of the goods, and they range from 0% to 30%. For example, the import duty rate for cars is 30%, while the import duty rate for pharmaceuticals is 0%.
Armenia does not impose export duties on goods.