Recent Tax Changes and Associated Obligations
This article is prepared by QuinnPoint Legal and Advisory
This article serves as a reminder about recent changes to the tax regulations in Armenia and the associated obligations for residents of the Republic of Armenia. It provides important guidance to ensure compliance with these updated requirements.
Changes Related to Turnover Tax Payment
Entities Considered as Turnover Tax Payers:
A resident commercial organization or individual entrepreneur whose total turnover from all types of activities in the previous fiscal year did not exceed 115 million AMD may qualify as a turnover tax payer.
Entities Considered as Turnover Tax Payers:
A resident commercial organization or individual entrepreneur whose total turnover from all types of activities in the previous fiscal year did not exceed 115 million AMD may qualify as a turnover tax payer.
Who is Exempt from Being Considered a Turnover Tax Payer?
The following entities are exempt from being considered turnover tax payers:
● Banks, credit organizations, insurance companies, insurance agents, insurance brokers, investment companies, specialized participants of the securities market, pawnshops, foreign exchange trading operators;
● Investment funds, fund managers, payment organizations;
● Casinos, gambling establishments, totalizator and internet totalizator operators, lottery organizers;
● Notaries, audit firms, legal service providers.
The following entities are exempt from being considered turnover tax payers:
● Banks, credit organizations, insurance companies, insurance agents, insurance brokers, investment companies, specialized participants of the securities market, pawnshops, foreign exchange trading operators;
● Investment funds, fund managers, payment organizations;
● Casinos, gambling establishments, totalizator and internet totalizator operators, lottery organizers;
● Notaries, audit firms, legal service providers.
Changes in Turnover Tax Rates
As a result of amendments to the Tax Code, the turnover tax rate has increased by approximately 5-10%. The rates for different types of activities are as follows:
1. Income from trade (buying and selling) activities, excluding those defined in points 2 and 9 of this table - 10%
2. Income from trade (buying and selling) activities related to secondary raw materials listed by the government - 5%
3. Income from the sale of newspapers by editorial offices - 1.5%
4. Income from production activities - 7%
5. Rental payments, interest, royalties - 10%
6. Income from public catering activities -12%
7. Income from the sale of assets not included in the economic activity classification “Public Catering Organization,” as well as income from other activities by turnover tax payers who have submitted a statement to the tax authority - 20%
8. Income from activities in the high-tech sector listed by the government - 1%
9. Income from the sale of other assets, including real estate - 10%
10. Income from other activities - 10%
Changes Related to Micro-Entrepreneurship Status
Entities Eligible for Micro-Entrepreneurship Status:
A resident commercial organization, individual entrepreneur, or individual, whose total turnover from all activities in the previous fiscal year does not exceed 24 million AMD, may qualify as a micro-entrepreneur. Micro-entrepreneurs are exempt from paying all state taxes arising from micro-entrepreneurship, except in cases specified by the Armenian Tax Code.
Entities Eligible for Micro-Entrepreneurship Status:
A resident commercial organization, individual entrepreneur, or individual, whose total turnover from all activities in the previous fiscal year does not exceed 24 million AMD, may qualify as a micro-entrepreneur. Micro-entrepreneurs are exempt from paying all state taxes arising from micro-entrepreneurship, except in cases specified by the Armenian Tax Code.
Who is Exempt from Being Considered a Micro-Entrepreneur?
The following entities cannot be classified as micro-entrepreneurs:
• Banks, credit organizations, insurance companies, insurance agents, insurance brokers, investment companies, specialized participants of the securities market, pawnshops, foreign exchange trading operators, investment funds, fund managers, payment organizations, notaries, casinos, gambling or lottery operators, saunas, bathhouses, and steam baths operators, audit firms, commercial entities engaged in trade, and individual entrepreneurs.
• Consulting service providers (e.g., legal, accounting, engineering, advertising, design, marketing, translation, expert, forensic services).
• Entities engaged in public catering activities in the administrative boundaries of Yerevan, with the exception of those offering hotel services directly related to the tourism industry.
• Other entities
The following entities cannot be classified as micro-entrepreneurs:
• Banks, credit organizations, insurance companies, insurance agents, insurance brokers, investment companies, specialized participants of the securities market, pawnshops, foreign exchange trading operators, investment funds, fund managers, payment organizations, notaries, casinos, gambling or lottery operators, saunas, bathhouses, and steam baths operators, audit firms, commercial entities engaged in trade, and individual entrepreneurs.
• Consulting service providers (e.g., legal, accounting, engineering, advertising, design, marketing, translation, expert, forensic services).
• Entities engaged in public catering activities in the administrative boundaries of Yerevan, with the exception of those offering hotel services directly related to the tourism industry.
• Other entities
Note: A declaration regarding the turnover tax or micro-entrepreneurship status must be submitted to the tax authority by February 20th.
Changes Related to the Calculation of Property Tax
For the 2025 reporting year, property tax (excluding agricultural land) will be calculated at 75% of the product of the cadastral value of the property, which is closely aligned with the market value, and the rate specified in Article 229 of the Tax Code for certain types of property.
For the 2025 reporting year, property tax (excluding agricultural land) will be calculated at 75% of the product of the cadastral value of the property, which is closely aligned with the market value, and the rate specified in Article 229 of the Tax Code for certain types of property.
Deadline for Payment of Property Tax:
Organizations and individuals must pay property taxes to the community budget where the property is located by the following deadlines:
1. Individuals: By December 1st of the tax year.
2. Organizations: By the following deadlines:
- First half: By June 1st of the tax year.
- Second half: By December 1st of the tax year.
Organizations and individuals must pay property taxes to the community budget where the property is located by the following deadlines:
1. Individuals: By December 1st of the tax year.
2. Organizations: By the following deadlines:
- First half: By June 1st of the tax year.
- Second half: By December 1st of the tax year.
Disclaimer
This information is provided for general informational purposes only and is not a substitute for professional advice. The content herein is based on official sources but does not guarantee
complete accuracy or comprehensiveness.
This information is provided for general informational purposes only and is not a substitute for professional advice. The content herein is based on official sources but does not guarantee
complete accuracy or comprehensiveness.
Should you require further clarification, please contact QuinnPoint Legal and Advisory
Email: [email protected]
Email: [email protected]
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