--- title: "Armenia tax for new residents 2026: rates and regimes" url: https://settleanywhere.com/countries/armenia/tax/ lang: en updated: 2026-10-11 --- # Armenia tax Tax residence: At least 183 days in tax year. 3 special regimes for new residents: Turnover tax at 1% for high-technology activities, Micro-entrepreneurship regime and 5% to 20% of sales turnover. Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Tax residence - At least 183 days in tax year · Actual presence in Armenia (Tax Code Art. 12 definition of resident natural persons); centre of vital interests is an alternative test. - A residence card does not decide tax residence. ## Special regimes for new residents Special regime ### Turnover tax at 1% for high-technology activities 1% tax **Details** - On: Sales turnover from the high-technology activity list - Limit: AMD 115M/yr ≈ $318k Income from activities on the Government high-technology list is taxed at 1% turnover tax by commercial organisations and individual entrepreneurs that qualify as turnover taxpayers; the 1% row applies until 31 December 2031. (source 1) #### Taxed on Sales turnover from the high-technology activity list (turnover tax replaces VAT and/or profit tax; for individual entrepreneurs it replaces VAT and profit tax is AMD 5,000 (≈ $14) a month). #### Who it applies to - Resident commercial organisation or individual entrepreneur whose sales turnover for all activities did not exceed AMD 115 million (≈ $318,000) in the preceding tax year; statement filed with the tax authority (by 20 February, or within 20 days of registration). - Activity is on the Government list of high-technology sector activities. #### Exclusions - Banks, insurers, investment companies, notaries, audit companies, legal service providers, crypto-asset providers; legal and accounting activities, management consulting and temporary-staff supply; related persons whose combined turnover exceeds AMD 115 million (≈ $318,000). #### Limits - AMD 115,000,000 a year (≈ $318,000) · Maximum sales turnover in the preceding tax year to be a turnover taxpayer. - AMD 5,000 a month (≈ $14) · Profit tax of an individual entrepreneur on turnover-tax activities, a final liability. #### Tax residence Resident commercial organisations and individual entrepreneurs only; no days-in-country test applies to the regime. #### Visas An individual entrepreneur or company must be registered in Armenia; entrepreneurship is a temporary residence ground. #### Other taxes Social payments and personal income tax on salaries are separate. Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/) Special regime ### Micro-entrepreneurship regime 0% tax **Details** - Limit: AMD 24M/yr ≈ $66k Entities with turnover up to AMD 24 million (≈ $66,300) in the previous year are exempt from VAT, profit tax and turnover tax obligations and from most state taxes arising from the micro business. (source 1) #### Taxed on Sales turnover from micro-entrepreneurship activity, up to AMD 24 million (≈ $66,300) in the previous tax year #### Who it applies to - Resident commercial organisation or individual entrepreneur with sales turnover of at most AMD 24 million (≈ $66,300) in the previous tax year; natural persons who are not individual entrepreneurs qualify for activities listed in Annex 3. #### Exclusions - Banks, insurers, investment companies, notaries, audit firms, commercial (purchase and sale) activity, and persons providing consulting, legal, accounting, engineering, advertising, design, marketing, translation, medical, IT-processing, research and development, construction design and similar services; related persons above the combined threshold; rental, interest and royalty recipients. #### Limits - AMD 24,000,000 a year (≈ $66,300) · Maximum sales turnover of the previous tax year. #### Visas Requires registration as an Armenian entity or individual entrepreneur. #### Other taxes Not exempt from import taxes, income tax withheld on payments to non-entrepreneur individuals, excise, environmental and road tax. Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/) Special regime ### Armenia turnover tax: 5% to 20% of sales turnover for taxpayers with turnover up to AMD 115 million Tax relief **Details** - Limit: AMD 115M/yr ≈ $318k Resident commercial organisations and individual entrepreneurs with sales turnover of up to AMD 115 million (≈ $318,000) in the previous year may elect turnover tax in place of VAT (and, for organisations, profit tax). The rate depends on the activity: 10% trade, 7% production, 10% rent, interest and royalties, 12% public catering, 20% other activity, 1% high-technology activity; an individual entrepreneur on turnover tax pays a fixed AMD 5,000 (≈ $14) a month in place of profit tax. (source 1) #### Taxed on Sales turnover from supply of goods, works and services (including rent, interest, royalties and transfers of assets). Rates by activity: trade (purchase and sale) 10%; trade in listed secondary raw material 5%; newspaper sales by editorial offices 1.5%; production 7%; rent, interest and royalties 10%; public catering 12%; other activity 10% (20% for non-catering income of catering-election taxpayers); high-technology list activity 1% (row in force until 31 December 2031); alienation of other assets including immovable property 10%. For trade, production, catering and other-activity income, tax is reduced by a percentage of qualifying expenses, subject to minimum floors of 1% to 4.5% of the base. #### Who it applies to - Resident commercial organisations and individual entrepreneurs whose sales turnover in all activities did not exceed AMD 115 million (≈ $318,000) in the preceding tax year may be turnover taxpayers; they submit a statement by 20 February of the tax year (or within 20 days after registration). - Individual entrepreneurs on turnover tax replace VAT with turnover tax; resident commercial organisations replace VAT and profit tax (the code treats 40% of the tax as profit tax and 60% as VAT). - Individual entrepreneurs on turnover tax pay profit tax of AMD 5,000 (≈ $14) a month as their final profit tax liability. - Reporting is quarterly; the return and payment fall due by the 20th day of the month after each quarter. #### Exclusions - Banks, credit organisations, insurers, investment companies, notaries, audit companies, legal service providers, and legal, accounting and head-office consulting activities cannot be turnover taxpayers. - A taxpayer ceases to be a turnover taxpayer from the point sales turnover exceeds AMD 115 million (≈ $318,000) in the tax year; VAT then applies on the excess. #### Limits - AMD 115,000,000 a year (≈ $318,000) · Sales turnover ceiling for being a turnover taxpayer (previous tax year) and for staying in the regime during the year - AMD 5,000 a month (≈ $14) · Fixed profit tax of an individual entrepreneur on turnover tax #### Tax residence Taxation of the individual's other income follows the 20% personal income tax for residents (see “Personal income tax: residence test and 20% rate”); the turnover regime applies to the entrepreneurial activity. #### Visas The regime is available to individual entrepreneurs and resident commercial organisations regardless of visa category. #### Other taxes VAT is replaced for turnover taxpayers; taxes not replaced by turnover tax continue to apply under the Tax Code (art. 263). Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Standard rules and foreign-source income Standard rules ### Personal income tax: residence test and 20% rate 20% tax **Details** - On: Gross income less deductions - Who: Resident: actual presence of 183 or more days Residents are taxed on income from sources in and outside Armenia at 20% (rate in force since 1 January 2023); non-residents on Armenian-source income only. (source 1) #### Taxed on Gross income less deductions; residents worldwide, non-residents Armenian-source (Art. 141, 143). #### Who it applies to - Resident: actual presence of 183 or more days (arrival and departure days count), or centre of vital interests in Armenia. #### Exclusions - Entrepreneurial income of individual entrepreneurs registered in Armenia is outside personal income tax and is taxed under their entrepreneur regime. #### Days in the country - At least 183 days in tax year · Actual presence in Armenia (Tax Code Art. 12 definition of resident natural persons); centre of vital interests is an alternative test. #### Tax residence A residence card does not decide tax residence. #### Visas None. #### Other taxes Pension income from voluntary pension schemes is taxed at 10%; salary of high-technology researchers at 10% under conditions (Art. 150). Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/) Standard rules ### Profit tax for resident organisations 18% tax **Details** - On: Taxable profit of resident organisations and permanent establishments Resident profit taxpayers pay profit tax at 18%; investment funds 0.01%. (source 1) #### Taxed on Taxable profit of resident organisations and permanent establishments #### Visas None. Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## VAT, social security and other taxes - Pension income from voluntary pension schemes is taxed at 10%; salary of high-technology researchers at 10% under conditions (Art. 150). - Social payments and personal income tax on salaries are separate. - Not exempt from import taxes, income tax withheld on payments to non-entrepreneur individuals, excise, environmental and road tax. - VAT is replaced for turnover taxpayers; taxes not replaced by turnover tax continue to apply under the Tax Code (art. 263). ## Questions people ask ### When do you become a tax resident in Armenia? At least 183 days in tax year (Actual presence in Armenia (Tax Code Art). A residence card does not decide tax residence. ### Who qualifies for Turnover tax at 1% for high-technology activities? Resident commercial organisation or individual entrepreneur whose sales turnover for all activities did not exceed AMD 115 million (≈ $318,000) in the preceding tax year; statement filed with the tax authority (by 20 February, or within 20 days of registration). An individual entrepreneur or company must be registered in Armenia; entrepreneurship is a temporary residence ground. ### Who qualifies for Micro-entrepreneurship regime? Resident commercial organisation or individual entrepreneur with sales turnover of at most AMD 24 million (≈ $66,300) in the previous tax year; natural persons who are not individual entrepreneurs qualify for activities listed in Annex 3. Requires registration as an Armenian entity or individual entrepreneur. ### Who qualifies for 5% to 20% of sales turnover? Resident commercial organisations and individual entrepreneurs whose sales turnover in all activities did not exceed AMD 115 million (≈ $318,000) in the preceding tax year may be turnover taxpayers; they submit a statement by 20 February of the tax year (or within 20 days after registration). The regime is available to individual entrepreneurs and resident commercial organisations regardless of visa category. ≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated. **Sources (1)** ## Official sources 1. [Tax Code of the Republic of Armenia (consolidated to Law HO-255-N of 3 July 2025)](https://www.arlis.am/en/acts/224990) · ARLIS legal information system of Armenia · checked 2026-10-11