How Much Income Tax Is Withheld From Your Salary: Details

According to Article 150 of the Tax Code of the Republic of Armenia, the income tax is calculated at the following rates:

Time Period
Income Tax Rate
From January 1, 2020 – 23%
From January 1, 2021 – 22%
From January 1, 2022 – 21%
From January 1, 2023 – 20%

Lawyer Zarine Hovhannisyan mentions in an interview with Iravaban.net that the income tax rate is 22% starting from January 1, 2021.

“In addition to income tax, social security contributions are also withheld from registered employees if they were born on or after January 1, 1974. Those born before 1974 will have these contributions withheld only if they have submitted an application for a pension fund choice,” she said.

From January 1 to December 31, 2021, the individual's portion of the social security contribution calculated against the gross salary is as follows:

Monthly Salary
Social Security Contribution Rate Against Gross Salary
Up to 500,000 AMD inclusive – 3.5%
Above 500,000 AMD – 10% plus the difference of 32,500 AMD

As we have already informed, one of the latest amendments to the law on compensation for damages caused to the life or health of military personnel during the defense of the Republic of Armenia pertains to stamp duty.

Lawyer Vache Baghdasaryan noted that before 2020, individuals mentioned in this law paid a stamp duty of 1,000 AMD, while individual entrepreneurs and notaries paid 12,000 AMD. However, starting January 1, 2021, a tiered rate has been established:

If the calculated base is up to 100,000 AMD – 1,500 AMD
From 100,001 to 200,000 AMD – 3,000 AMD
From 200,001 to 500,000 AMD – 5,500 AMD
From 500,001 to 1,000,000 AMD – 8,500 AMD
From 1,000,001 AMD and above – 15,000 AMD

Individual entrepreneurs and notaries registered in the Republic of Armenia pay stamp duty at the following rates:

If the calculated base is up to 1,200,000 AMD – 18,000 AMD
From 1,200,001 to 2,400,000 AMD – 36,000 AMD
From 2,400,001 to 6,000,000 AMD – 66,000 AMD
From 6,000,001 to 12,000,000 AMD – 102,000 AMD
From 12,000,001 AMD and above – 180,000 AMD

“It is also necessary to inform that prior to the latest amendment to the law on compensation for damages caused to the life or health of military personnel during their service in the Republic of Armenia, if an individual was working under a labor contract with more than one employer, they had the right to apply to the Fund to retrieve the stamp duty paid (withheld from their income by the tax agent). However, such a provision is not established now,” the lawyer added.

Thus, for example, when an individual receives a gross salary of 150,000 AMD as per the contract (including taxes and mandatory payments), their actual “net” salary will be 108,750 AMD (150,000 minus income tax 22% = 33,000 AMD + social security contribution 3.5% = 5,250 AMD + stamp duty = 3,000 AMD).