VIDEO: What Taxes Will Business Founders Pay in Armenia?

The State Revenue Committee of the Republic of Armenia has decided to provide all necessary information to foreign visitors arriving in Armenia at border checkpoints and airports.

To this end, informational leaflets and booklets in Armenian and Russian have been published, which cover everything from the procedures for importing personal belongings to answers to key questions related to starting a business in Armenia.

The informational leaflet indicates that foreigners can register a limited liability company, a closed or open joint-stock company, or be registered as individual entrepreneurs in Armenia.

The state registration of companies and state accounting of individual entrepreneurs is carried out by the State Register of Legal Entities of the Ministry of Justice of Armenia.

For companies and individual entrepreneurs operating in the information technology sector and holding certificates, there are tax benefits available.

For more detailed information on obtaining a certificate, foreigners can contact the Ministry of Economy.

Regarding taxes, companies with a turnover of up to 24 million dram are registered in the micro-entrepreneurship system and are exempt from turnover tax according to Armenian legislation. They only pay income tax for their employees at a fixed rate of 5,000 dram, regardless of salary amounts, as well as social security contributions and a stamp duty of 1,000 dram.

Companies with a turnover of up to 115 million dram are subject to turnover tax in Armenia. However, they are exempt from VAT.

For those transporting their personal belongings from EAEU member states to Armenia, the SRC informs that these do not require customs declaration or customs payments. However, if the same goods come to Armenia from a third country, the transporter must present a transit declaration.

When bringing in personal vehicles from EAEU member states to Armenia, there is also no need for a declaration. However, when importing from third countries, vehicles can be brought in under temporary import procedures for no more than a year.

Additionally, when transporting any vehicle to Armenia, it is necessary to sign a mandatory insurance contract, failure of which results in a fine of 100,000 dram for driving the vehicle. In the case of temporary imports, if the vehicle is not exported after one year, the importer will also be fined.

It is noteworthy that due to the events in Ukraine and the restrictions imposed against Russia, a significant number of foreign citizens (primarily from Russia, Belarus, and Ukraine) have moved to Armenia. Some have also relocated their businesses to our country to avoid financial and economic restrictions.

According to the Central Bank of Armenia, approximately 27,000 accounts have been opened for non-residents in Armenian commercial banks from February 28 to March 31, 2022, the overwhelming majority of which belong to individuals from Russia.