State Revenue Committee Addresses Taxation of Citizens Working Abroad

The State Revenue Committee of Armenia, considering the media reports and social media discussions regarding the taxation of Armenians working abroad, finds it necessary to inform the public that the regulations regarding the income tax on the taxable income of Armenian residents in foreign countries are not new. This was announced by the Committee.

Specifically, Armenian residents earning income both in Armenia and foreign states are obliged to calculate and pay income tax at the rates established by Armenian legislation. The calculated amounts of income tax can be reduced by the amount of tax paid by individuals in foreign countries, but this reduction should not exceed the amounts calculated as income tax in Armenia. If any payable income tax arises in Armenia, individuals are required to self-calculate it and submit an annual income tax calculation to the tax authority electronically by May 1 of the year following the reporting year.

Additionally, it is worth noting that on November 2, 2018, in the city of Astana, the governments of the member states of the Commonwealth of Independent States signed an agreement on the cooperation and mutual assistance in matters of maintaining tax legislation and combating violations in this field, established on June 4, 1999. This agreement was ratified in Armenia on February 12, 2020. Within the framework of this agreement, the tax authority has received information regarding the income earned by individuals in the CIS member states.

Taking the above into account, the Committee has sent notifications to citizens liable for calculating and paying taxes according to Armenian tax legislation, opting to refrain from heavy administrative measures. At the same time, the Committee expresses its willingness to engage in discussions around the regulations of tax legislation within a framework of soft administration.