In general, the following state and municipal taxes are defined in the Republic of Armenia:

State taxes:
•    Profit Tax
•    Income Tax
•    Excise Tax
•    Value Added Tax.

The law may specify turnover tax, presumptive payments or license fees as a replacement to the above mentioned taxes.

Municipal taxes:

•    Property Tax
•    Land Tax.

Profit Tax
Tax payers: Profit Tax in Armenia is payable both by residents (organizations established in the RA) and non-residents (organizations created outside the RA and their subdivisions registered in Armenia).

Profit tax rate: For residents and registered non-residents the rate of Profit Tax is currently 20% of the taxable profit.

Taxable profit: Profit Tax is calculated on the basis of the taxable profit representing the positive difference between the total income from the sale of goods, services, assets and other property, less total expenses which are deductible by law.

Reporting period: Taxpayers have to submit their Profit Tax return to their local tax authority before April 15 of the year following the reporting year. The amount of the Profit Tax should be transferred to the State Budget not later than April 25 of the year following the reporting year.The reporting year end is 31 December for all companies. When establishing the amount of the Profit Tax liability, the income and expenditure are calculated on the accruals basis.

Value Added Tax:  In Armenia persons subject to VAT deduct the VAT paid on their inputs from the VAT charged on their sales and account for the difference to the tax authorities. The standard rate of VAT on domestic sales of goods and services and the importation of goods is 20%. Exported goods and related services are zero-rated.

Taxable threshold

VAT obligations are based on taxable turnover for transactions implemented during the previous calendar year. If those revenues exceed AMD 58.35 million, the taxpayer must account for VAT on all sales. Generally, if the previous year’s revenues were less than AMD 58.35 million (e.g., the taxpayer is in the frst year of operations), the taxpayer is obliged to account for VAT only on sales in that year that exceed AMD 58.35 million. Taxpayers whose revenues are below the AMD 58.35 million threshold may voluntarily elect to account for VAT.

Scope of VAT

Unless there is an express exemption in the law, VAT applies to:

    Goods and services where the place of supply is Armenia, and
    Importation of goods into Armenia.

 Armenian New Tax Law Brief, provisions that come into force starting 2017