Tax In Armenia

A Contractor's Guide to Taxes : 

One of the most consistently challenging aspects of contracting in Armenia is complying with the country’s tax system. As well as paying tax in Armenia, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income: 

If you’re working in Armenia under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Armenia for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Armenia, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Armenia through PAYE is left with the prospect doing everything themselves.

Do you know much about Armenian Tax Law? Does Armenia have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Armenia can range from 24.4 to 36 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator: 

If you are a contractor and want a calculation on your tax and net retention in Armenia, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax : 

Contractors in Armenia are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. An Armenian umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Armenian taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Armenian tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax: 

We work with numerous umbrella companies in Armenia, many of whom are experts in tax and immigration laws. If you have any questions about tax in Armenia, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Armenian work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Armenia but without the overhead of directly dealing with the Armenian tax authorities. Get in touch with us today for some reliable advice on tax in Armenia!

When Do You Need to Lodge Your Tax Return?: 
15 April of the following year
Tax Filing Deadline : 
15 April of the following year
Can you file it online? : 
Yes, https://file-online.taxservice.am/pages/loginPage.jsf
Currency: 
Armenian Dram (AMD)
Tax-free Threshold in: 
None
Grossed Income: 
0 - 120,000
Tax Rate: 
24.4%
Grossed Income: 
>120,000 - 2,000,000
Tax Rate: 
26%
Grossed Income: 
>2,000,000
Tax Rate: 
36%
How long does it take to set up: 
4.5 days
How much does it cost: 
AMD15,500
Is it easy? : 
Starting a Business Rank: 15/190 (Source: World Bank)
How to File Taxes in: 

Step 1: Register for a TIN

You can register for a Tax Identification Number (TIN) at the Armenian tax office. The following documents are required:

  • A TIN application form
  • A copy of your passport or identification card
  • Your Public Services Number (PSN), or a document verifying the absence of a PSN

Step 2: File Taxes Online

You can file taxes online on the Tax Service of Republic of Armenia’s website here. A guide to filing taxes can be found here. It is recommended that you consult a translator as the guide and the portal are in Armenian.

Does the 183 day rule apply in: 

Yes

When do you become a tax resident in: 

You become a tax resident in Armenia when:

  • You are physically present for 183 days or more in any 12-month period commencing or ending in the income tax year;
  • Your centre of vital interests is in Armenia, or
  • You are in the civil service of Armenia.
Am I taxed on my global income in: 

Residents are taxed on their global income. Non-residents are taxed on their Armenia-source income only.

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