Armenia - Other taxes and levies

Armenia - Other taxes and levies

Taxation of international executives

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Social security tax
Gift, wealth, estate, and/or inheritance tax
Real estate tax
Sales/VAT tax
Unemployment tax
Other taxes

Sources: Law "On Property Tax" NoHO-491-N, 30 December 2002 and Law ;"On Land Tax" No.HN-1005-HO-101, 27 April 1994, RA Law No245-N, 15 December 2016 “On compensation for fallen or damaged servicemen during the defense of the Republic of Armenia”, Tax Code No.165N, 04 October 2016 (Tax Code will come into force on 1 January 2018, but some of articles came into force on 1 January 2017).

Social security tax

Are there social security/social insurance taxes in Armenia? If so, what are the rates for employers and employees?

Employer and employee

Started from 1 January 2013 the RA law “On unified income tax” entered into force, which replaced the RA laws “On income tax” and “On Mandatory Social Security Payments”. The Law defines “unified income tax” instead of income tax and SSP. Besides starting from 01 January 2014 the RA Law “On funded pension payments” fully entered into force which has voluntary and mandatory components.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Armenia?

No.

Real estate tax

Are there real estate taxes in Armenia?

The buildings are subject to property tax. The tax base is the value of the property, based on which the relevant rate of the property tax is applied.
The tax base for buildings is determined by original cost and by subsequent revaluation, carried out once in each three years by the State Cadastre of Real Estate. The tax rate on public and industrial buildings is 0.3 percent annually on the tax base, which is considered to be the property value. For dwellings and other buildings, progressive tax rate from 0.1 percent to 1.0 percent is applied.

Sales/VAT tax

Are there sales and/or value-added taxes in Armenia?

There are no sales or VAT taxes relevant to assignees.

Unemployment tax

Are there unemployment taxes in Armenia?

No.

Other taxes

Are there additional taxes in Armenia that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

Stamp fee

According to the RA Law “On compensation for fallen or damaged servicemen during the defines of the Republic of Armenia” RA resident individuals who work on the RA territory or outside the RA territory and non RA residents who work on the RA territory shall pay to the state budget a stamp fee of AMD 1,000 for each month starting 1 January 2017. The stamp fee is withheld by employer/tax agent on a monthly basis from their employees’ salaries and transfer these amounts to the specified bank account.

Local taxes

Property tax and land tax are levied in Armenia from owners of property and land. For agricultural land, the rate of land tax is 15 percent of the estimated net cadastral income. For non-agricultural lands, the land tax shall be determined at the following rates:

  • inside the settlements – 1 percent
  • outside the settlements – 0.5 percent.

The transportation means are subject to property tax. The tax base for motor vehicles is their engine power.

Import duty

From 2015 Jan 2 Armenia entered into the Eurasian Economic Unio (EAEU). Member states of the EAEU are Republic of Armenia, Republic of Belarus, Republic of Kazakhstan, Kyrgyz Republic and Russian Federation.

  • Import from the EAEU member states No customs duties are levied.
  • Import from non-EAEU member states Customs duties are calculated based on common customs tariff rates of the Union, with the exception of customs duties for the goods imported to the Republic of Armenia within the timeframes specified by appendix 4 of the Joining of the Republic of Armenia to the Treaty on Eurasian Economic Union, for which rates different from the Union’s common customs tariff rates are established.

However, without any customs duties individuals may transport through the customs border of the RA as accompanying cargo goods not exceeding the equivalent of established RA Government Decrees.

© 2017 KPMG Armenia cjsc, a company incorporated under the Laws of the Republic of Armenia, a subsidiary of KPMG Europe LLP, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Tax rates are checked regularly by KPMG member firms; however, please confirm tax rates with the country's tax authority before using them to make business decisions.

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