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Armenia - Other taxes and levies

Armenia - Other taxes and levies

Taxation of international executives

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Related content

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

Sources:

  • RA Law "On Property Tax" No-HO-491-N, 30 December 2002
  • RA Law "On Land Tax" No.-HO-101, 14 February 1994, HN-1005-1
  • RA Law “On compensation for fallen or damaged servicemen during the defense of the Republic of Armenia”, No-HO-245-N, 15 December 2016;
  • RA Law “On funded pension” No-HO-244-N, 22.12.2010;
  • RA Tax Code No.HO-165-N, 04 October 2016. 

Social security tax

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

Starting from 1 January 2013 there are no social security taxes. Instead, currently social payments are withheld from salaries of certain group of employees, falling under the law requirements.

The base for calculation of the social payment is the basic income, which is salary and other payments equal thereto which are subject to taxation by income tax.

The Employer, as a tax agent, is obliged to withhold the amount of social payment as well as submit monthly personalized reports to the tax authorities on calculated income, amounts of tax and social payments withheld from individuals within the terms established by the RA Tax Code.

No social payments are made by employers.

The social payment rates are the following:

Year

Monthly gross salary

Social payment rate

Maximum monthly threshold

2020

Up to AMD500,000

2.5%

Till 01.07.2020 the maximum monthly threshold of the calculation basis for social payment is AMD500,000.

 

This means that the maximum amount of the Social Payment till 01.07.20 is capped at AMD12,500.

 

Starting 01.07.2020 the maximum monthly threshold of the calculation basis for social payment is AMD1,020,000. This means that the maximum amount of the Social Payment will be capped at AMD64,500.

AMD500,000 and above

10% - 37,500

2021

Up to AMD500,000

3.5%

AMD500,000 and above

10% - 32,500

2022

Up to AMD500,000

4.5%

AMD500,000 and above

10% - 27,500

2023

Up to AMD500,000

5%

AMD500,000 and above

10% - 25,000

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 3 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 AMD1,000 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 2 Jan 2015 Armenia entered into the Eurasian Economic Union (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.

Foreign Financial Assets

Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?  

No.

Footnote

1. In terms of RA Tax Code, the place where a person’s family or economic interests are concentrated shall be considered the center of the person’s vital interest. Interests of a person shall be deemed; in particular, to be located in RA, if the house or apartment where the person’s family resides is therein, or the principal personal or family property, as well as the principal place of the economic (professional) activity is located therein.

Disclaimer

All information contained in this publication is summarized by KPMG Armenia LLC, the Armenian member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on Tax Code of the Republic of Armenia of 2016 and subsequent amendments.

© 2021 “KPMG Armenia” LLC, a company incorporated under the Laws of the Republic of Armenia and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.


For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

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