# Armenia individual income tax preparation v0.4

## Who this applies to

Prepare 2026 personal-income-tax workpapers for resident/nonresident individuals, keeping the separate 2025 declaration filed in 2026 clearly identified. Article 140 treats individual entrepreneurs/notaries as PIT taxpayers for personal income. Keep that ledger separate from registered entrepreneurial business income; the ordinary registered-entrepreneur method below uses profit tax. [Code Articles 103–105, 140–143][code]

Article 25 residence includes 183 or more days, arrival/departure days, vital interests and the stated state-service limb. Fewer days do not alone establish nonresidence. Residence under the specified limbs on a day produces whole-tax-year domestic residence. Residents bring domestic/foreign personal income into scope; nonresidents bring Armenian-source income subject to Article 141's exceptions. Citizenship, immigration residence permission and tax residence are separate inputs. [25, 140–144][code]

Classify source under Article 144, including Armenian payer/PE employment and civil contracts, passive-income connections and the nonresident employer/PE staff provision. Tax residence alone does not settle a treaty tie-breaker or foreign payroll/social obligation. Obtain the actual treaty, period and certificates before using a treaty conclusion. [20, 25, 107, 141, 144][code]; [cross-border method](am-cross-border.md)

## Rates, bands and thresholds

| Personal-income category | Domestic rule | 2026 primary source |
|---|---|---|
| Ordinary taxable salary/other general income | 20% | [150(1)][code] |
| Qualifying listed R&D/high-technology occupations in approved work | Conditional 10% salary rate; status/list/commission requirements, not every IT job | [150(1.1)][code] |
| Ordinary interest | General rate, currently 20%, after securities exemptions | [150(5), 149][code] |
| Bank-deposit / specified public-offer or regulated-market debt interest | 10%, after applicable securities exemptions | [150(5.1), 149][code] |
| Royalties | 10% | [150(6)][code] |
| Rent | 10%, plus another 10% on annual aggregate rent over AMD 60 million | [150(7)][code] |
| Ordinary taxable dividends | 5%, with Article 149 exemptions | [150(8), 149][code] |
| Ordinary taxable property alienation | 10% on the stated total income; exemptions/special categories tested first | [150(9), 147][code] |
| Qualifying unique/nonfungible or ledger-maintenance/validation reward crypto-asset alienation | 1% on the stated income; classification required | [150(9.1), 147(16.1)][code] |
| Developer's specified building/apartment/premises sale | 20%, with special base rules | [145, 150(11)][code] |
| Registered individual entrepreneur, general system, business base | 23% profit tax, separately from personal PIT | [125(3.1)][code] |
| Entrepreneur's qualifying turnover-tax activities | AMD 5,000 profit tax per liable month, separately from turnover tax and social payments | [125(3), 136(4)][code] |

Do not import corporate nonresident interest rates or tax every personal receipt at 20%. Special pensions, document-deficient payments, delayed passive income and other Article 150 categories need separate analysis. The examples below use established ordinary scope and no unmentioned exemption. Future bank-dividend changes in HO-385-N start under its February 2027 transition; other future dates printed beside Article 150 are not current October 2026 rates. [147–150][code]; [HO-385-N 14][future]

## The base

### Classify each receipt and event

Maintain a ledger by person, source, category, period, payer/tax-agent status, accrual/payment event, gross/noncash value, legal exemption, taxable base, rate, withholding and declaration treatment. Article 142 uses accrual for stated salary/other categories and cash rules for passive/civil-contract/other receipts, with special conversion and noncash events. Its July 2026 paragraph 2 imports Article 132(2)'s event rules **except the corporate dividend-decision limb**. Do not copy the corporate decision-before-cash example into personal dividend PIT. [142, 132][code]; [HO-234-N Article 28][july]

Article 143 deducts the legally non-taxable income in Article 147, not a general business-expense allowance from every personal receipt. A loan receipt, account transfer, gift, sale, pension, salary and service fee are different facts. Reconcile documentary origin before treating a bank credit as taxable income or exempt capital. Personal spending and corporate depreciation are not universal PIT deductions. [140–147][code]

Article 147 includes particular benefits, pensions under its stated domestic/foreign pension-law scope, gifts/inheritances from natural persons with exceptions, and specified property receipts. Voluntary-pension receipts have separate treatment. Its private-person property-sale rule has developer/crypto exceptions, and land has its own provision. Verify the exact asset, seller/purchaser status, documentation and anti-substitution facts; do not claim all gifts, property gains or foreign retirement receipts are always exempt. [147(1), (2), (13), (16), (16.1), (38), 150(3)–(4)][code]

Article 149 securities exemptions depend on instrument, listing/date and income character. Exceptions include payment instruments, remuneration disguised as securities, specified property-backed participations sold within the statutory period and ordinary dividends. A broker statement or the word capital gain alone does not establish exemption. No hypothetical listing or universal zero capital-gains rate. Full instrument, crypto, developer/pledged-property and special foreign-pension implementation remains open. [145–150][code]

### Rent and withholding reconciliation

Calculate ordinary rent PIT and separately aggregate all annual received rent for the AMD 60-million excess test, including tax-agent rent. The extra 10% applies only to the excess, on top of ordinary 10%, not 20% on the whole year's rent. Reconcile tax already withheld so the annual calculation does not levy the same basic 10% twice. Rental registration/notification, related-use, special valuations and current form acceptance still need their own evidence. [150(7), 152, 156][code]; [300-N Annex 3, row 3.11][form]

Article 150(13) has a special 20% rule for the specified missing supporting documents, with an alternative-document exception containing identity and other requirements. It is not a default when a description is unfamiliar. Article 150(14)–(14.2) has delayed passive-income and conversion rules: cash basis does not mean tax can always be postponed indefinitely. Separate agent/no-agent and special bank/debt-interest exclusions. [150][code]

### Foreign tax and other levies

Article 20 permits corresponding foreign tax collected under foreign law, capped at Armenian tax on those foreign taxable objects. First establish source/category/exemption and matching tax, period and currency. Then distinguish the foreign-object cap from deductible credit exceeding the year's corresponding liability: only the latter has Article 20(4)'s subsequent-year route. Foreign tax above the object cap is not automatically carryable/refundable. Keep proof of collection and the foreign-authority-certified information required by the actual annual-form instructions. [20][code]; [300-N Annex 3 instructions, paragraph 11][form]

Mandatory pension, stamp and universal-health obligations are separate from personal PIT; a PIT calculation does not certify employee net pay or total annual liabilities. Their current status, bases and assessment/payment rules are open in the retained payroll/social Guides. Voluntary-pension deductions and social-expense reimbursement also have distinct statutory rules; do not deduct an assumed amount from salary because it appears as a bank debit. [147, 147.1, 158][code]

### Registered entrepreneur: compute the business tax separately

For an individual entrepreneur registered in Armenia, Article 104(1)(1) brings domestic and foreign business gross income into profit tax and expressly excludes personal income. Reconcile business receipts, statutory income adjustments and documented deductions under Articles 110–123, removing personal items and applying each relevant limitation. Article 105(1)(1) taxes the positive difference: `business taxable profit = max(statutory gross income − permitted deductions, 0)`. Apply **23%** under Article 125(3.1) in the general system. A negative business result creates no negative current tax; loss-use eligibility and aging need their own Article 123 test. The [corporate base Guide](am-corporate-income-tax.md) supplies the shared deduction branches, but its ordinary company 18% rate must not replace the entrepreneur's 23%. [103–105, 110–125][code]

For example, established business gross income of AMD 20 million less permitted deductions of AMD 12 million gives AMD 8 million taxable profit and AMD 1.84 million profit tax before applicable credits/advances. Personal salary, rent or gifts remain in their own personal ledger. This does not establish special-regime eligibility or a deduction from a bank statement alone. [104–105, 125(3.1)][code]

For qualifying Chapter 55 turnover-tax activities, Article 125(3) instead fixes profit tax at **AMD 5,000 per month regardless of the number of those activities**. It is final profit tax for those activities, not the turnover tax itself or the separate AMD 5,000 social payment where that applies. Count liable months; exclude only full months covered by a properly filed statutory suspension. Ordinary suspension cannot take effect for this purpose before filing; resumption uses the statutory declaration dates. A newly registered entrepreneur has the special route of filing by the end of the day after registration to suspend from registration. A zero-income month or partial month is not automatically exempt or prorated. Nine liable months give AMD 45,000 profit tax. Micro-business and midyear regime changes require the separate eligibility/entry/exit test in the [regime Guide](armenia-tax-optimization.md). [125(3), 253–254, 267–269][code]

## Deadlines and filing

| Obligation / period | Statutory date or window | Primary source |
|---|---|---|
| 2025 annual personal declaration, filed in 2026 | 2 March–1 November 2026 inclusive; relevant annual tax by 1 November | [HO-76-N 5(2)][transition] |
| 2026 annual declaration, filed in 2027 | 2 March–1 July 2027 inclusive; opening moves to next working day if needed; relevant annual tax by 1 July | [156(4)/(4.1), 158][code] |
| Ordinary tax-agent monthly PIT return/payment | By 20th inclusive of following month | [156(1), 158(1)][code] |
| Article 151(2) personal simplified monthly return/payment | By 20th inclusive of following month | [156(4)(1), 158(2)(1)][code] |
| General-system registered entrepreneur, annual profit-tax return and payment | By 20 April inclusive of following tax year | [134(1), 136(1)][code] |
| Turnover-regime entrepreneur, fixed monthly profit-tax amount | Annual payment by 20 April inclusive of following tax year | [136(4)][code] |

These are statutory dates before any separately established adjustment or extension. Preserve the income year and filing year. The November transition is not the general deadline for all later years. An Armenian tax-agent employer is not a reason to ignore annual declaration obligations. [151, 156, 158][code]; [HO-76-N][transition]

For 2025 onward, Article 156(4.1) broadly covers Armenian-resident Armenian citizens as at 31 December, excluding those minor then. Foreign citizens outside that population still require a separate Article 156(4) untaxed-income/other-obligation test; do not conclude no filing solely from nationality. Earlier phased 2023/2024 cohorts are not the full 2025/2026 population. [156][code]; [HO-324-N 5, 10][prefill]

### Non-taxable receipts: decide whether they must still be reported

Tax exemption and declaration omission are separate tests. First establish the receipt's actual non-taxable status. Article 156(4.1) excludes non-taxable/deducted income from the declarant's spouse, parents, sisters, brothers, children (including adopting/adopted relationships), grandparents and grandchildren. It is not a blanket exemption for salary paid by a family-owned company. [156(4.1), 147][code]

Government Decision **225-N of 26 February 2026**, effective 28 February and applicable to reporting years **2024 onward**, implements additional omission rules. Its Annex 1 includes actual loan proceeds (excluding forgiveness/nonrepayment agreements, including the stated limitation-period event), qualifying employment-expense reimbursements within statutory limits (excluding unused-leave compensation), and the specified employer health premiums. Use the exact category and qualification, rather than omitting all reimbursements or cancelled debt. The employer's ordinary health-premium limb is limited to AMD 10,000 per income month; statutory universal-health premiums have their separately stated limb. [225-N paragraphs 1–3, Annex 1(4), (6), (8)][omissions]

Annex 2 has an **inclusive AMD 1 million per one-off receipt** omission threshold for the following otherwise non-taxable categories. It is not an annual allowance or a tax-free band. Above the threshold, report the **whole receipt**, not only the excess; voluntary reporting below the threshold is allowed. [225-N paragraph 2, Annex 2][omissions]

| Annex 2 item | Receipt class whose exact conditions must be met |
|---|---|
| 1 | Inherited/gifted property or money from natural persons outside the statutory family definition |
| 2 | Assets, works or services received free from noncommercial organisations |
| 3 | Free assets, works, services or beneficiary payments under the stated public-body decisions or from the specified foreign states/international bodies |
| 4 | Proceeds from own-property sales to non-family natural persons who are neither entrepreneurs nor notaries; the specified land-sale limb is excluded from this threshold |
| 5 | Borrowings from non-family natural persons, excluding the specified forgiveness/nonrepayment cases |
| 6 | One-off assistance upon death of an employee's family member |
| 7 | Proceeds of gold/precious-stone sales to the specifically described gold-market tax agent |

Thus an established qualifying non-family cash gift of AMD 1 million can be omitted; an otherwise identical AMD 1.2 million gift is reported as AMD 1.2 million of non-taxable income. Reporting that gift does not itself create PIT. Keep receipt-level evidence and the family/category test before applying the threshold. The general loan item in Annex 1 uses `վարկ`, while Annex 2(5) separately describes natural-person `փոխառություն`; do not apply the unlimited loan omission to every private borrowing. [225-N paragraph 2 and Annexes 1–2][omissions]

Current Article 156.1 requires authority prefill and describes amendment/submission and deemed submission if the prefilled declaration is not actively submitted by the deadline. Deemed submission is not evidence the database contains all foreign/rental/noncash income, payment has occurred or a refund is approved. Review the actual prefill and correct missing/wrong facts. Current Article 53 has separate ID-card timing conditions; do not import older secondary descriptions of a generic 20th-day extension. [53, 54, 156.1][code]; [HO-324-N 2, 6, 10][prefill]

### Social expenses are a tax reimbursement, with an actual settlement route

Use current **1067-N** with **956-N**, not a blanket deduction from taxable income. The route covers resident Armenian citizens obliged to file under 156(4.1), who submit an **electronically signed** annual declaration in the following year. Current 1067-N separately permits the 2024 declaration in 2025 or 2026. Deemed submission is not the required signed submission. [147.1, 158(3)][code]; [1067-N Annex 2][socialscope]; [956-N Annex 1–3][socialsettlement]

Check the provider, service, payment and invoice before entering an expense. Eligible health cost is the stated Armenian insurer's health package; the dental extension is expressly for **2024 and 2025**, not a general 2026 dental credit. Listed Armenian education programmes include the specified formal levels, listed extracurricular/endorsed non-formal programmes, and school textbook rental. Endorsement is tested at invoice date for years after 2024. The special social-package/health-sector worker restriction applies to the insurance component; their eligible non-beneficiary family members remain a distinct case. [1067-N Annex 6–7][socialscope]

The declarant must pay **noncash** and be identified as payer in the payment evidence, except the specific textbook-data route. A reimbursed employer insurance package qualifies only for the employee's reimbursement amount and the insurer's document must identify that employee as the social spender. Retain both payer and service recipient PSNs (or statutory absence certificates) in the required invoice. For family expenses, the family is spouse, parents, children and adoption relationships, supported by marriage/birth/adoption evidence. Textbooks use the Education authority's pupil/parent data rather than inventing an ordinary paid-invoice requirement. [1067-N Annex 2.1–5][socialscope]

First cap eligible health at **AMD 50,000/year**, education at **AMD 100,000/year** (with the **AMD 3,000/pupil/year** textbook sublimit), and the declarant's combined self/family total at **AMD 100,000/year**. These are expense/reimbursement limits, not separate allowances for every family member. Then cap by the positive tax available after already refunded mortgage-interest, eligible tuition and reinvested-dividend amounts. Apply reimbursement against independently declared tax payable first; pay the positive balance. Any remaining cash reimbursement is bounded by the relevant monthly tax available after those other refunds. Avoid using the same tax twice. [1067-N Annex 8–9][socialscope]; [956-N Annex 3–6][socialsettlement]

Ordinary reimbursable cash is credited to the unified account under 956-N(7); a bank return follows **Code 327 and current 246-N Annex 2**, not an automatic transfer merely because the annual form shows a negative figure. Reconcile actual available funds after statutory allocations, then submit TIN/name/address, applicable PSN, requested AMD, bank/account and signed application. Code 327(2)'s clock is **20 days from the application**, or **10** with the valid law-abiding taxpayer certificate; it is not a guaranteed period from annual-declaration submission. The current 246-N form's item 4 is repealed despite the older instruction still referring to it. [325, 327][code]; [246-N Annex 2](https://www.arlis.am/hy/acts/144655/latest); [956-N(7)][socialsettlement]

Actual **1411-N**, effective the day after publication and applying to **2025 and later expense years**, adds restricted/secret-information branches. Restricted payroll data is reported by the employer by next-year 1 March; secret-income reimbursement uses the tax agent and actual **956-N Form 1**. Form 1 records TIN/name/PSN/address/contact, the same-year mortgage/tuition/dividend tax already returned, signed annual declaration and expense evidence; bank evidence can be requested. The agent subtracts amounts already credited by SRC and pays only the positive balance with the next salary. This is not the ordinary declarant's universal employer-refund route. [956-N(6.1)–(8)/Form 1][socialsettlement]; [1411-N 1–2][socialchange]

### Mortgage-interest reimbursement uses a separate quarterly test

First route by loan date. **Code 160 and the following 1321-N method apply to loans obtained from 1 January 2018.** The continuing 2014–2017 cohort follows the separate old-law method below under Code 445(1)(5). For the 2018-onward route, the borrower must be an employee with a qualifying resident-financial-institution mortgage actually used for the specified direct-developer/state/community purchase or individual-house construction. A co-borrower must also be an owner/co-owner. Do not include unrelated passive-income PIT or an entrepreneur who is not also an employee. Check the **AMD 55 million acquisition-price ceiling**, one-contract limit, actual interest paid excluding subsidy and advance-paid amounts, wage tax fully settled by the relevant agent/employee, and the location/date/permit screen. Each employer's unpaid tax is excluded until that employer settles and a new request is made. [160][code]; [1321-N Annex 1–5.5][mortgagerefund]

The combined borrower/co-borrower quarterly ceiling is **AMD 1.5 million for loans from 1 January 2018 through 31 December 2024** and **AMD 750,000 for loans from 1 January 2025**. Compute each quarter separately as the eligible interest/wage-tax/remaining combined-ceiling minimum; unused quarterly ceiling is not an annual allowance. Applications share the ceiling in filing order. The Yerevan exclusions phase by zone for loans after 1 July 2022, 1 January 2023, 1 July 2023 and 1 January 2025; apply current 1321-N(5.1)(2.1)'s **pre-1 January 2022 construction-permit-decision exception**. The named four-region restriction starts for loans after 1 January **2027**, and the remaining-region restriction after 1 January **2029**, each with the stated border-settlement exception. Do not apply these future loan-date gates to a 2026 loan. [160(2)–(4)][code]; [1321-N 5.1, 8.1–8.2][mortgagerefund]

Separate initial **entitlement confirmation** from each electronic **refund request**. Initial evidence under 1321-N(5) is identity/residency evidence, PSN/TIN as applicable, loan contract/notarised copy and schedule, registered property/purchase or development right, direct-developer/state/community certificate or valid construction permit, and the purchase/development contract. Ordinary entitlement approval/refusal is within **15 working days**, the specified development-right case **30**. After entitlement, the request supplies the borrower's own valid bank account and consent to CBA account checking; the borrower also consents to the lender's interest certificate reaching SRC electronically through **ACRA**, identifying borrower/loan/period/paid scheduled interest. Subsequent quarters use the electronic request alone if the underlying data is unchanged. Notify relevant document changes by the next month's **10th**, with supporting documents; the repayment-schedule exception is specific. Use the actual current **SRC 1274-L**, incorporated by **940-L of 30 July 2024**, for the form map below. [1321-N 5–7][mortgagerefund]; [1274-L Annexes 1–4][mortgageforms]

| Actual 1274-L annex | Required data and controls |
|---|---|
| Annex 1, entitlement application (PDF page 3) | Borrower full name, PSN/absence certificate, identity document, TIN, Armenian residence, acquired/constructed property address, contact details and loan date/number. The heir branch has its separate identity block; it is not an ordinary co-borrower substitution. |
| Annex 2, quarterly request (page 4) | Borrower/PSN/TIN/address/property/contact, year/quarter, selected loan date/number, own bank/account, employer TIN/name and wage tax paid, eligible interest, requested amount, calculated refund and actual refund. |
| Annex 3, electronic method (pages 5–9) | Register/access the SRC individual-accounts portal; select the income-tax refund service and year/quarter/loan. Identity/loan and matched payer tax/ACRA interest fields are populated from the relevant records; the claimant selects/enters the permitted request and own account and gives CBA-check consent. Reconcile other co-borrower refunds, earlier requests/other-loan uses and notified excess before the actual refund and legal cap. An in-process request by another borrower, overlapping tuition refund, missing entitlement/tax/ACRA data, unsettled tax, invalid account or unaddressed notified excess triggers its rejection conditions. Corrected lender data is notified to affected claimants; a refund notice or displayed calculated amount is not settled cash. |
| Annex 4, lender/ACRA certificate (page 10) | Loan number/date, borrower/co-borrower identities/PSN/TIN, year/quarter, monthly scheduled interest, due dates, actual interest paid excluding subsidy and advance-paid amounts, and quarter total. |
| Annex 5, restricted-payroll information (pages 11–12) | Separate employer electronic information process and Form 5: worker identity/PSN, year/quarter, salary/equivalent amount, wage tax paid and correction indicator. Do not manufacture public monthly payroll rows for restricted data. |

The SRC Annex 3's general 15-working-day entitlement language is read subject to Government 1321-N's **30-working-day development-right branch**. Apply the higher Government rule for that stated case rather than silently deleting it from the workpaper. [1274-L Annex 3(4)][mortgageforms]; [1321-N(5.1)][mortgagerefund]

Request refusal is notified within **three working days** for the prescribed grounds, including unsettled wage tax, missing interest/data evidence, overlapping tuition refund, invalid account, disqualifying changed facts or unresolved notified excess. Without refusal grounds, SRC sends the Treasury payment instruction within **three working days after request**; the bank transfer clock is separately **three working days after that instruction**. Reconcile later corrected wage tax and excess/short refunds: excess can be offset with notice and consent against eligible other quarters; otherwise the prescribed demand/recovery route applies. Underpayment or a bank rejection uses a corrected/new request, not an invented automatic repeat. [160(5)][code]; [1321-N 8–15][mortgagerefund]

### Continuing 2014–2017 mortgages use old Article 8.2 and current 205-N

Code **445(1)(5)** preserves old Income Tax Law **8.2** for the mortgage cohort obtained from **1 November 2014 through 31 December 2017**. Old 8.2(1) requires the qualifying resident-financial-institution loan obtained after 1 November 2014 and actually used for the stated direct-developer/state/community apartment purchase or individual-house construction. Its development-right extension requires the developer contract in the specified 2014–2017 window and state registration **before 1 July 2021**; buying from a person who holds that developer-contract right is excluded. The old-law cohort remains relevant to refunds in 2026. Do not import Code 160's 2018-onward **55 million price, one-contract or 1.5 million/750,000 quarterly caps** into it. [445(1)(5)][code]; [old 8.2(1), (7)–(8)][oldmortgagelaw]

For an employee, compute **each quarter separately**: refund is the lower of eligible scheduled interest actually paid and that quarter's qualifying wage/equivalent-payment PIT, with the relevant tax fully settled. An unpaid employer's portion is excluded until settlement and a renewed request. For example, an established qualifying 2016 loan, 1.8 million paid eligible interest and 2 million settled wage PIT gives **1.8 million**, rather than the modern route's 1.5 million cap. Old 8.2 also preserves an **annual entrepreneur/notary income-tax branch**: cap by the actual legally eligible annual calculated and paid **income tax**, and where the borrower also claims as an employee, first subtract the year's employee refunds/refundable amounts from annual eligible interest. A current 23% business **profit-tax** charge is not evidence of refundable income tax under this old provision; zero eligible income tax gives no annual refund under that limb. Never use the same interest twice. [old 8.2(1)–(4)][oldmortgagelaw]; [205-N Annex 2–4][oldmortgageprocedure]

The current **SRC 1274-L** incorporation by **940-L** expressly cites both **205-N** and **1321-N** in its preamble; the actual Annexes 1–5 form map above therefore serves this legacy route too. Apply the old-law entitlement, calculation and 205-N refusal grounds when completing the shared forms, rather than importing the modern cap from a portal screen. [1274-L preamble and Annexes 1–5][mortgageforms]

Use current **205-N**, not a wholesale copy of 1321-N's conditions. Its initial entitlement application attaches borrower identity/residence, PSN or absence certificate/TIN where applicable, loan contract or notarised copy and schedule, registered ownership/property/development right, direct-developer certificate or individual-house construction permit, and purchase/development contract. The qualifying heir route has separate inheritance and other heirs' consent conditions. Entitlement approval/refusal has the **15-working-day** ordinary or **30-working-day** development-right clock; the latter applications start from **1 January 2023**. After entitlement approval, submit the electronic refund request with the borrower's own bank/account, with CBA ownership and at-least-eight-day validity checking consent. Give the lender consent to send scheduled paid interest through **ACRA**, excluding subsidy; identify borrower/PSN/TIN, loan/date, quarter and paid eligible interest. Restricted payroll uses the prescribed employer information route. For pre-2022 claim quarters, request the corresponding historic lender information explicitly. [205-N Annex 5–5.5][oldmortgageprocedure]

Later unchanged periods use only the electronic request; changes to the underlying entitlement documents, except the specified schedule exception, must be notified with evidence by the **next month's 10th**. Apply **205-N(8)**'s own refusal grounds: unsettled relevant income tax, missing prescribed information, wrong account or notified excess without the required offset consent. Refusal notice is within **three working days**. Without grounds, SRC issues the Treasury instruction within **three working days after request**, followed by the separate **three-working-day** transfer clock after instruction. Requests are processed in filing order. Corrected tax triggers recalculation; notified excess is offset with consent or enters the prescribed demand/recovery route, an underpayment requires a new request, and a bank rejection requires corrected details and a new request. These clocks do not make displayed calculated amounts settled cash. [old 8.2(4)][oldmortgagelaw]; [205-N Annex 6–15][oldmortgageprocedure]

### Reinvested dividends are not an automatic dividend exemption

For a dividend invested in the **same resident paying organisation's** statutory/share capital during the **receipt tax year**, Code 159(4) and current **1371-N** refund the qualifying invested amount **up to the actual tax paid on that organisation's dividends in that year**. Do not multiply the investment by 5% again. Apply the additional current restrictions for dividends arising from periods from 1 January 2025: the paying entity's final, unappealable findings in the application year or prior year under the specified Code 408/410/415, repeated 412 or repeated 416 branches can bar the refund. [159(4)][code]; [1371-N Annex 1–5][dividendrefund]

Use actual **1371-N Form 1**: claimant name/PSN/residence/contact, date, year/requested amount, bank/account, payer name/TIN and signature. Attach identity, **Form 2** payer certificate of dividend/tax paid, **Form 3** LLC/statutory-capital certificate, **Form 3.1** Central Depository share nominal-value increase with subcustodian confirmation where relevant, or **Form 3.2** cooperative contribution evidence, plus investment proof and the required register extract. A balance-sheet label without the statutory capital evidence is insufficient. [1371-N 3–4/Forms 1–3.2][dividendrefund]

The authority gives **10 working days** to correct incomplete/inconsistent documents. Without refusal grounds it issues **Form 4** conclusion within **five working days after application**; supervisory acceptance/instruction or rejection has its separate **five-working-day** clock, followed by the **three-working-day** bank transfer clock after instruction. These sequential checks do not create an unconditional five-day cash guarantee. Keep this refund separate from the original withholding, quarterly mortgage reimbursement and annual social-expense settlement. [1371-N 5–9/Form 4][dividendrefund]

[socialscope]: https://www.arlis.am/hy/acts/206432/latest
[socialsettlement]: https://www.arlis.am/hy/acts/231590/latest
[socialchange]: https://www.arlis.am/hy/acts/231583/latest
[mortgageforms]: https://www.src.am/storage/menu_contents_227/hr_hhpek_2021_1274l_66ab2c9012300.pdf
[mortgagerefund]: https://www.arlis.am/hy/acts/200943/latest
[oldmortgagelaw]: https://www.arlis.am/hy/acts/158682/latest
[oldmortgageprocedure]: https://www.arlis.am/hy/acts/96164/latest
[dividendrefund]: https://www.arlis.am/hy/acts/200942/latest


### Actual annual form

The April 2026 consolidation of **300-N** provides the annual declaration in Annex 3. Separate tax-agent receipts and no-agent receipts; do not move all withheld salary into the no-agent taxable base. The initially retrieved October 2025–April 2026 text is historical for later filing; follow its current incorporation rather than a date in the page title. [300-N][form]

| Published Annex 3 item | Reconciliation |
|---|---|
| 3.4 / 3.5 / 3.7 | No-agent salary, civil receipts and resulting taxable category; voluntary deductions need actual eligibility/sign treatment |
| 3.8 / 3.9 | Royalty / interest, with correct instrument/category rate |
| 3.10 / 3.11 | No-agent basic rent / annual aggregate rent excess, including agent rent for the latter |
| 3.12–3.15 | Dividends / property / specified crypto / developer / stated participation categories; no generic exemption inferred from a row |
| 3.20–3.23 | Calculated PIT, foreign tax, deductible portion and payment balance; deductible field uses parenthesised sign convention |
| 3.24–3.25 | Separate no-agent salary/civil-income stamp calculation, not additional PIT |
| Section 4 | Social expenses and reimbursement, subject to actual government limits/procedure |

Source: actual [300-N Annex 3 form and targeted instructions][form]. Printed rate choices include historical/special possibilities, not authority to override 2026 Article 150. The workpapers below use positive deductions; field 3.23's printed addition to parenthesised 3.22 must be reconciled with its sign. Remaining settlement and correction procedures require verification; the ordinary receipt-omission method above comes from current 225-N and Article 156(4.1). No personal login or actual declaration was obtained.

### Entrepreneur's return and advances

An entrepreneur's midyear regime change requires dated ledgers, not applying 23% to the whole year's receipts. Apply Articles 254/267 eligibility, all-activity and linked-person tests, declarations and Articles 255/268 exit dates. On a micro exit, elect turnover tax within 20 days after exit if eligible, or enter the ordinary VAT system from exit under 59. The [regime Guide](armenia-tax-optimization.md) supplies the complete ordinary activity/aggregation and actual declaration/quarterly-return method. For a non-entrepreneur individual, Annex 3 activity, advance declaration/licence and the no-other-non-entrepreneur-labour condition are distinct from entrepreneur registration. [30, 59, 254–255, 267–270][code]

At turnover-to-ordinary exit, include post-exit business bases and Article 264's deduction bridge: reconstruct asset value with Article 121 depreciation during the special period, start ordinary depreciation deduction next month, prorate the specified exit-month costs, avoid repeating expense-reduction asset costs and convert unused tax reductions at the statutory activity multipliers (trade 10×, production 20×, catering 10×, other 15×). Direct micro-to-ordinary exit instead follows Article 272, including its listed administrative/sales/other/financial cost proration; it has no turnover-reduction multiplier. Keep personal income out of this business bridge. [103–105, 264, 272][code]

File the annual business profit-tax calculation under Article 134(1)/53 and pay by Article 136's 20 April deadline, separately from the personal declaration. Current **749-N Annex 1**, instruction 1, expressly includes registered entrepreneurs and excludes their personal income. It routes a full-year turnover-tax entrepreneur to **section 1, field 107 only**, calculated at the Article 125(3) monthly amount; sections 2–8 are not completed for that full-year case. A midyear switch is not that full-year exception: instruction 7 includes income from the point turnover-tax status ends, with the relevant deductions separately reconciled. [749-N Annex 1 instructions 1, 7, 36][profitform]

For the general-system case, map gross income to field 41, signed deductions to 84, result to 85, applicable relief to 86–87 and statutory rate calculation to 88. Ordinary advances appear as a deduction in 101, with the positive balance in 102 and payment in 104; do not deduct a payment twice or use the company-only historic minimum-tax rows for an entrepreneur. Whole AMD and parenthesised deductions are specified in instruction 1. **The printed instruction 19 for field 88 still cites Article 125(1)/128(2) and omits 125(3.1), although the latter expressly sets the general-system entrepreneur's 23% rate.** Use the statute for the rate; preserve the discrepancy and obtain the current authority field validation before submission. This is an implementation uncertainty, not authority to use 18%. [125(3.1)][code]; [749-N Annex 1 instructions 1, 19, 30–35][profitform]

General-system entrepreneurs fall within the resident-profit-payer advance rules. Test Article 135(5)'s registration-year and stated VAT-status exceptions first; properly declared suspension excuses only complete quarters under 135(7), not every month without revenue. Otherwise each quarter's advance is the **lower of 20% of adjusted prior-year profit tax and 2% of the defined preceding-quarter income**, due by the 20th of the quarter's last month. Paragraphs 2–3 govern excluded prior-tax amounts, VAT-return-based income, filing cutoffs and the pre-filing fallback. Keep calculated advances, cash paid and authority balances separate. [103–105, 135][code]; [detailed advance method](am-corporate-income-tax.md)

## Penalties and interest

Article 401 ordinary late-tax interest is 0.075% per day within its scope and 730-day cap. Article 402's 5%-per-completed-15-days late-return rule has a special start tied to the liability administrative act for natural persons who are not entrepreneurs/notaries, plus stop/maximum rules. Do not copy a company's late-return clock without checking the individual provision and deemed-submission facts. Article 403 under-declaration rules and exceptions require the actual report/assessment. Current filing, payment, correction and appeal/remedy facts must be established separately. [401–403, 53–54, 156.1][code]

## Cross-border points

Article 144 source and Article 20 foreign credit do not replace actual treaty employment/pension/interest/dividend/property articles, residence tie-breakers, PE/beneficial-receipt and relief procedures. Foreign employer payroll or online work is not automatically foreign-source, untaxed or entrepreneur income. Do not apply the corporate no-PE table to an individual. [20, 25, 140–144][code]; [cross-border method](am-cross-border.md)

## Two worked examples that recompute

Hypothetical AMD; each category/status, source, period, documentation and no further exemption/relief is assumed established. PIT only unless expressly stated.

### 1. Ordinary taxable salary

Established monthly taxable salary base 1 million, ordinary 20% rule: PIT 200,000. This is not net pay; pension/stamp/health and any lawful exclusion require separate calculations. [143, 150(1)][code]

```oa-check
name: Armenia ordinary salary PIT only
inputs:
  established_taxable_salary: 1000000
steps:
  - pit: established_taxable_salary * 0.20
expected:
  pit: 200000
```

### 3. Annual rent with basic withholding already paid

Received annual rent 72 million, ordinary basic 10% already withheld in full: 7.2 million. Excess over 60 million is 12 million; additional annual PIT 1.2 million, combined rent tax 8.4 million. Annual balance is the extra 1.2 million, not another 8.4 million. [150(7)][code]; [form 3.11][form]

```oa-check
name: Armenia annual rental excess and prior withholding
inputs:
  annual_rent: 72000000
  basic_withholding_paid: 7200000
steps:
  - basic_pit: annual_rent * 0.10
  - excess: max(annual_rent - 60000000, 0)
  - additional_pit: excess * 0.10
  - total_rent_pit: basic_pit + additional_pit
  - remaining_rent_pit: max(total_rent_pit - basic_withholding_paid, 0)
expected:
  excess: 12000000
  additional_pit: 1200000
  total_rent_pit: 8400000
  remaining_rent_pit: 1200000
```

## Ask the client first

- What reporting year, tax residence, citizenship at year end, age and immigration status apply?
- What are the actual payer/agent, income category, source and accrual/payment/noncash event for each receipt?
- Which exemption, instrument/listing, asset/buyer status or special R&D evidence changes the base/rate?
- What tax was withheld/collected, and what foreign-authority certificate and prior-credit records exist?
- What prefilled declaration, signed submission, payment, expense invoices, refund request or authority notice already exists?

Handoff: separate personal and business ledgers; receipt-level taxable/exempt/reportable decisions; exact year/date gates; PIT/withholding/foreign-credit bridge; entrepreneur profit tax and advance schedule; separate other-levy schedules; actual prefill/form/sign/payment acknowledgements; documented gaps. Ordinary regime transitions and the social-expense, mortgage and reinvested-dividend application/settlement methods are supplied. The [cross-border Guide](am-cross-border.md#personal-source-property-and-no-agent-filing) supplies the ordinary personal source/property, agent/no-agent and departure-filing integration; published-form discrepancies stay explicit against the statutory method. Specialist property/crypto/security and foreign-pension methods are separately excluded. Independent source-review records are preserved in the country research; named accountant attestation has not been obtained.

## Sources

Read on **24 October 2026**: targeted current Armenian Articles 20, 25, 140–158/156.1 and relevant 401–403; English translation with Armenian checks; actual HO-76-N and HO-324-N transitions; prior actual HO-234-N personal event and HO-385-N future gates; actual 300-N April 2026 Annex 3 and targeted instructions. No taxpayer facts, accepted filing, completed treaty analysis or professional attestation obtained.

| Primary source | URL | Read on |
|---|---|---|
| Current Armenian Code | https://www.arlis.am/hy/acts/215611/latest | 2026-10-24 |
| Supporting official English translation | https://www.arlis.am/en/acts/231892 | 2026-10-24 |
| HO-76-N filing/payment transition | https://www.arlis.am/hy/acts/206337 | 2026-10-24 |
| HO-324-N prefill/signed-refund/transition | https://www.arlis.am/hy/acts/215597 | 2026-10-24 |
| SRC official 2025-declaration reminder, discovery/context | https://www.src.am/am/getNews/1387 | 2026-10-24 |
| 300-N current April 2026 form | https://arlis.am/hy/acts/223829 | 2026-10-24 |
| HO-234-N personal-income payment events | https://www.arlis.am/hy/acts/226008 | 2026-10-24 |
| HO-385-N future dividend gate | https://www.arlis.am/hy/acts/228632 | 2026-10-24 |
| Current native Code: targeted entrepreneur 103–105, 125(3)/(3.1), 134–136; family exclusion 156(4.1) | https://www.arlis.am/hy/acts/215611/latest | 2026-10-25 |
| 225-N, operative clauses and targeted ordinary Annex 1/complete Annex 2 omission rules | https://www.arlis.am/hy/acts/221774/latest | 2026-10-25 |
| 749-N current Annex 1, entrepreneur scope, selected base/settlement fields and instructions | https://www.arlis.am/hy/acts/226558/latest | 2026-10-25 |
| Native Code, complete small-business Articles 30, 254–270, 272 and Annex 3; targeted 59(1) | https://www.arlis.am/hy/acts/215611/latest | 2026-10-26 |
| Native Code, complete 147.1, 158–160; current ordinary refund eligibility and caps | https://www.arlis.am/hy/acts/215611/latest | 2026-10-26 |
| Current 1067-N Annex 1–9, social-expense services/payment/invoice/family/caps | https://www.arlis.am/hy/acts/206432/latest | 2026-10-26 |
| Current 956-N Annex 1–8/Form 1 and actual 1411-N scope/commencement | https://www.arlis.am/hy/acts/231590/latest ; https://www.arlis.am/hy/acts/231583/latest | 2026-10-26 |
| Continuing old Income Tax Law 8.2, read with Code 445(1)(5); current 205-N Annex 1–15, including 2024 changes | https://www.arlis.am/hy/acts/158682/latest ; https://www.arlis.am/hy/acts/96164/latest | 2026-10-26 |
| Current 1321-N Annex 1–15, entitlement, quarterly request, data/ACRA/bank and correction routes | https://www.arlis.am/hy/acts/200943/latest | 2026-10-26 |
| Actual SRC 1274-L incorporated by 940-L; all 12 PDF pages visually read, Annexes 1–5 | https://www.src.am/storage/menu_contents_227/hr_hhpek_2021_1274l_66ab2c9012300.pdf | 2026-10-26 |
| Current 1371-N Annex 1–9 and targeted Forms 1–4, reinvestment evidence, restrictions and settlement | https://www.arlis.am/hy/acts/200942/latest | 2026-10-26 |
| Current 246-N Annex 2 bank-refund form, read with 325/327 and ordinary social settlement | https://www.arlis.am/hy/acts/144655/latest | 2026-10-26 |

[code]: https://www.arlis.am/hy/acts/215611/latest
[transition]: https://www.arlis.am/hy/acts/206337
[prefill]: https://www.arlis.am/hy/acts/215597
[form]: https://arlis.am/hy/acts/223829
[july]: https://www.arlis.am/hy/acts/226008
[future]: https://www.arlis.am/hy/acts/228632
[omissions]: https://www.arlis.am/hy/acts/221774/latest
[profitform]: https://www.arlis.am/hy/acts/226558/latest

**Not yet confirmed:** actual electronic handling of the stated entrepreneur rate/form and personal settlement-sign discrepancies. The ordinary social-expense, mortgage and dividend-reinvestment refund methods are supplied above. No live taxpayer return was accessed; this does not substitute for the statutory method or independent review.

> Contributed by Michael Cutajar.