Armenia Tax Optimization

Armenia Tax Optimization Skill v0.1

Tier 2 — research-verified. Sources: State Revenue Committee (SRC), PwC Armenia, Vardanyan & Partners, EasyTaxes. Figures must agree with armenia-income-tax.md / armenia-social-contributions.md. NOT yet signed off by an Armenian tax adviser. Aggressive positions are never advised; every suggestion must be reviewed.

Section 1 -- Quick Reference

Quick Reference

Field	Value
Country	Republic of Armenia
Currency	AMD (dram)
Headline levers	Turnover tax (single tax replacing CIT + VAT); micro-business 0%; general system 18% CIT
Dividends	5% withholding
Anti-avoidance	Professional/advisory services EXCLUDED from the special regimes (from 1 Jul 2025)

The Armenian headline is the TURNOVER-TAX regime — a single tax on revenue that replaces both profit tax and VAT for businesses under the threshold. But beware: from 1 July 2025 professional/advisory services (legal, accounting, consulting, IT-advisory, engineering, etc.) are excluded and must use the general system.

Section 2 -- Turnover-Tax (simplified) Regime

Turnover-Tax (simplified) Regime

Feature	Detail
Threshold	Annual sales < AMD 115,000,000 (~USD 291k)
Replaces	Profit tax and VAT — a single tax on revenue
Trade rate	10% (raised from 5% in 2025); since 2025 you can deduct 9.5% of documented purchase costs, with a 1%-of-turnover minimum effective floor
Other activities	Different turnover-tax rates apply by activity. [RESEARCH GAP — reviewer to confirm the rate for the specific activity.]

Section 3 -- Micro-Business (0%)

• 0% tax for annual sales < AMD 24,000,000 (~USD 61k), limited to specific activities (manufacturing, hospitality/accommodation, education, digital content creation, certain non-Yerevan retail, artisan work, etc.). (Vardanyan & Partners)

Section 4 -- General System & Extraction

General System & Extraction

Item	Rate
Sole proprietor (PE) profit tax	23%
LLC corporate tax	18%
Dividends	5% withholding
PIT (employment)	20% flat (per armenia-income-tax.md)

For an LLC: 18% CIT, then 5% on dividends → relatively low all-in extraction; retained profit is taxed at the corporate level.

Section 5 -- Red Lines (do not cross)

• Professional/advisory services exclusion — legal, accounting, audit, management consulting, market research, advertising, engineering, architectural, healthcare and similar advisory work cannot use the turnover-tax or micro-business regimes — they must operate under the general system (18% CIT + VAT). Misclassifying advisory work to claim the low regimes is a primary risk. AUDIT FLASH POINT. (from 1 Jul 2025)
• Genuine self-employment / substance requirement — Genuine self-employment / substance required.
• Mandatory health-insurance contribution from 2026 — Note the new mandatory health-insurance contribution from 2026 for higher earners (see armenia-income-tax.md) when modelling net position. (see armenia-income-tax.md)

PROHIBITIONS

• NEVER place professional/advisory-services income into the turnover-tax or micro-business regime (excluded from 1 Jul 2025).
• NEVER present the turnover tax as still 5% — the trade rate rose to 10% in 2025.
• NEVER ignore the AMD 115m / AMD 24m thresholds.
• NEVER contradict the rates in armenia-income-tax.md / armenia-social-contributions.md.
• NEVER present [RESEARCH GAP] figures as confirmed, nor optimisation as definitive advice — route to a licensed Armenian tax adviser.

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a licensed tax adviser in Armenia) before acting upon.

The most up-to-date, verified version of this skill is maintained at openaccountants.com. Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.