Armenia Self-Employed — Annual PIT Declaration & Regime Election

Establish the taxpayer's residency status, TIN (HVHH), and activity type to determine which tax regime applies for TY2025. Confirm whether the IE is on the general 20% PIT regime, turnover-tax (≤ AMD 115,000,000 prior-year sales), or micro-business (≤ AMD 24,000,000). Flag immediately if the activity is a professional or advisory service (legal, accounting, consulting, IT-advisory, engineering, advertising, healthcare advisory) — these are EXCLUDED from turnover-tax and micro-business from 1 July 2025 and must use the general system.

Collect all income documentation for TY2025 — bank statements from Armenian banks (Ameriabank, Ardshinbank, Acba, Inecobank, Converse Bank), invoices, platform payouts (Stripe, PayPal, Upwork, Wise), and any other source. For general-regime IE, also gather documented business expenses (office rent, accountancy fees, software subscriptions, marketing, bank charges, payment processing fees). Classify each transaction using the Armenian bank statement pattern library.

For IEs on the turnover-tax regime, verify that all four quarterly turnover-tax returns were filed on time and paid within 20 days of each quarter end. Compute the annual totals and reconcile against the quarterly declarations already submitted to the SRC. Identify any underpayment or missed quarter. Turnover-tax rates are: 10% trading & other, 7% production, 5% secondary raw materials, 1% high-tech — applied to gross turnover with no expense deductions.

Calculate mandatory funded pension contributions and (from 2026) universal health insurance contributions for the IE. Pension is computed on annual gross income: 5% if income ≤ AMD 6,000,000; 10% × income minus AMD 300,000 if income > AMD 6,000,000, subject to the AMD 13,500,000 annual income cap (maximum contribution AMD 1,050,000). Health insurance applies from 2026 at AMD 129,600/year if annual gross income exceeds AMD 2,400,001.

Prepare the annual individual income tax declaration for TY2025, due by 1 November 2026, filed at file-online.taxservice.am. For general-regime IE: compute 20% PIT on net taxable income (gross income less documented deductible expenses). For turnover-tax IE: the annual declaration reconciles against quarterly payments already made. Consolidate all income streams (business income, dividends, interest, royalties, rent) each at their applicable schedular rate.

Final review of the annual declaration for arithmetic accuracy and regime compliance before submission. Check that no professional/advisory-service income has been misclassified under the turnover-tax or micro-business regime (audit flash point since July 2025). Submit via file-online.taxservice.am and record the confirmation reference. Arrange payment of any balance due. Retain all source documents for the statutory retention period.