Armenia legal and accounting and tax considerations in 2024

1. The standard corporate tax rate levied on all resident and non-resident entities in Armenia is at a flat rate of 20%. Tax returns are filed yearly and the fiscal year runs January 1^st to December 31^st. Taxes must be filed and paid by the 25^th of April of the year following the fiscal year. Fines are charged at the rate of i) 0.15% of the tax due for late payments ii) 5% of the total amount due for non-payment and iii) 50% of the total amount due for underreporting of taxable income;
2. Branches pay a corporate tax rate of 20% and there is no branch remittance tax in Armenia;
3. The standard VAT rate levied on provision of goods and services in Armenia is at a flat rate of 20%. VAT is not levied on exports;
4. Capital gains tax is not levied separately in Armenia and realized capital gains are subject to the regular corporate tax rate;
5. Withholding tax levied on i) dividends paid to non-residents at 10% ii) royalties paid to non-residents at 10% iii) interest paid to non-residents at 10% and iv) services at 20% to non-residents. Rents are taxed at the rate of 10%;
6. Losses incurred in a tax year can be carried forward for up to five years;
7. Employers must submit to the relevant authorities social security contributions on behalf of their employees at varying rates of between 24.4% to 36% depending on the monthly taxable income;
8. Property tax on buildings is levied at the rate of 0.3% while land tax is levied at the rate of 1%;
9. The Central Bank of Armenia does not impose foreign exchange controls and foreign investors can freely repatriate profits to other countries;
10. Armenia has concluded double tax avoidance treaties with 41 countries including Belgium, France, Germany, Spain, Switzerland and the United Kingdom;
11. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis.