Armenia Corporate Tax Guide 2026

Overview — Corporate Tax in Armenia

Corporate tax in Armenia is governed by the Tax Code of the Republic of Armenia and administered by the State Revenue Committee (SRC). A company is tax resident if it is incorporated under Armenian law or if its place of effective management is in Armenia. Resident companies are taxed on worldwide income; non-resident companies with a permanent establishment are taxed on Armenia-source income only. Companies must register for tax with the SRC and obtain a Taxpayer Identification Number (TIN). The tax year aligns with the calendar year. Annual returns are due by 20 April of the following year.

Standard Corporate Tax Rate — 18%

The standard CIT rate for resident companies in Armenia is 18% of taxable profits. Non-resident companies with a permanent establishment in Armenia are also taxed at 18% on Armenia-source income. Taxable profit is computed as gross revenue less allowable deductions including operating expenses, depreciation, interest costs (subject to thin capitalisation rules), and losses carried forward. Losses may be carried forward for up to 5 years. Capital gains are included in ordinary income and taxed at the standard 18% rate.

IT Sector — 0% CIT

Armenia offers a 0% corporate tax rate for certified IT companies. To qualify, a company must:

• Be certified by the Ministry of High-Tech Industry as an IT company
• Derive at least 90% of gross revenue from qualifying IT activities (software development, IT services, R&D)
• Maintain proper accounting records

The 0% CIT incentive applies for a 5-year period, renewable. Certified IT companies also benefit from 0% VAT on their exports of IT services. This incentive has been instrumental in developing Armenia's technology sector, with Yerevan becoming a regional tech hub. The 0% rate applies whether or not the company distributes profits as dividends.

Small Business — 0% CIT

Very small businesses with annual turnover below AMD 24 million may qualify for a 0% CIT regime. This regime is similar to the microbusiness IIT exemption but for corporate entities. Conditions include:

• Annual turnover below AMD 24 million
• No more than 5 employees
• Not engaged in excluded activities (trading in precious metals, notary, advocacy, audit, gambling)
• Not a VAT-registered taxpayer

If turnover exceeds AMD 24 million, the company loses small business status and must register for regular CIT from the following tax year.

Branches of Foreign Companies

Foreign companies operating through a branch in Armenia are taxed at 18% on Armenia-source profits. Branch profits remitted to the head office are not subject to additional withholding tax. However, the branch must register with the SRC and maintain separate accounting records for its Armenian operations. Foreign companies should consider the permanent establishment threshold — a foreign company without a fixed place of business in Armenia may not be subject to CIT if it does not meet the PE definition under Armenian tax law or applicable double tax treaty.

Depreciation & Capital Allowances

Armenia allows depreciation deductions for tax purposes using the straight-line method. Standard annual rates include:

• Buildings — 5% per annum
• Plant & machinery — 10–20% per annum depending on type
• Computer equipment & software — 25% per annum
• Motor vehicles — 20% per annum
• Intangible assets — amortised over useful life (typically 5–10 years)

FAQs

What is the penalty for late filing of corporate tax returns?

Late filing attracts a penalty of AMD 50,000 plus 0.04% interest per day on any unpaid tax. Additional penalties may apply for failure to maintain proper records or for tax evasion.

Can foreign companies claim treaty relief?

Yes, Armenia has over 50 double tax treaties including with Russia, the UK, France, Germany, Italy, Netherlands, UAE, and many others. Treaty relief may reduce withholding tax rates on dividends, interest, and royalties paid to non-residents.

Is there a minimum tax for loss-making companies?

Armenia does not have a turnover-based minimum tax. Loss-making companies may carry forward losses for up to 5 years against future profits. However, companies that are consistently loss-making may face SRC audit scrutiny.

Disclaimer

This guide provides general information about Armenian corporate tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Armenian tax advisor or the State Revenue Committee for advice specific to your situation. InvestmentKit does not provide tax advice.