Armenia Investment Income Guide 2026

Overview — Investment Income Taxation

Armenia taxes investment income primarily through withholding taxes at source. The withholding tax is generally a final tax for resident individuals, meaning no further tax reporting is required. For companies, withheld tax is creditable against corporate tax. For non-residents, withholding tax rates may be reduced under applicable double tax treaties. The State Revenue Committee administers all withholding tax under the Tax Code. The investment landscape in Armenia includes Treasury bills, corporate bonds, listed shares, bank deposits, and mutual funds.

Dividends — 5% WHT for Residents

Dividends paid by Armenian-resident companies are subject to withholding tax at 5% for resident shareholders. This is a final tax for resident individuals, meaning the dividend income is not included in the individual's IIT assessment. For corporate shareholders, the 5% WHT is a creditable advance payment against their CIT liability. For non-residents, the dividend WHT rate is generally 10%, reduced to 5% under most double tax treaties. Dividends paid by companies benefiting from the 0% IT sector CIT rate are also subject to 5% WHT when distributed.

Interest Income

Interest income is taxed as ordinary income at the flat 20% IIT rate for individuals. Key points:

• Bank deposits — interest is subject to 20% WHT (final for individuals)
• Corporate bonds — interest is subject to 20% WHT
• Government securities — interest on Armenian government bonds and Treasury bills is exempt from tax
• Foreign currency deposits — interest is subject to 20% WHT

The exemption on government securities interest is an important incentive for investors. Banks and financial institutions deduct the WHT at source before crediting interest to the account holder.

Capital Gains from Securities

As noted in the capital gains guide, gains from the disposal of shares listed on the Armenian Stock Exchange (AMX) are exempt from tax. Gains from unlisted shares and other securities are treated as ordinary income and taxed at 20% IIT (individuals) or 18% CIT (companies). Government securities are exempt from both income tax and capital gains tax. The exemption for listed shares is designed to encourage investment in the Armenian capital market.

Mutual Funds & Collective Investment Schemes

Income received from mutual funds and collective investment schemes in Armenia is generally tax-free in the hands of individual investors. The fund itself is taxed on its investment income at reduced rates. Distributions to individual investors are not subject to additional tax. For corporate investors, distributions may be subject to standard CIT rates. The Central Bank of Armenia regulates all collective investment schemes. Income from equity funds, bond funds, and money market funds is eligible for the exemption.

FAQs

Do I need to report dividend income on my tax return?

If you are a resident individual, the 5% WHT on dividends is final, so no further reporting is needed. Non-residents and corporate shareholders should report and claim treaty relief where applicable.

Are foreign investment income and capital gains taxable in Armenia?

Yes, tax residents are taxed on worldwide investment income. Foreign dividends, interest, and capital gains should be declared in the annual tax return. Foreign tax credits may be available under DTTs.

Can I claim a refund if WHT exceeds my tax liability?

Yes, where the WHT deducted exceeds the final tax liability (e.g., for treaty-eligible non-residents), you can claim a refund from the SRC by filing an annual return.

Disclaimer

This guide provides general information about Armenian investment income taxation 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.