Individuals are classified into two categories for personal income tax purposes:
- Residents are liable for tax on their worldwide income.
- Non-residents are liable for tax only on their Armenian-source income.
Unified Income Tax rates
Income from royalties and interest (if not exempt) is subject to 10% tax. If paid by a tax agent (i.e. legal entity, individual entrepreneur), tax should be withheld at source.
Income from lease of property is subject to 10% tax. If the income from lease exceeds AMD 58.35 million during the tax year, the individual should pay 10% income tax in addition to the tax withheld by the tax agent.
The income from the sale of property is taxed at 10% or 20% (depending on the type of property and whether sold to a tax agent or individual). The sale of non-entrepreneurial property to individuals is exempt from tax.
Dividends received by foreigners are subject to 10% income tax (from dividends on the income generated after 1 January 2017), and dividends received by Armenian citizens are subject to 5% income tax (from dividends on the income generated after 1 January 2018).
The tax withheld from the dividends is subject to refund if the dividend received from a resident entity is invested in the capital of the same resident entity during the same tax year.
Other income paid by a tax agent is subject to final withholding on a monthly basis. The taxable base is the gross income minus deductible income.
|Taxable base (AMD)
||Unified Income Tax rate
||AMD 34,500 + 28% of the amount in excess of AMD 150,000
||AMD 552,500 + 36% of the amount in excess of AMD 2,000,000