Armenia

The CIT for the resident companies implementing special construction projects exclusively outside Armenia and approved by the government is reduced to a 5% rate.

Taxpayers engaged in agricultural production are exempt from CIT on that income until 31 December 2024.

Taxpayers engaged in production of hand-made carpets are exempt from CIT on the income received from the sale of hand-made carpets.

Taxpayers operating in free economic zones are exempt from CIT in respect of income received from activities performed in free economic zones in Armenia. Armenian resident companies implementing a business plan approved by the government may deduct the amount of the annual salaries for the new jobs created from the CIT liability of that year, but not greater than 30% of the actual CIT calculated. The incentive is applicable for five fiscal years, in addition to the year of the start of the business.

The government of the Republic of Armenia provides the following tax incentives to start-ups and exiting companies in the IT sector:

• According to the Law ’On State Support to IT Industry‘, IT start-ups are exempt from CIT, as well as use a reduced PIT flat rate of 10% instead of the general 20% rate. In order to be able to access incentives, the IT companies should submit an application to The Ministry of High-Tech Industry for support․ The deadline for applications is set to 1 November 2023. Moreover, the certificates issued after 1 January 2019 are valid until 31 December 2023 inclusive.
• The government decree on the state support to organisations and individual entrepreneurs of IT sector N 399-Լ, dated 24 March 2022, gives opportunities to return 50% of paid PIT to legal entities and individual entrepreneurs operating in IT sector for the newly created jobs. State support to beneficiaries can be calculated and provided for the month of March 2022 and the following 11 months. The application deadline for the state support is 1 May 2023.
• The government decree on state support to organisations and individual entrepreneurs of IT sector N 1863-Լ, dated 01 December 2022 gives opportunities to the companies in IT sector to return up to 95% of paid PIT. The application deadline for the state support is 1 February 2023.

Foreign tax credit

Tax residents are allowed to credit foreign taxes paid on income received abroad against their Armenian tax liabilities. The amount of foreign tax credit is limited to the amount of Armenian tax that would arise from the equivalent income in Armenia.