Deductions from gross income for employees may include the following:
- Paid benefits, except benefits defined by the Law of Armenia on Temporary Disability Benefits.
- All types of paid pension benefits, except pension benefits paid within the framework of participation to voluntary funded pension plans in accordance with the established procedure.
- Insurance benefits, except benefits (including pensions) to be received in accordance with the established procedure at the expense of voluntary funded pension insurance contributions made by a taxpayer on one’s own behalf and/or by a third person (including employer) for a taxpayer on conditions of voluntary funded pension insurance, in accordance with the procedure defined by the legislation of Armenia.
- Insurance premiums paid by employers for their hired employees’ health insurance, at a maximum of AMD 10,000 per month.
- Amounts of single-sum assistance in case of employee’s or family member’s death.
- The assets, works, and services received free of charge from non-commercial organisations.
- The monetary prizes and benefits in kind received at competitions, up to AMD 50,000 per prize.
The income of the individual entrepreneur is taxed by corporate income tax (CIT) starting from 1 January 2018 (see the Deductions section in the Corporate tax summary).