Social security contributions
As of 1 July 2014, mandatory contributions to pension funds are applicable for both Armenian and foreign citizens who were born after 1 January 1974 (inclusive). However, employees were allowed to refuse the payment of social contributions until 1 July 2018 by submitting an appropriate application before 25 December 2014. Yet, the employees working in the public sector and employees who were not employed as of 1 July 2014 may not refuse to pay social payments.
From 1 July 2018, all employees, notaries, and individual entrepreneurs born after 1 January 1974 should make funded pension contributions.
The maximum threshold for the calculation of the pension contribution is AMD 1,125,000 (15 times the minimum monthly salary of AMD 75,000). Please note that from 1 January 2023 the minimum monthly salary is increased from AMD 68,000 to AMD 75,000.
From 1 January 2023, the pension contribution payment should be calculated as follows:
- 5% of the monthly gross salary if it is less than AMD 500,000.
- 10% of the monthly gross salary (but not more than the maximum threshold) minus AMD 25,000 if the monthly gross salary is more than AMD 500,000 (capped at AMD 87,500).
Contributions for entrepreneurs
An individual entrepreneur who participates in the scheme should make social payments in accordance to the following rates:
- An entrepreneur whose basic annual income does not exceed AMD 6 million should make monthly social payment in the amount of 5% of the gross income.
- If the annual gross income of an individual entrepreneur exceeds AMD 6 million, the payment in the amount of the difference of 10% of the income and AMD 300,000 should be withheld.
Value-added tax (VAT)
The standard rate of VAT on domestic sales of goods and services and the importation of goods is 20%. See the Other taxes section in the Corporate tax summary for more information.