Armenia

Individual - Other taxes

Last reviewed - 13 July 2020

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.

Employees' contributions

From 1 July 2018, all employees, notaries, and individual entrepreneurs born after 1 January 1974 should make funded pension contributions

In parallel to the decrease in PIT rates, according to the RA “Law on funded pensions” the principle of equal participation by citizens and the state in respect of funded pension allocations will be restored.

In particular, starting from 1 July 2020 the maximum threshold for the calculation of the pension contribution will change and instead of AMD 500,000 it will become AMD 1,020,000 (15 times of minimum monthly salary of AMD 68,000).  Please note that from 1 January 2020 the minimum monthly salary is increased from AMD 55,000 to AMD 68,000.

From 1 July 2020 to 31 December 2020, the pension contribution payment should be calculated as follows:

  • 2,5% 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 37,500, if the monthly gross salary is more than AMD 500,000.

 

Additionaly, from 1 January 2021 to 31 December 2021, the pension contribution payment will be calculated as follows:

  • 3,5% 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 32,500, if the monthly gross salary is more than AMD 500,000.

Also, from 1 January 2022 to 31 December 2022, the pension contribution payment will be calculated as follows:

  • 4,5% 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 27,500, if the monthly gross salary is more than AMD 500,000.

 

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.

However, until 1 July 2020, the maximum amount of annual social payment is capped at AMD 300,000.

Consumption taxes

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 summary for more information.

Property tax

Property tax is assessed and collected at the municipal level on buildings, motor vehicles, and means of water transport. The tax rate on buildings is 0.3%, which is paid on the cadastral value. See the Other taxes section in the Corporate summary for more information.