Taxes & fees

Direct taxes

  • Income tax is taxed from:
    • (hired) employee’s income(s) in the scope of employment or services’ provision contracts = 15%,
    • employees’ income(s) of certified IT companies within the period of validity defined for the certificate = 5%
    • insurance-type allocations of non-resident (foreign) citizens = 5%
    • interest(s) = 5%,
    • income obtained from royalties, property rent and income that is paid for the purchase of property from individuals = 6% .
  • Profit tax = 10%, except for:
    • income received for the part of these activities (as well as other incomes received from  the following legal entities  = 18%
    • credit organizations, banks, insurance and reinsurance companies,
    • stock market professionals, pawnshops,
    • entities trading foreign currency (exchange),
    • currency (exchange) dealer-brokers,
    • entities extracting metal and (or) producing (processing) metal concentrate,
    • entities extracting (or) producing (processing) of fuel and energy raw materials.
  • Property tax (estimated from cadastral value):
    • Public-industrial buildings = 0.3% ,
    • Residential buildings = 0% – 0.8%
  • Land tax
    • Estimated net income from agricultural lands = 10%
    • Cadastral assessment value for non-agricultural lands = 0.5% – 1%

Indirect taxes

  • Excise tax = is defined per product unit (read more)
  • Value Added Tax (VAT) = 20% (read more)

Payments:

  • Accumulative pension payment = 2.5%

2.5% of salary if it does not exceed 500,000 AMD, 10% – in the amount exceeding 500,000 AMD

Business (entrepreneurial) income = 5% for up to 6 000 000 AMD, 10% – for the amount exceeding 6 000 000 AMD

  • Stamp payment: 1 500 – 15 000 AMD
  • Environmental fees

Simplified tax regimes/procedures for certain types of activities

  • Trade tax (2% of sales turnover, 3% from January 1, 2022) (read more)
  • Fixed fees
  • Patent fees

Tax benefits for investors

If the investments are ≥ 100 million AMD, the deduction on the amount of profit tax shall be applied as follows:

– 100% within the first 3 years,

– 50% for the next 2 years

but no more than 10% of the total investment value.

Actual investments made by the founder (participant) within three years preceding the year prior to the year of submitting the application to the Evaluation Committee[1] for the rating of investments made in the statutory capital of the resident, are exempt of being taxed, except for –

  • credit organizations, banks, insurance and reinsurance companies,
  • stock market professionals, pawnshops,
  • entities trading foreign currency (exchange),
  • currency (exchange) dealer-brokers,
  • entities extracting metal and (or) producing (processing) metal concentrate,
  • entities extracting (or) producing (processing) of fuel and energy raw materials,


Sale of agricultural products by legal entities and individual entrepreneurs producing (processing) agricultural products in the Republic of Artsakh is exempt from VAT.

Agriculture

The following taxpayers are exempt from the taxes according to the laws of the Republic of Artsakh “On Profit Tax”, “On Income Tax“, “On Value Added Tax”.

  • Taxpayers engaged in the production of agricultural products in terms of income from the sale of agricultural products produced by them,

Production of handmade carpets

Sale of handmade carpets produced in Artsakh by a direct manufacturer.

Information technology sector

The companies, being issued with a certificate in accordance with the ՛՛Law on State Support in the Field of Information Technologies՛՛, shall receive the following benefits/privileges during the validity period of the certificate:

  • Income tax from the salary paid to the employees of the company and other income equal to it is calculated at a rate of 5%;
  • The company is completely exempt from paying profit tax on the sale of information technologies.

[1] The Committee is established by the Government of Artsakh to assess the investments and make decisions on issuing tax benefits/privileges.