Expatriate tax ebook - Armenia

Basis of taxation

Charge to tax
Residence
Income from employment
Source of employment
Benefits (in kind)
Expatriate concessions
Relief for foreign taxes
Deductions against income

Charge to tax
For a resident the taxable income received within or outside the territory of the Republic of Armenia is considered the object of taxation.
For a non-resident the taxable income received from Armenian sources is considered the object of taxation.

Residence
Individuals, regardless of their citizenship, are considered Armenian tax residents if they are spending more than 183 days of 12 months period starting or ending in a calendar year, or whose center of vital interests is in the Republic of Armenia. The center of a person's vital interests is the place where a person's family or economic interests are. Interests of a person shall be deemed, in particular, to be located in the Republic of Armenia, provided the house or apartment where the person's family resides is therein, or the principal personal or family property, as well as the principal place of implementation of the economic (professional) activity, is located therein.

Income from employment
Labor costs in the Republic of Armenia and other payments deemed equal thereto are considered to be income from employment e.g. salary, wages, bonuses, commissions, gratuities, allowances, etc.

As an expatriate receives income from Armenian sources, he/she becomes chargeable for income tax.

Tax shall be withheld by a tax agent (employer) from income paid to individuals. When paying income to foreign citizens and stateless persons tax shall be withheld (imposed) by a tax agent (employer) at the source of payment of the income.

The minimum non-chargeable salary in the Republic of Armenia is 30,000 AMD. This is the amount of personal allowances. Income of the RA resident non-citizens from salaries and wages is taxed at progressive rates ranging from 10 to 20%, without making personal allowances. Amount of tax withheld at these rates shall be considered as the final amount of the Income Tax, with the exception of cases when the non-citizen is a resident. In this case the non-citizens must apply to the Tax Authorities and file appropriate tax return to get back the amount of personal allowance.

Source of employment
An employment contract concluded with any Armenian employer is considered to be source of employment in the Republic of Armenia

Benefits (in kind)
In-kind (non-monetary income) shall be included in gross income (including the case of withholding of the tax by a tax agent) at the fixed (regulated) prices or, in case of the absence of such prices, at free (market) prices, pursuant to the procedure established by the Government of the Republic of Armenia.

Expatriate concessions
Expatriate concessions are not available.

Relief for foreign taxes
Income tax paid (withdrawn) by tax residents in Armenia shall be reduced in the amount of the tax withdrawn from them in foreign countries.

Armenia also concluded (ratified) double taxation treaties with a number of states. e.g. Belarus, Bulgaria, China, Georgia, Greece, France, Iran, Latvia, Lebanon, Switzerland, Finland, Lithuania, the Netherlands, Romania, Russia, Thailand, Turkmenistan, Ukraine, Qatar, Italy, Estonia, India, Austria, the United Arab Emirates, Poland, Belgium, Canada, Moldova, Syria.

Deductions against income
The taxation of foreign citizens and stateless persons shall be performed on the total amount of the paid income with implementation of deductions only in terms of income received from securities and business trips. No personal allowances are applicable.

Information about Armenia: