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 the 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 and the principal personal or family property is located) or the place of implementation of the principal economic (professional) activity is 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.

Source of employment
An employment contract concluded with any Armenian employer (upon availability of a work permit) is considered to be a 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 when of the tax is withheld 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 
According to the local tax legislation income tax paid (withdrawn from) by tax residents in Armenia shall be reduced in the amount of the tax withdrawn from them in foreign countries. For non residents a statement on the taxes withheld in Armenia is provided upon request to have the tax amount appropriately reduced in the country of residence.

The relief issue is also regulated internationally in conformity with the double taxation treaties concluded (ratified) 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 of allowances (e.g. for business trips, per diems, etc.), except compensation amounts for unused vacation/s.

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