MOSTAR Armenia Tax Advisory

ARMENIA — TAX ADVISORY

Tax Advisory in Armenia — 1% IT Tax and Accounting

1% IT simplified tax for qualifying companies. Monthly accounting from $150 fixed. VAT, payroll, and annual compliance handled remotely.

1%
IT simplified tax rate
from $150
Monthly accounting
18%
Standard profit tax rate
10%
Personal income tax (flat)

Tax regimes

Armenian tax regimes —
which applies to your company

Most MOSTAR clients qualify for the 1% IT simplified regime. We confirm before you register.

1% IT Simplified Regime
1% of gross revenue. Requires IT services income and annual turnover under AMD ~115 million (~$290,000). Replaces profit tax and VAT. Most favourable regime in the region.
General Tax Regime
18% corporate profit tax on net income + 20% VAT on taxable supplies + 10% dividend withholding. Applies to all companies not on simplified regimes.
Turnover Tax (Non-IT)
5% turnover tax available to non-IT companies with turnover under AMD 115 million. No VAT obligation. MOSTAR advises whether this or general regime applies.
Personal income tax
10% flat rate on employment income. Social contributions apply. MOSTAR handles payroll calculation and filing monthly.
Dividend distribution
Dividends paid to founders are subject to 5% withholding tax. MOSTAR advises on the most efficient distribution structure for your situation.
VAT registration
Mandatory above AMD 115 million turnover. Companies on IT simplified regime are VAT-exempt below that threshold. MOSTAR monitors the threshold and advises when registration is required.

Pricing

Fixed monthly accounting —
no hourly billing

Quoted at onboarding based on transaction volume and headcount. No surprises.

Solo / IE
$150 per month
  • Monthly bookkeeping
  • Tax returns (1% IT regime)
  • Up to 1 payroll
  • Annual report
  • SRC correspondence
Get started →
Tax setup (one-off)
$200 one-off
  • Tax registration at SRC
  • 1% IT regime application
  • Chart of accounts setup
  • Onboarding call
Included when combined with company formation
Discuss setup →

The process

From registration
to ongoing compliance

01

Eligibility check

We confirm which tax regime applies to your business model, revenue structure, and turnover. Quote provided.

Day 0

02

Tax registration

Registration with the State Revenue Committee. 1% IT simplified regime application filed on registration day if applicable.

Day 1

03

Ongoing accounting

Monthly bookkeeping, tax returns, and payroll managed on fixed monthly fee. Calendar managed by MOSTAR — you receive filings for review before submission.

Ongoing

Common questions

Armenian tax —
what clients ask

What is the 1% IT tax?

A simplified turnover tax of 1% on gross revenue, replacing standard 18% profit tax and 20% VAT. Available to IT services companies with turnover under AMD ~115 million/year.

What counts as IT services for the 1% regime?

Software development, SaaS, app development, IT consulting, design, and related digital services. MOSTAR confirms eligibility based on your specific service description.

Do I need to pay taxes in Armenia if I'm not a resident?

The Armenian company pays Armenian taxes regardless of where founders live. Personal income of non-resident founders is taxed only on Armenian-source income unless a double tax treaty applies.

Can MOSTAR handle the accounting remotely?

Yes. All bookkeeping, filings, and payroll are handled remotely. You share documents via a shared folder; MOSTAR files electronically with the SRC.

What happens if my turnover exceeds the 1% threshold?

We monitor turnover monthly and advise when you approach the threshold. At that point you either switch to the general regime or restructure. No penalties if managed proactively.