GUIDE · ARMENIA

Armenia IT Tax Incentives

Save your time. Everything you need on Armenia's 1% IT turnover-tax regime — eligibility, the 20-day deadline, and the three state subsidies that stack on top. Updated for 2026.

PDF · 3 pages · English & Russian · Updated 2026

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What's inside

Three pages, no fluff,
just what you need to act

01

Two tax regimes — side-by-side

General Regime (18% income + 20% VAT) vs Simplified Regime (1% turnover, no VAT). Every parameter that matters.

02

Three state subsidies that stack on top

60% income tax subsidy on migrant specialists. 60% subsidy on new hires for 3 years. 50% subsidy on training.

03

Key conditions you must get right

Activity classification, 20-day election deadline, AMD 115M turnover cap, structuring choices that determine eligibility.

04

Direct answers to the 4 most-asked questions

Is the 1% guaranteed? Can foreigners use it? Is Armenia a tax haven? What's the legal basis? No corporate hedging.

Quick answers

Frequently asked,
directly answered

Is the 1% IT tax rate guaranteed?
Yes, but only for companies correctly classified as "high-tech activity" under the Armenian Tax Code, and operating under the Simplified Regime. Classification is verified by the State Revenue Committee. The rate is locked in until December 31, 2031.
Can foreigners use these incentives?
Yes. There are no nationality restrictions on founders, shareholders, or directors. 100% foreign-owned Armenian LLCs and IEs qualify on the same terms as locally-owned companies.
What happens if I miss the 20-day deadline?
The deadline is absolute — there is no grace period and no retroactive election. If you miss it, the company defaults to the General Regime (18% corporate income tax + 20% VAT) for the entire calendar year. Next opportunity to elect Simplified is by 20 February of the following year.
Is Armenia a tax haven?
No — Armenia is a fully-reporting OECD-aligned jurisdiction with 50+ double tax treaties, full substance requirements, and standard transparency obligations. The 1% IT rate is a competitive incentive, not a haven structure. That's actually why it works for international clients with US/EU customers.
Why is this guide free?
Because clear information is the best filter. Founders who read this guide and decide they need help are pre-qualified — they understand what they're buying. We'd rather have informed clients than gated leads. If you need a structure built around the 1% regime, book a free consultation.
AA

Written by

Arianna Adamyan

Corporate Lawyer · Yerevan, Armenia

Practising Armenian corporate law since 2019. Has structured 120+ companies across 4 jurisdictions. Specialises in IT, fintech, and real estate. Native Armenian, Russian, and English speaker.

Read the guide. Then talk to us.

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