Investor Presentaiton
Investment guide Armenia 25
(works) from the territory of Armenia.
The main difference between zero
rating and exemption is that in the
case of exemption the VAT paid to the
supplier is not compensated.
Reporting period: Every quarter (or
every month, if the taxable turnover
of the previous year exceeded AMD
100mln (USD 200,000). VAT taxpayers
are obliged to submit VAT reports to
tax authorities and pay VAT by the
20th day of the month following the
reporting period.
Tax Invoices: VAT payers are obliged
to issue tax invoices for goods
supplied and services rendered.
Tax invoices should be issued only
electronically.
E-Reporting: Starting from January
1, 2012 the companies and individual
entrepreneurs which by the results of
the previous reporting year have VAT
taxable turnover of more than AMD
58.35 million (approximately USD
116,000) must submit tax returns to
the tax authority electronically.
Turnover tax
The turnover tax is a substitute of VAT
and profit tax for legal entities and VAT
for private entrepreneurs.
Turnover tax payers: The turnover
tax is applicable for taxpayers with
previous year revenues from the sale
of goods and provision of services
not exceeding AMD 115.0 million
(approximately USD 230,000), with
some exceptions.
The taxable object: The taxable
object is the turnover of goods
delivered and services rendered for
the reporting period and other income
received. For determining the taxable
object income is recognized by accrual
method.
Turnover tax rates: The turnover tax
rates are the following:
Type of Income
Income from
Rate
5%
commercial/trade
activities
Income from operating
activities
3.5%
Rent income, interest,
royalties, income from
sale of assets
10%
Income from notaries
activities
20%
Income from other
activities
5%
Until December 1, 2018 turnover tax
on income from sale of secondary raw
materials is calculated by the rate of
1.5% on taxable base.
Income Tax
Tax payers: In Armenia Income Tax is
paid by RA resident and non-resident
individuals.
Residents are the persons who have
spent 183 days or more in Armenia
in
any twelve month period starting
or ending in a tax year, or whose
vital interests are located in the RA
(home, family, property and business),
irrespective of the citizenship.
Tax object: For RA residents the tax
object is taxable income received
in Armenia and outside of Armenia,
non-residents will have an Income
Tax liability solely on income received
from Armenian sources.
Types of income which are subject
to Income Tax: wages and salaries,
interest, income from donations
and assistance (unless specifically
exempt), royalties, rental income,
benefits in kind, income from
entrepreneurial activities received by
soul entrepreneur, etc.
For most of the employees their
employer will withhold the income tax
and pay to the tax authorities as tax
agent.
Taxable income: The taxable income
is the positive difference between the
gross income of the taxpayer and the
deductions made in accordance with
the provisions of the RA Law "On
Income Tax".
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