Investor Presentaiton
28 Investment guide Armenia
Tax Privileges for IT Companies Tax Privileges for Exporters
Starting from 09.01.2015 Law
"On State support" entered into
force and according to law, startup
companies can apply for privileges,
particularly, the companies, and
Individual entrepreneurs, falling under
the criteria of the Law, do not pay
corporate tax/profit tax on income
related to IT activity, also the income
tax on these entities' employees
salary is calculated at 10% rate. The
privilege is effective only for the
period of certificate provided by RA
Government.
Tax privileges are applicable to
companies for which the following
criteria are met:
were created to implement only
activities provided by the law (in IT
sector),
were not created as a result of
reorganization of other entity,
are not a subsidiary of another
company,
number of employees does not
exceed 30.
Profit tax privileges
Favorable profit tax rates are applied
to the taxable profit of resident
taxpayers or group of involved
in export programs approved by
Armenian Government. However
to benefit from favorable rate the
taxpayers should meet to certain
conditions simultaneously:
-
The taxpayers should not be
involved in mining or processing
of metallic minerals, processing
and/or selling of precious stones,
precious metals and jewelry,
producing or selling products
taxable by excise tax.
minimum 40 billion AMD has
been entered into bank accounts
of taxpayers in the group from
export program
the taxpayers of the group does
not have any income from sale of
products, rendering of services
in Armenia, except for interest
income received from non-
residents on loans provided.
the sum of taxpayers revenue
from provision of services abroad
and custom value of exported
goods for current year exceeds
40 billion AMD. Moreover the
exports custom value for current
year should exceed the threshold
established by RA Government,
If all above conditions are met:
5% favorable rate applies to
the taxable profit, if the sum of
taxpayers revenue from provision
of services abroad and custom
value of exported goods for
current year exceeds 40 billion
AMD.
2% favorable rate applies to
the taxable profit, if the sum of
taxpayers revenue from provision
of services abroad and custom
value of exported goods for
current year exceeds 50 billion
AMD.
5% favorable rate is applied to the
taxable profit of taxpayers or group
of taxpayers involved in programs
approved by Armenian Government,
if taxpayers or group of taxpayers
operate in the field of construction
or installation exclusively outside the
territory of the Republic of Armenia.
Income tax privileges
The tax agents, who signed a working
agreement with residents of RA and
according to the agreement employee
worked exclusively outside the
territory of the Republic of Armenia,
within implementation of the program
according to Article 33 part 1.2 of RA
Law on "Profit Tax" calculates income
tax from employees' wages and equal
payments by the 13% rate.
KPMG
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