Investor Presentaiton
22 Investment guide Armenia
Insurance of bank deposits
The bank deposits of individuals are
insured in the Republic of Armenia.
The limit of an insured deposit
amount in a bank is AMD 10 million
(approximately USD 20,000) for
deposits only in Armenian currency
and AMD 5 million (approximately
USD 10,000) for deposits only in
foreign currency.
Insurance
There is one type of mandatory
insurance in Armenia: motor vehicle
liability insurance. Other types of
insurances are not mandatory.
Anti-money-laundering and
terrorism financing legislation
Armenia has detailed regulations on
anti-money-laundering and to combat
against terrorism financing. The
Central Bank of Armenia exercises
supervision on compliance with the
legislation and imposes sanctions in
the field to combat money laundering
and terrorism financing.
Currency regulation
As a general rule transactions in
Armenia have to be made in Armenian
drams. There are several cases
(mainly, transactions between resident
and non-resident legal entities and
sole entrepreneurs) where use of
foreign currency is permitted.
KPMG
The judicial system of the
Republic of Armenia
A three-tier judicial system currently
exists in Armenia:
I. First Instance Courts
a. Courts of general jurisdiction
(hearing civil and criminal cases);
b. Administrative court (hearing
claims against administrative
bodies).
II. Courts of Appeal
a. Civil Court of Appeal;
b. Criminal Court of Appeal;
c. Administrative Court of Appeal.
III. Cassation Court of the Republic
of Armenia
In the field of constitutional justice
the highest judicial power is the
Constitutional Court of the Republic
of Armenia.
Note: The judicial precedent is applied
in Armenia.
Labor Market
The Labor Code is the main Legal
Act regulating employment relations
in Armenia. The Code sets forth
the main provisions related to
employment agreements, collective
agreements, length of a working
day, rest time, duration of vacations,
calculation of salaries and other
payments to employees, termination
of employment relations, duration and
payment for special leave, etc.
Taxation Overview²
In general, the following state and
municipal taxes are defined in the
Republic of Armenia:
State taxes: Profit Tax, Income Tax,
Excise Tax, Value Added Tax.
The law may specify turnover tax,
presumptive payments or license
fees as a replacement to the above
mentioned taxes.
Municipal taxes:
Property Tax, Land Tax.
Profit Tax
Tax payers: Profit Tax in Armenia
is payable both by residents
(organizations established in the RA)
and non-residents (organizations
created outside the RA and their
subdivisions registered in Armenia).
Taxable profit: Profit Tax is calculated
on the basis of the taxable profit
representing the positive difference
between the total income from the
sale of goods, services, assets and
other property, less total expenses
which are deductible by law.
Profit tax rate: For residents and
registered non-residents the general
rate of Profit Tax is currently 20%
of the taxable profit. For investment
funds 0.01% is applied to the net
assets of the fund.
2 Based on the legislation effective 1 March 2016.
2016 KPMG Armenia cjsc,. All rights reserved.View entire presentation