Investor Presentaiton
Investment guide Armenia 27
Individual obligations of Income
Tax reporting: The RA residents, per
the results of the tax year, have an
obligation of submitting electronically
the Income Calculation before April
15 of the year following the reporting
year with the exception (in particular)
of the following cases:
When income received is taxed by
tax agents;
When income received by the
individual, consisted exclusively of
the non-taxable types of income
(deductible income).
Income Tax reporting by tax agents:
An income tax report is submitted by
tax agents (employers) electronically
on a monthly basis.
Other Issues - Mandatory
funded pension scheme
Starting from July 1, 2014, social
payments are due for employees
who were born on or after 1 January,
1974 (including foreign citizens), who
receive basic income, i.e. who work
in an Armenian incorporated company
and receive income taxable by income
tax are subject to social payment.
The base for calculation of the social
payment is the basic income, which
is salary and other payments equal
thereto which are subject to taxation
under the RA Law "On Income Tax."
Currently the social payment rate
is 5% for gross salaries up to AMD
500,000 and 10% on amounts
exceeding AMD 500,000.
However, currently there is maximum
threshold of basic salary established
by Law for applying the social
payment rate. Thus up to 01 July 2020
the maximum monthly threshold
of basic income is established
AMD 500,000. This means that up
to 01 July 2020 the monthly social
payments calculated on gross salary
exceeding AMD 500,000, shall be
AMD 25,000 (500,000x5%).
The Employer, as a tax agent, is
obliged to withhold the amount of
social payment as well as submit
monthly personalized reports to the
tax authorities on calculated income,
amounts of tax and social payments
withheld from individuals within the
terms established by the RA Law "On
Income Tax".
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