Investor Presentaiton
24 Investment guide Armenia
In case the non-resident company is not registered in Armenia, taxation of income derived from Armenian
sources is performed by a tax agent at the following rates:
Type of Income
Insurance compensation, reinsurance payments and income received from freight
Dividends, interests, royalty, income from the lease of property, increase in the value of
property and other passive income (with the exception of the income received from the
freight)
Income from other services provided by non-residents, as well as income from services
provided by non-residents to Armenian residents outside Armenia, which include consulting,
legal, accounting, management services, expertise, marketing, advertising, translating,
engineering and other similar services.
Amount of
the Profit Tax
5%
10%
20%
Double Taxation Treaties: Currently
Armenia has signed Double Tax
Treaties with the following countries:
Austria, Belarus, Belgium, Bulgaria,
Canada, China, Croatia, Cyprus,
Czech Republic, Estonia, Finland,
France, Georgia, Germany, Greece,
Hungary, India, Iran, Ireland, Italy,
Kazakhstan, Kuwait, Latvia, Lebanon,
Lithuania, Luxembourg, Moldova, the
Netherlands, Poland, Qatar, Romania,
Russia, Spain, Switzerland, Syria,
Slovenia, Thailand, Turkmenistan,
Ukraine, the United Arab Emirates,
the United Kingdom and Northern
Ireland.
Value Added Tax
VAT payers: VAT payers are
individuals and legal entities that
carry out economic (entrepreneurial)
activities and perform the VAT taxable
transactions on the territory of the RA.
VAT taxable transactions:
-
Delivery (supply) of goods for
compensation;
Rendering of services for any form
of compensation;
Free (partially free) delivery of
goods or provision of services;
Importation of goods under
the "Release for domestic
consumption" customs
procedure.
VAT rate: The rate of VAT is 20
percent of taxable turnover.
Privileges: The RA Law "On VAT"
specifies the types of transactions
that are not taxable by VAT (these
trans-actions are out of the scope
of VAT), the types of activities that
are exempt from VAT (insurance,
most banking and financial activities,
scientific and research works, sales
of newspapers and magazines,
procurement and supply of goods
and provision of services arising from
loans and grants made by international
organizations for the realization of
programs in Armenia, etc.), as well
as transactions for which zero rate
of VAT is applied. The zero rate of
VAT is, in general, applied to the
exportation of goods and services
KPMG
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