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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 ©2016 KPMG Armenia cjsc,. All rights reserved.
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