Investor Presentaiton
Investment guide Armenia 23
Reporting period: Taxpayers have to
submit their Profit Tax return to their
local tax authority before April 15 of
the year following the reporting year.
The amount of the Profit Tax should
be transferred to the State Budget not
later than April 25 of the year following
the reporting year. The reporting year
end is 31 December for all companies.
When establishing the amount of
the Profit Tax liability, the income and
expenditure are calculated on the
accruals basis.
The key Profit Tax implications for
resident and non-resident registered
entities are presented in the table
below.
Profit Tax
Tax object
Tax methodology
Tax losses
Dividends
received
Prepayments
Residents
Taxable profit received on the territory of
Armenia, as well as outside Armenia
The taxable profit is the positive
difference between income recognized
for taxation purposes and allowances
established by law (expenses, losses,
other allowances).
Tax losses that arose during the last 5
years are deducted when calculating the
taxable profit.
Dividends received are deducted from
the gross income when calculating the
taxable profit.
Prepayments are made on a quarterly
basis in the amount of the 18.75% of the
previous year actual Profit tax.
Non-residents registered in Armenia
The taxable profit derived only from Armenian
sources.
The taxable profit can be established:
1. as the positive difference between income
recognized for taxation purposes and
allowances established by law (expenses,
other allowances); or
2. using one of the indirect methods defined by
legislation (proportion of revenue, proportion
of expenses, proportion of number of staff
of Armenian subdivision in overall revenue,
expenses, number of staff of non-resident)
Losses are not deducted.
Dividends received are taxed.
Prepayments are made on a half-annual basis
in the amount of 1/4 of the previous year actual
Profit tax, if the previous year actual Profit tax
exceeded AMD 2 mln (USD 4,000).
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