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Armenia

Taxes

Want to setup a company? This article will educate you on the tax laws for an ApS which is the most common legal entity in Armenia.

Armenia imposes taxes on corporate income, whether accrued onshore or offshore. The usual estimated rate for income earned abroad, from our research, and this is not personal tax advice, is 20%. The country doesn't have known exemptions to remit back income earned abroad. Taxes are reasonable in Armenia because the highest corporation tax rate is 20%. This ranks Armenia as 67th when compared to CIT globally.

The value added tax (VAT) rate in AM is 20.00%, that ranks Armenia as 134th overall with regards to value added tax rate worldwide. In terms of other taxation, an employer will not contribute to a social security fund and an employee may contribute 5.00%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 103hours. Contributing to this is the number of yearly labor tax payments, which is 1 in AM.

Thin capitalisation standards are in play. This refers to any sort of requirements on given company with respect todebt-to-asset ratios. Dividends distributed between resident companies are tax-exempted. Dividends received from a foreign entity are subject to corporate income tax standard rate. Dividends are profits payments, voted by the board, to a particular class of shareholders. Dividends can be either shares of stock, cash payments, or other property. Capital Gains are considered ordinary business income and subject to CIT. Capital gains from the sale of shares will be taxed at a 0% rate from January 2018. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 10%. Which means that the taxman expects relevant legal entities to pay tax on at least 10% of payments offshore on interests. The dividends withholding tax rate is 10%. This should be interpreted that a LLC may pay tax on at least 10% of dividends remitted abroad. The royalties withholding tax rate 10%. This means that the taxman expects ApS's to automatically withhold 10% of royalty payments to non-residents.
There is no known tax on wealth in Armenia. There are no known inheritance and transfer taxes in AM. There are real property taxes. There are not many widely used R&D initiatives that provide tax relief.

The above is not tax or legal advice for your individual facts and circumstances. We are able to point you an expert in Armenia who will advise you. Click incorporate now if you are in a hurry, or press the free consultation button above.

Country details

Armenia
AMD
Yerevan
Asia
hy
2,968,000

Tax treaties

Country Type Date Signed
Kazakhstan DTC  2006-11-06
Estonia DTC  2001-04-14
Ireland DTC  2011-07-14
Japan DTC  1986-01-18
India DTC  2003-10-31
Indonesia DTC  2005-10-12
Finland DTC  2006-10-16
Denmark DTC  1986-10-21
Hungary DTC  2009-11-09
Slovenia DTC  2010-10-11
Czech Republic DTC  2008-07-06
Canada DTC  2004-06-29
Latvia DTC  2000-03-15
Greece DTC  1999-12-05
United Kingdom DTC  2011-07-13
Cyprus DTC  2011-01-17
Russian Federation DTC  1996-12-28
Croatia DTC  2009-05-22
Austria DTC  2002-02-27
Germany DTC  1981-11-24
Luxembourg DTC  2009-06-23
France DTC  1997-12-09
Lebanon DTC  1998-09-16
Ukraine DTC  1996-05-14
Netherlands DTC  2001-10-31
China DTC  1996-05-05
Poland DTC  1999-07-14
Qatar DTC  2002-04-22
Spain DTC  2010-12-16
Georgia DTC  1997-11-18
Argentina TIEA 2014-07-07
United Arab Emirates DTC  2002-04-22
Switzerland DTC  2006-06-12
Italy DTC  2002-06-14
Lithuania DTC  2000-03-13
Romania DTC  1996-03-25
Belgium DTC  2001-06-07

Tax treaties Map

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Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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