Armenia taxes residents on worldwide income and non-residents on Armenia-source income only. Armenia has no Controlled Foreign Company regime. Armenia operates a self-assessment system, with the State Revenue Committee conducting post-filing review.
The Armenian tax year is the calendar year. The individual filing deadline is 20 April of the following year.
Armenia's headline corporate income tax (CIT) rate is 18%.
The headline personal income tax (PIT) rate is 20%.
The standard VAT/GST (or equivalent consumption tax) rate is 20%.
An individual is Armenian tax resident if present in Armenia for more than 183 days in the tax year, or if their center of vital interests is in Armenia. An entity is resident if incorporated and located in Armenia. Resident individuals and entities are taxed on worldwide income; non-residents (and non-resident entities without an Armenian permanent establishment) are taxed only on Armenia-source income. The standard corporate income tax rate is 18%.
A non-Armenian entity has an Armenia permanent establishment through a fixed place of business or a dependent agent habitually concluding contracts in Armenia on the entity's behalf, following the OECD Model Treaty definition as applied under Armenian domestic law and any applicable tax treaty.
Armenia has no Controlled Foreign Company regime.
Armenia does not use a debt-to-equity ratio test. Instead interest on loans and credits (including amounts under finance lease contracts) is non-deductible to the extent it exceeds twice the settlement (reference) rate set by the Central Bank of Armenia on 31 December of the tax year - a rate-based cap. Separately, if a company's equity (assets minus liabilities, for tax purposes) is negative on the last day of the fiscal year, interest on loans from non-bank, non-credit organizations becomes entirely non-deductible, with carve-outs for loans from listed international development institutions and for interest on publicly offered debt securities.
Armenia does not use an elective check-the-box classification system; entity classification generally follows the entity's actual legal characteristics. Armenia does not have a comprehensive ATAD2-style anti-hybrid regime.
No foreign bank account or foreign financial asset reporting regime exists requiring residents to separately disclose foreign accounts; foreign income is reported through the standard annual tax return.
Armenia does not provide a broad participation exemption for foreign dividends; relief from double taxation is available primarily through Armenia's foreign tax credit system.
Armenia has a real foreign tax credit regime available to both individuals and companies for foreign tax paid on foreign-source income also taxed in Armenia, capped at the Armenian tax otherwise due on that income.
Per GSL's named-partner compilation, Armenia has 51 double tax treaties in force, covering most of Europe, China, India, Canada, and the UAE, among others. Armenia's relationship with the United States is unresolved rather than a clean treaty: the US treats the 1973 US-USSR tax treaty as still applying to Armenia, but Armenia does not officially recognize this position, so in practice taxpayers cannot rely on treaty benefits between the two countries and should use the US Foreign Tax Credit instead.