What taxes need to be paid in Armenia by individual entrepreneurs and individuals in 2023?
- Категории
Table of contents:
Article edited Move2Armenia Business. Move2Armenia Business — consulting for individuals and legal entities in Armenia
What taxes are there in Armenia?
There are two levels of taxes in Armenia: state and local
The state ones include:
- income tax,
- income tax (corporate tax),
- sales tax,
- value added tax,
- excise tax,
- road tax
- patent tax
Locals include:
- real estate tax
- vehicle tax
Taxes of Armenia by analogy with taxes of Russia
| Rate in RA | RA tax | Tax in Russia | Rate in Russia |
|---|---|---|---|
| 15-30 % depending on income (progressive) | Income tax | Personal Income Tax (PIT) | 13% for residents, 30% for non-residents |
| 20% | Income tax (corporate tax) | Corporate income tax on OSN | 20% |
| 5% | Sales tax | Income tax under the simplified tax system | 6% or 15 % |
| 20% | VAT | VAT | 20% |
What does the tax regime depend on?
We previously wrote about tax residence of the Russian Federation and the Republic of Armenia. The status of a resident of the Republic of Armenia affects the formation of a tax on a particular type of income.
According to the Agreement between the Russian Federation and the Republic of Armenia, the tax authorities of the countries have established that the same tax is levied in the budget of one of the states according to certain criteria. It concerns income tax, real estate tax. But taxes under the special tax regime (STS in the Russian Federation and turnover tax in the RA) are not counted.
The situation is excluded when you pay income tax to the budget of both Russia and Armenia.
So, if you are a resident of the Republic of Armenia, you pay tax on income in the territory of Armenia and abroad.
If you are a non-resident of the Republic of Armenia, the obligation to pay tax applies to income received only from sources in Armenia.
According to Armenian legislation, tax rates are the same for both residents and non-residents, but non-residents do not pay social contributions and stamp duty.
It is important to understand: tax resident which country you will be at the end of the calendar year and, accordingly, at what rate you will have to pay taxes in each of the countries where you have income.
Sanctions for non-payment of taxes in Armenia
The RA legislation introduces sanctions for non-payment of taxes:
- penalties in the amount of 0.1 - 0.3 % for each day of delay from the amount of unpaid tax;
- a penalty of 5% of the amount of non-payment for every 15 days of delay;
- a penalty of 50% of the amount of tax if you hide the source of income or property;
- criminal responsibility.
The article was created on the basis of the material ponaehali.am