The Armenian Government has reportedly approved the introduction of an employee tax incentive for the IT sector. The incentive provides a 50% individual income tax deduction for each employee of new and existing IT sector businesses, subject to the following conditions:
- At least 90% of income is derived from IT activities or, if no income has been received, at least 90% of the employees are IT specialists;
- At least 50 new jobs have been created since 1 March 2022 under employment agreements and civil law contracts; and
- Newly hired employees have not been employed under employment agreements or civil law contracts in the 6-month period preceding 1 March 2022.
In addition to the above conditions, the outstanding tax liability of the IT sector business, if any, must not exceed AMD 100,000 as on the day prior to submitting the application for the incentive.