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10. INCENTIVES AND SPECIAL REGIMES

Armenia provides several tax incentives to entities engaged in specified activities.

  • A group of companies exclusively engaged in exports of goods and services (other than those engaged in the sale of mineral and excisable products or jewellery, precious metals and precious stones) with an annual group turnover of not less than AMD 50 billion are assessed to corporate tax at the reduced rate of 2%, subject to certain conditions.The availability of this incentive has been extended from 31 December 2021 to 31 December 2029;
  • For other group of companies whose total annual export turnover is not less than AMD 40 billion (other than those engaged in the sale of mineral and excisable products or jewellery, precious metals and precious stones), the corporate tax rate is 5%, subject to certain conditions. The availability of this incentive has been extended from 31 December 2021 to 31 December 2029;
  • The corporate tax rate is reduced to 5% for resident companies implementing special construction projects exclusively outside Armenia and approved by the government;
  • Companies engaged in agricultural production are exempt from corporate tax until 31 December 2024;
  • Taxpayers operating in free economic zones as start-ups are exempt from corporate tax in respect of the income derived from activities performed therein;
  • Companies producing hand-made carpets are exempt from corporate tax in respect of the income from the sale of such carpets;
  • Resident start-ups in the information technology (IT) sector (with employees not exceeding 30 people)  are exempt from corporate tax until 31 December 2022 with respect to income generated from the sale of IT products. Assistance towards obtaining favourable funding and bank credits is also available from the government;
  • In case of Armenian resident companies implementing a business plan approved by the government, a tax credit is granted equal to the amount of annual salaries for the new jobs created within the business plan. The tax credit offsets the corporate tax liability of the year, but is capped at 30% of the actual tax liability. The tax credit is available for 5 fiscal years, in addition to the year of launch of the business plan.