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5.1. Tax Base for Resident Entities

Resident companies are taxed on their worldwide income received from sources in and outside Armenia. Agricultural income is exempt from CIT.

Expenses incurred in the production of taxable income are deductible provided they are justified and supported by documentary evidence. The deduction of certain expenses is however limited or disallowed (see Sec. 6.5.).

Dividends received from a resident company are exempt from taxation. From January 2017, for non-resident shareholders, dividends will be deemed as income on the day of the decision made by the shareholders to distribute dividends from the profit, but no later than 30 June of the tax year following the reporting year. Capital gains are taxed as ordinary income.