Armenia Business Tax 2026: Turnover Tax, Micro Business, IT 1%, VAT

By WSE.AM editorial team, edited by Mark Muzyka · Updated 23 October 2026

Armenia tax for individual entrepreneurs in 2026: turnover tax rates, 1% for listed IT activities, the 24 million AMD micro limit, VAT 20% and profit tax 18%.

An individual entrepreneur in Armenia has three tax regimes: the general regime with VAT at 20%, turnover tax for those whose previous year turnover did not exceed 115 million AMD, and the micro business regime for turnover up to 24 million AMD, which is exempt from most state taxes. A special regime must be chosen by application within 20 days of registration, otherwise the general regime applies. Software development, consulting, design, marketing, translation, intermediaries and landlords cannot use the micro regime, but high technology activities on the government list pay turnover tax at 1%.

Up to date as of 23 October 2026. This is not legal advice: laws change, check the source or a lawyer before acting.

The three regimes at a glance

Regime	Previous year turnover limit	What you pay	Restrictions
General	None	VAT 20% and taxes under the general rules	Applies by default
Turnover tax	Up to 115 million AMD	A rate on turnover by type of activity	VAT applies if you cross the limit during the year
Micro business	Up to 24 million AMD	Exempt from most state taxes	Closed to a number of activities

Both special regimes are available to a resident commercial organisation or an individual entrepreneur (Tax Code Articles 254 and 267).

Armenia turnover tax rates in 2026

Rates below come from the current text of Tax Code Article 258. The reporting period for turnover tax is a quarter (Article 259).

Activity	Rate	Reduction
Trade	10%	Minus 9.5% of documented expenses, but not below 1% of the base
Manufacturing	7%	Not below 3%
Rent, interest, royalties	10%	None
Public catering	12%	Not below 3.5%
High technology (IT) activities on the government list	1%	Valid until 31 December 2031
Sale of other assets, including real estate	10%	None
Other activities	10%	Minus 6% of expenses, but not below 4.5%

Watch out for old figures. Articles by law firms and media still present 5% and 1.5% as general turnover tax rates. That is outdated: in the current Article 258 these rates remain only for two narrow activities (5% for trading recyclable materials on the government list and 1.5% for newspaper sales by publishers). Use the table above for everything else.

Armenia IT company tax: what a developer actually pays

This is the question most relocating IT specialists and freelancers ask, and the answer has two parts:

The micro business regime is not available to you. Tax Code Article 267(5) excludes software development and information processing or transmission, as well as consulting, design, marketing and translation.
Turnover tax at 1% applies to high technology activities on the government list, and that rate is valid until 31 December 2031. If your activity is not on the list, the "other activities" rate applies instead.

The government list itself is not reproduced in our dataset, so check that your activity code is on it with the State Revenue Committee before you rely on the 1% rate.

If you work through a company rather than as an individual entrepreneur, the general corporate profit tax rate is 18% (Tax Code Article 125). Turnover tax and the micro regime are also open to resident commercial organisations within the same limits. Company setup is covered in our guide to an LLC in Armenia for foreigners.

Tax	Rate	Source
Corporate profit tax	18%	Tax Code Art. 125
VAT, standard rate	20%	Tax Code Art. 63
Personal income tax, general rate	20% (from 1 January 2023)	Tax Code Art. 150
Turnover tax, listed IT activities	1% until 31 December 2031	Tax Code Art. 258

Armenia micro business tax: who qualifies

The regime is available if previous year turnover did not exceed 24 million AMD (Tax Code Article 267(3)). A micro business is exempt from all state taxes on that activity except:

taxes on imports;
income tax for hired employees;
excise, environmental and road taxes.

The following, in particular, cannot be a micro business (Article 267(5)):

providers of consulting, legal, accounting, engineering, advertising, design, marketing and translation services;
intermediaries, including real estate agents;
software developers and those who process or transmit information;
businesses engaged in trading (buying and selling goods), banks, credit organisations and pawnshops;
anyone receiving rent under a current lease (Article 267(5) point 11).

On the limit: the current Tax Code says 24 million AMD. The government announced plans in 2026 to raise it, but that change is not in the code in force. Until the law changes, work with 24 million AMD.

The 115 million AMD limit and VAT

If you are on turnover tax and your turnover passes 115 million AMD during the year, you become a VAT payer on the amount above the limit and must file an application within 20 days (Tax Code Article 59). The standard VAT rate is 20% (Article 63).

How to choose a regime on time

1. Register as an individual entrepreneur or an LLC (see how a foreigner registers a business in Armenia and an LLC for foreigners). 2. By the 20th day after registration, inclusive, file an application for turnover tax or micro business with the tax authority. 3. If you miss it, the general regime applies and you are a VAT payer.

Your personal tax status is a separate question from the business regime: see Armenia tax residency and the 183 day rule.

Renting out a flat

Rental income of an individual is taxed at 10%, and on rent above 60 million AMD a year a further 10% applies to the excess (Tax Code Article 150(7)). Under turnover tax the rate for rent is also 10%, and a landlord cannot be a micro business. Amendments affecting Article 150 take effect in 2027, so check the current wording before calculating 2027 tax. If you are looking for a flat rather than letting one, see apartments for rent in Yerevan.

Sources

Tax Code of the Republic of Armenia (arlis.am)
hartak.am: business registration steps

Frequently asked questions

What tax does an individual entrepreneur pay in Armenia in 2026? It depends on the regime: the general regime with VAT at 20%, turnover tax at the rate for your activity (from 1% for listed IT activities to 12% for catering), or the micro business regime with exemption from most state taxes. You choose by application within 20 days of registration.

What is the turnover tax rate for IT in Armenia? 1% for high technology activities on the government list, valid until 31 December 2031. If your activity is not on the list, the rate for other activities applies.

Can a software developer use the micro business regime? No. Tax Code Article 267(5) excludes software development and information processing, as well as consulting, design, marketing and translation. These activities are left with turnover tax or the general regime.

What is the corporate tax rate in Armenia? The profit tax rate for organisations is 18% (Tax Code Article 125). A resident company with turnover within the limits can instead choose turnover tax or the micro business regime.

What happens if turnover goes above 115 million AMD? On turnover tax, once you pass 115 million AMD during the year you become a VAT payer on the amount above the limit. The application is due within 20 days.

Has the micro business limit been raised? No. The Tax Code in force says 24 million AMD; the government has only announced an increase. Use the current text until the law is amended.

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