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Sole trader and small business tax calculator for Armenia, 2026
Enter average monthly turnover and documented expenses and the calculator compares the regimes for your activity under the Tax Code as in force from 1 September 2026. Since 2025 turnover tax has roughly doubled, but part of documented expenses now reduces the tax.
Data as of 23.10.2026.
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Worked example
Taxes per month
| Turnover tax tax 170,000, profit tax 5,000, social payment 5,000 | 180,000 AMD |
| Micro-entrepreneurship no state taxes; check that your service is not on the exclusion list | 0 AMD |
| General regime, sole trader profit tax 23% 345,000, social payment 87,500; VAT not included | 432,500 AMD |
The result is for reference. Where accuracy to the dram matters, check the sources below.
Turnover tax in 2026
| Income type | Rate | Expense deduction | Minimum of turnover |
|---|---|---|---|
| Trade | 10% | 9.5% | 1% |
| Manufacturing | 7% | 5% | 3% |
| Catering | 12% | 9% | 3.5% |
| Services and other activity | 10% | 6% | 4.5% |
| Rent, interest, royalties | 10% | none | - |
| High tech on the Government list (until 2031) | 1% | - | - |
Quarterly tax = rate × turnover − deduction % × documented expenses, but not less than the minimum share of turnover. Fixed assets, depreciation, travel and entertainment do not count as expenses; unused deductions carry over to later quarters. The regime is open if last year’s turnover was up to 115M drams; since 1 July 2025 it is closed to legal and accounting services, management consulting and staffing. On top, a sole trader pays 5,000 drams a month profit tax and, if born in 1974 or later, a 5,000 social payment. Reporting and payment are quarterly, by the 20th of the following month.
Micro-entrepreneurship
Last year’s turnover up to 24M drams and no state taxes on that activity, no social payment either. Import taxes, excise and income tax on employees’ salaries (20%) remain. Not eligible: any trade, real estate rental and sales intermediaries, rent recipients, consulting, lawyers, accountants, software development, design, marketing, translation, medicine, beauty salons, car service, construction, catering in Yerevan. The turnover report is annual, by 1 February.
General regime and VAT
A sole trader on the general regime pays 23% profit tax (companies 18%). The social payment on annual income: up to 6M drams 5%, above 10% minus 300,000. 20% VAT is mandatory for those who cannot use turnover tax, i.e. with turnover above 115M; the calculator does not compute it as it depends on input VAT from suppliers.
Renting out an apartment as an individual
Without registering as a sole trader the tax on rent is 10%, plus another 10% on the amount above 60M a year. If the tenant is a company or a sole trader, the tenant withholds the tax and pays it by the 20th of the next month. If the tenant is an individual, the owner files an annual return between 2 March and 1 July and pays by 1 July. Example: an apartment at 400,000 a month, tax 40,000 a month or 480,000 a year.
What changes in 2027
Already adopted: from 1 January 2027 e-commerce marketplace operators leave turnover tax, from 1 February 2027 companies holding bank shares, and from 1 June 2027 micro closes for realtors and property managers. Raising the micro threshold is discussed but there is no law yet.
FAQ
How much does a sole trader pay on turnover tax in 2026?
For services, 10% of turnover minus 6% of documented expenses, but not less than 4.5% of turnover, plus 5,000 profit tax and a 5,000 social payment a month. With 2M drams monthly turnover and no expenses that is 210,000 AMD a month.
Can I rent out an apartment as a micro-entrepreneur?
No. Rent recipients, as well as real estate rental and sales intermediaries, cannot be micro-entrepreneurs.
What is the tax on renting out an apartment in Armenia?
10% of the rent for an individual; another 10% on the amount above 60M drams a year. If the tenant is a company, it withholds the tax.
What are the turnover thresholds?
Turnover tax applies with last year’s turnover up to 115M drams, micro up to 24M. Exceeding it during the year ends the regime from that moment.
Sources
- Налоговый кодекс РА, редакция с 01.09.2026, ст. 125, 150, 254–262, 267–270 (arlis.am) (checked 23.10.2026)
- Закон ՀՕ-285-Ն о ставках налога с оборота с 2025 года (arlis.am) (checked 23.10.2026)
- Закон ՀՕ-72-Ն об исключениях с 01.07.2025 (arlis.am) (checked 23.10.2026)
- Закон ՀՕ-391-Ն о риелторах с 01.06.2027 (arlis.am) (checked 23.10.2026)
- Закон «О накопительных пенсиях», редакция с 18.05.2026 (arlis.am) (checked 23.10.2026)
- Комитет госдоходов: разъяснение ставок налога с оборота, 17.04.2025 (src.am) (checked 23.10.2026)
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