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The document ceased to be valid since  January 1, 2018 according to article 445 of the Tax Code of the Republic of Armenia of  November 1, 2016 No. ZR-165, except for:

- the provisions relating to the residents accredited according to the procedure, established by penultimate paragraphs of articles 8 and 11 of the Law of the Republic of Armenia "About the state support of the sphere of information technologies" which are effective for a period of 5 years from the date of issue of the certificate


of October 27, 1997 No. ZR-155

About the income tax

(as amended on 15-12-2015)

Accepted by National Assembly of the Republic of Armenia on September 30, 1997

Section 1. General procedure for the taxation

Chapter 1. General provisions

Article 1. Subject of regulation of the Law

This Law governs the relations connected with determination and the tax discharge on profit in the Republic of Armenia, determines circle of income tax payers in the Republic of Armenia, rates, procedure for calculation and tax discharge on profit.

Article 2. Concept of the income tax

The income tax is the direct tax paid by taxpayers to the government budget according to the procedure and the size, established by this Law.

Article 3. General basis of calculation of the income tax

1. In case of determination of the income tax calculation is performed on the basis of the principles and rules established by the laws and other legal acts regulating financial accounting and the financial reporting if this Law does not provide features of their application.

2. During the term of representation of calculation for the income tax income tax payers in writing inform body of tax authorities on the principles and accounting rules elected by them and the financial reporting,  on the used computer program for financial accounting, and also on changes in them if by the law or other legal acts the taxpayer is granted the right of such choice.

3. In case of determination of leviable profit assets and liabilities are considered on original cost (acquisition), except for results of the reestimation performed in the procedure established by the law. In sense of application of this Law performed by results in the procedure for reestimation established by the Law results of reestimation of assets and (or) obligations are considered if reestimation was performed according to that law in which it is directly specified that reestimation of assets and (or) obligations is performed for the purpose of calculation of leviable profit or the income tax.

4. In case of determination of leviable profit the income and deductions resulting from formation of the reserves (reserve funds) established only by this Law are considered.

Chapter II. Taxpayers and taxation object

Article 4. Income tax payers

1. The income tax in the Republic of Armenia is paid (are taxpayers) residents of the Republic of Armenia (further - residents) and nonresidents, except for the public managerial institutions of the Republic of Armenia, the compensation fund created on the basis of the Law of the Republic of Armenia "About compensation of damage caused to life or health the serviceman during defense of the Republic of Armenia", local government bodies of the Republic of Armenia, the state non-profit organizations regarding the budgetary appropriations and the income transferred completely into the budget and the Central bank of the Republic of Armenia.

2. In the context of this Law:

a) the organizations, contractual investment funds, except for the pension funds, separate divisions of the organizations specified in the subitem "b" of this Item are considered as residents created in the Republic of Armenia (the rules which received state registration, registered, registered);

b) the organizations created in foreign states, and also the international organizations and the organizations created by them outside the Republic of Armenia are considered as nonresidents.

3. In all the relations provided by this Law connected with investment fund as with the taxpayer instead of it the managing director of this investment fund, at the expense of this fund acts.

Article 5. Taxation object

1. The taxation object for residents the leviable profit got in the territory of the Republic of Armenia and beyond its limits is considered.

2. The taxation object for nonresidents the leviable profit got from the Armenian sources (article 53 of this Law) is considered.

Article 6. Leviable profit

The leviable profit is positive difference between the gross income of the taxpayer and deductions established by this Law, and for investment funds – its net assets. For determination of leviable profit the procedure of payments of net assets of investment fund establishes the Central bank of the Republic of Armenia, having approved with the authorized Government of the Republic of Armenia body in the financial sphere. At the same time, in sense of this Law, from net assets of investment fund the amounts distributed by the participant made in the form of dividends from assets of investment fund or in other form do not decrease.

Chapter III. Gross income

Article 7. Gross income

1. The gross income is total amount of all income of the taxpayer in reporting year, irrespective of sources of their obtaining.

2. In the context of this Law:

a) inflow, growth of assets or reduction of obligations is considered the income that attracts increase in equity of the taxpayer;

b) equity the difference between assets and liabilities is considered;

c) asset any means belonging to the taxpayer on the property right - property (tangible assets), property rights and the personal non-property rights (intangible assets) connected with property rights, foreign currency, securities, accounts receivable and other property is considered;

d) the debt which is available for the taxpayer is considered the obligation (the credit, accounts payable, the tax liability and other).

Are among the income, in particular:

a) proceeds from sales of goods, products (further also - goods);

b) proceeds from sales of services;

c) proceeds from sales of fixed assets and other assets;

d) the percent and other compensation (further - percent) received according to loans;

e) the payments and other compensation (further - lease payments) received from lease;

e) compensation acquired for use or right to use by any copyright of the literary work, arts or scientific work, any patent, the trademark, the project or model, the plan, confidential formula or process, the program for electronic computers and the database or for use or right to use by the industrial, commercial, scientific equipment, or provision of information on industrial, technical, organizational, commercial, scientific experience (further - royalty);

g) dividends;

h) insurance indemnities;

i) income from financing of debts or commercial transactions, from implementation of other factoring transactions;

j) income from futures, options and other similar transactions;

k) gratuitously the received assets, the income from discount or forgiveness of obligations, except for the amounts on the tax benefits, other obligatory payments and payments paid to the government and communal budgets, the amounts on privileges in payments on environmental management provided by the law;

l) the income from compensation for the caused damage (the suffered losses);

m) the income in type of penalty fee, the penalties and other property sanctions except for enlisted in advantage of the taxpayer of penalty fee for each day of detention after the 90-dnevny term established by the law for return of overpayments and (or) amounts, various from the overpayments, relating to types of tax enlisted in the government budget according to article 33 of the Law of the Republic of Armenia "About taxes" (except for enlisted in the government budget of the property tax and land tax);

o) the income from the transactions recognized as invalid;

o) repayment sums earlier written off in the procedure for hopeless accounts receivable established by the Government of the Republic of Armenia or in case of repayment of not written off accounts receivable – the amounts of the deductions made in reserve in accordance with the established procedure, and in case of banks, credit institutions, insurance companies and specialized persons in the sphere of securities, added as a result of recovery in balance of the bad assets which are earlier written off in established jointly by the authorized Central bank of the Republic of Armenia body and the Central bank of the Republic of Armenia from balance and investment securities, and in case of the assets which are written off from balance – imputed incomes in reduction of the reserves created in accordance with the established procedure;

p) repayment sum according to the procedure, established by the authorized Government of the Republic of Armenia body, and in case of banks - jointly the body authorized by the Government of the Republic of Armenia and the Central bank of the Republic of Armenia, the accounts receivable which are earlier written off from balance, and in case of repayment of not cancelled debt - the amount of the assignments made in accordance with the established procedure;

c) ceased to be valid;

r) income gained through provision of bank guarantees, accepting transactions;

s) the income from trust (trust) or other management of securities and deposits of other persons, for rendering broker services and services of the financial agent (representative);

t) income from release, discount, transfer, concession or servicing of bills of exchange, checks, other payment securities, payment documents, cards and other tools;

x) the income which was considered as regards technical reserves of insurance companies, share of the reinsurer in technical reserves;

v) the commission payments received by insurance companies from the transferred agreements on reinsurance;

w) Ceased to be valid

x) surplus of the fixed assets revealed in case of inventory count (including, check) inventory items, money at other property, and in case of recognition of the rights of the taxpayer in the procedure established by the legislation (except for, based on court orders) over property, acknowledged ownerless, property in abeyance. Surplus of property, property in abeyance are estimated on the similar value which is available for this resident, and in the absence of this value, at the cost determined by means of examination which forms initial cost (acquisition value) of this property and completely joins in gross income for this period (in case of surplus of property – during detection, and in case of ownerless property – recognition of the rights);

y) the means united for the purpose of joint activities" (at the receiver) if the announcement of capture on itself obligations by calculation and tax payment in joint activities was not provided to tax authority in the stipulated in Clause 6.1 Laws of the Republic of Armenia "About taxes" procedure.

3. In the context of this Law the current of term of limitation period of receivables and payables poste restante begins from the date of submission of demand, but no later than the 61st day from the date of transaction.

4. Due to the application of the rates approved by the state or authorized body in accordance with the established procedure in case of the subsidies provided from the government budget, the income of the taxpayer is determined as a result of application of the specified rates, in the amount of the total amount of subjects to obtaining from buyers (consumers) of the amounts (sales proceeds) and the subsidies (sales proceeds) which are actually received from the government budget.


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