Tax changes in Armenia in 2026: turnover tax, personal tax declaration, VAT, cryptoassets

The Code was amended several times in 2025 and 2026. The key points: from January 1, 2025, new turnover tax rates and an expense deduction apply. From October 30, 2025, RA citizens receive a pre-filled annual declaration. From July 1, 2026, VAT on gold goods is calculated by a new procedure and technical law HO-234-N enters into force. This list is not exhaustive: we have reviewed laws whose texts are published on arlis.am.

Summary

Turnover tax and micro-business

Law HO-285-N was adopted on 12.06.2024 and entered into force on January 1, 2025. It replaced article 258 of the Tax Code and introduced expense deduction. Rates in the current version (art. 258):

A taxpayer declaring catering calculates tax only at two rates: 12% for catering and 20% for other income outside the "food services" section of the classifier (art. 258 sec. 1 pt. 7 and sec. 8). The 1% rate for high-tech is effective from January 1, 2025 to December 31, 2031, set by amendment HO-500-N of 04.12.2024.

Expense deduction

For trade, production, catering and other activities, tax at the applicable rate is reduced by a percentage of confirmed expenses. The result cannot be below a minimum:

Law HO-72-N of 26.03.2025 clarified what counts as an expense. These are expenses for the period confirmed by documents, related to production, work and services, original cost of goods for resale, and administrative or distribution costs. The rule applies from 1 January 2025 (art. 9 sec. 4). Not included: fixed assets and intangible assets, their depreciation, assets received free of charge, travel and representation expenses. Unused deductions transfer to next periods (art. 258 sec. 7). Separate accounting by activity is needed; if separate administrative and distribution costs can't be calculated, they are allocated proportionally to income shares (art. 260 sec. 3).

Example for services. Turnover: 10 million drams, expenses: 6 million drams. Tax at 10% rate: 1,000,000 drams. Deduction: 6% of 6 million drams = 360,000 drams. Due tax: 640,000 drams. This is above the 4.5% minimum (450,000 drams).

Sole proprietors’ profit tax and regime transitions

• A sole proprietor on turnover tax pays profit tax of 5,000 drams per month. For these activities this is their final profit tax obligation (art. 125 sec. 3).
• When moving from turnover tax to the general regime, unused deductions reduce gross income by coefficients: trade 10, production 20, catering 10, other activity 15 (art. 264 sec. 4).
• When moving from general to special regimes, previously credited VAT on existing assets is recalculated at 20% (art. 73 sec. 14).

Who cannot use the regimes

Excluded from turnover tax are, among others, banks, insurance companies, notaries, audit organizations and suppliers of legal services (art. 254 sec. 3 pt. 3). From July 1, 2025 (HO-72-N), the exclusions add "legal and accounting activities" (code 69), "head office and management consulting activities" (code 70) and staff supply activities (codes 78.2 and 78.3). Micro-business is closed for, among others, trade, consulting, legal, accounting, medical services, software development, construction, and catering in Yerevan except hospitality in tourist homes (art. 267 sec. 5). See the full list in the Code article. More: sole proprietors’ tax regimes, turnover limits.

Personal income declaration

Period. Law HO-76-N of 22.04.2025 (in effect from 29.04.2025) replaced the previous "by May 1" deadline with the period March 2 to July 1 of the year after the reporting year (art. 156 sec. 4 and 4.1).

Pre-filling. Law HO-324-N of 24.10.2025 (in effect from 30.10.2025) introduced art. 156.1:

• Who: RA tax residents who are citizens of the RA as of December 31 of the reporting year, except minors (art. 156 sec. 4.1).
• Tax authority: pre-fills the declaration based on its data, you may amend and file it (art. 156.1 sec. 1-3).
• If not filed: the pre-filled declaration is considered filed (art. 156.1 sec. 4).
• If March 2 is a non-working day, the period starts on the next working day (art. 5 of the law).
• Not declared: non-taxable income from close family — spouse, parents, siblings, children, grandparents and grandchildren.
• Refunds: social expense refund (art. 158 sec. 3) is issued only if the declaration is filed and signed by digital signature.
• Transition: for 2025, the pre-filled declaration was available from March 2, 2026, and could be amended and filed until November 1, 2026 inclusive (art. 10 sec. 3). November 1, 2026 is a Sunday.
• ID card: if you applied for an RA ID card before the deadline but did not receive the card by that date, the PIT payment deadline for late penalty purposes is extended to the 25th of the month following the card printing date (art. 53 sec. 6). An application also includes booking an appointment through the digital platform or migration service app and submitting the application on the designated day.

Residency certificate. Law HO-377-N of 13.11.2025 replaced art. 314: RA residency certificate is issued electronically: to sole proprietors and companies immediately upon application, to individuals within 2 working days. Applies to certificates issued after 01.12.2025. Procedure described in double taxation.

VAT

Gold goods (HO-200-N, from 01.07.2026)

Law HO-200-N adopted 06.05.2026, published 21.05.2026.

• Producer of gold goods, including those with gemstones. VAT base is the positive difference between the base under art. 61 and the documented purchase price of the gold and stones used in the good. The base cannot be less than 10% of the standard base (art. 62 sec. 22 pt. 1).
• Trader in such goods. Base is the positive difference between the standard base and the purchase price of the good (incl. VAT). For items bought before the law came into force, VAT is excluded from the cost (art. 3 sec. 2 of the law). Input VAT on such deals cannot be credited, except for 0% VAT transactions (art. 72 sec. 1 pt. 13).
• Free-of-charge transactions and those at a price 20% or more below market (excluding VAT). 80% of market value is taken as the base instead of the usual, minus the purchase price. The same rule in art. 62 sec. 21 applies to trade-in resale of cars.

Passenger cars (HO-243-N)

Law HO-243-N of 02.07.2025 prohibits VAT credit on passenger cars purchased or imported after August 1, 2025 not for resale, or on those leased after this date. Exception: the car is used for rental. A car counts as not bought for resale if ownership is registered to the buyer. On subsequent sale, previously uncredited VAT is included in calculations: 16.67% of the car's book value is added if the sale is VAT-taxable (art. 73 sec. 8.2).

Law HO-234-N

Law HO-234-N signed 02.06.2026, effective July 1, 2026. Some norms in force from January 1, 2027. Key points:

• Exchange rate. For conversions use the CBA's average exchange rate published the previous working day. For FX transactions, use the rate of the same day (art. 16 as amended).
• VAT payer registration. If for tax years before January 1, 2026, you were required to become a VAT payer (e.g. ceased to be on turnover tax or micro-business) but didn’t register, you may apply to the tax authority until December 21, 2026 to be permitted to register. If registration is completed by December 31, 2026, you are registered as a VAT payer. The provision applies for transactions from January 1, 2022, and VAT obligations due to unregistered status are recalculated (art. 33 sec. 5 of the law).

Electronic trade in goods (HO-83-N, from 01.01.2027)

Law HO-83-N adopted 04.03.2026 and effective January 1, 2027. When selling goods via an electronic marketplace to private individuals (not sole proprietors) in Armenia, VAT is calculated and paid by the marketplace operator from an EAEU country, regardless of VAT threshold; if the EAEU supplier without permanent establishment in Armenia manages the marketplace, that supplier pays the tax (art. 70 sec. 3). Operator files VAT returns by the 20th of the month following the reporting period (art. 75 sec. 3.1). Export of goods from Armenia to EAEU countries to individuals via such a marketplace is subject to 0% VAT (art. 65 sec. 2 pt. 14).

Cryptoassets

Law HO-175-N of 29.05.2025 (in effect from 04.07.2025) introduced cryptoasset provisions into the Code:

Service providers with cryptoassets under the cryptoassets law may not use turnover tax or micro-business regimes (art. 254 sec. 3 pt. 3, art. 267 sec. 5 pt. 1).

Audits

Law HO-207-N adopted 06.05.2026 and effective 08.06.2026. The second or third thematic audit in a tax year can be held only upon order of the head of the tax authority (art. 349.1 sec. 3.1).

What’s not included

Laws adopted on 03.07.2026 (HO-295-N, HO-309-N, HO-310-N, HO-323-N, HO-344-N, HO-383-N, HO-385-N, HO-407-N) and HO-440-N of 27.08.2026 are not reviewed. Most norms from 03.07.2026 take effect from 1 January or 1 February 2027, part of HO-309-N from September 1, 2026. HO-7-N of 20.01.2026, HO-60-N and HO-61-N of 04.03.2026 are not included. Check the latest Code on arlis.am.