Methodology - Armenia (2026)

Educational model - not a State Revenue Committee assessment, not a tax return, not tax advice.

Employee

Personal income tax is a flat 20% on the gross salary minus the funded pension contribution (the funded pension is deductible before tax).
Mandatory funded pension: 5% of gross up to AMD 500,000/month; above that, 10% of min(gross, AMD 1,125,000) minus AMD 25,000, capped at AMD 87,500/month.
Mandatory Health Insurance (2026 phase one): a fixed AMD 4,800/month for gross AMD 200,001-500,000 and AMD 10,800/month above AMD 500,000 (0 at or below AMD 200,000; this band joins in 2027).
Military stamp payment: a fixed AMD 1,000/month for gross up to AMD 1,000,000 and AMD 15,000/month above (two-band table from 25 December 2025). Net = gross - funded pension - PIT - stamp - MHI.
Out of scope: employees born on or before 1 January 1974 (voluntary pension), non-residents, IT/high-tech wage subsidies, and whole-dram payroll rounding.

Micro-business regime (micro): 0% turnover/income tax for total annual turnover up to AMD 24,000,000 (eligibility lost above the cap).
Turnover-tax regime (turnover): for turnover up to AMD 115,000,000, the rate depends on the activity - trade 10% (with a 1% of turnover floor), production 7%, public catering 12%, other services 10%, high-tech/IT 1%.
General regime (general): 20% income (profit) tax on net profit (turnover minus deductible expenses).
In every regime the entrepreneur also pays the fixed stamp payment (AMD 12,000/year up to AMD 12,000,000 annual income, AMD 120,000/year above) and, when turnover exceeds AMD 2,400,000, the entrepreneur Mandatory Health Insurance of AMD 129,600/year.
Out of scope: VAT, the high-tech IT special regime beyond its 1% rate, family-business rules, and whole-dram rounding.