Apr 01, 2023
IT certificate in Armenia - tax benefits for IT
Armenia offered especially attractive conditions to the organizations working in the sphere of information technologies. Let’s find out what benefits are offered to IT-companies and how to use them.
What bonuses are given to IT companies?
In 2014 Armenia adopted a law “On State Assistance in the Sphere of Information Technology”. According to this law, IT organizations are issued an IT certificate, which provides significant tax benefits:
🟣 Zero VAT rate (instead of 20%).
🟣 Zero income tax rate (instead of 18%);
🟣 Income tax rate: 10% on employee wages (instead of 21%) and 5% on dividends (instead of 21%).
⚠️ Only those organizations that are registered on the territory of Armenia are covered by the law. In addition, the preferential taxation applies only to foreign income.
What IT-companies can apply for the IT-certificate?
To qualify for this document, a company must operate within one of the six approved areas:
😇 Engage in software development.
😇 Implement educational, research programs in IT.
😇 Perform computer systems management activities.
😇 Conduct consulting activities in the field of computer technology.
😇 Perform activities related to web portals.
😇 Process data, post information online, and conduct other related activities.
How to get an IT certificate?
1) Register a company in Armenia.
2) Open an account for a legal entity in Armenian banks.
3) To develop a business plan of the project.
4) To apply.
5) To present the project in person to the representatives of Ministry of Economy.
6) If the decision is positive, the IT certificate starts working the same month.