Armenia turnover tax in 2026: rates by activity and the cap

Armenia turnover tax is a percentage of what your business takes in, not of your profit, and in 2026 the percentage depends on the activity: 10%≈Estimate: Uses at least one rule that an accountant has not verified yet. for most services, 10%≈Estimate: Uses at least one rule that an accountant has not verified yet. for trade, 7%≈Estimate: Uses at least one rule that an accountant has not verified yet. for manufacturing, 12%≈Estimate: Uses at least one rule that an accountant has not verified yet. for public catering and 1%≈Estimate: Uses at least one rule that an accountant has not verified yet. for qualifying high-tech work. You can use it if your turnover across all activities in the previous year stayed at or below AMD 115,000,000≈Estimate: Uses at least one rule that an accountant has not verified yet., and you pay it every quarter. Fixed charges come on top, and they are the part most rate tables leave out.

Every figure on this page comes from our rule set for tax year 2026. An accountant has not signed it off yet, so the tax values carry an estimate mark, and where sources disagree we say so in the text.

Turnover tax rates by activity in 2026

The "other activities" line is where most freelancers land: translation, tutoring, writing, video, most online services. The rate applies to turnover, so a translator who bills a Berlin agency every month pays it on the full fee. Her laptop, her coworking desk and her rent do not come off first (there is a narrow exception for documented expenses, covered below).

The high-tech rate is narrower than the headline suggests. It covers activities the Government defines as high-tech, and our rule set says at least 90%≈Estimate: Uses at least one rule that an accountant has not verified yet. of your revenue has to come from them IT-01: IT rate: conditions. Sources agree, not verified. Sources disagree on whether you also need to be listed in the High-Tech Registry IT-02: IT rate: High-Tech Registry. Sources disagree. The IT freelancer page goes through those conditions. If your income mixes IT and other work and falls below the required share, how the rest is taxed is still an open question for our accountant.

Turnover tax alone is only part of what an IE pays. The calculator adds the fixed charges and sets the total beside microbusiness, the general system and employment, at your income.

What changed in 2025

Armenia reworked turnover tax in 2025. The trade rate doubled to 10%≈Estimate: Uses at least one rule that an accountant has not verified yet. TR-01: Turnover tax rate: trade. Sources agree, not verified, and one source says the list of excluded activities grew from July 1, 2025≈Estimate: Uses at least one rule that an accountant has not verified yet. (see the next section).

That is why search results contradict each other. Pages written before the change still rank, and many still quote a much lower rate for services, sometimes as a range. Russian-language relocation guides do this a lot, and so do plenty of English pages. If a page gives a services rate below 10%≈Estimate: Uses at least one rule that an accountant has not verified yet. and says nothing about high-tech conditions, check its date before you plan a budget around it.

Who is excluded from turnover tax

Some activities cannot use turnover tax at any turnover. Sources agree on these TT-02: Activities excluded from turnover tax. Sources agree, not verified:

• legal and accounting services (NACE M69);
• management consulting (M70);
• temporary staffing (N78.2 and N78.3);
• banks, credit and insurance organisations, investment firms, pawnshops, payment organisations, gambling, notaries and audit firms.

One source goes further and adds market research, advertising, engineering, architectural design and healthcare from July 1, 2025≈Estimate: Uses at least one rule that an accountant has not verified yet. TT-03: Disputed turnover tax exclusions. Sources disagree. We have not found a second source that confirms it, so we record it as conflicting rather than drop it or treat it as settled. If you work in one of those fields, get an accountant's answer before you elect turnover tax on the strength of any website, this one included. The calculator shows design and marketing as "unclear" for turnover tax for the same reason.

Note the M70 line too. A "marketing consultant" or "business consultant" title may put you in management consulting, and that is excluded whatever the outcome of the dispute above.

The turnover cap and what happens if you go over it

You can be on turnover tax if your turnover in the previous year, across all your activities, did not exceed AMD 115,000,000≈Estimate: Uses at least one rule that an accountant has not verified yet. TT-01: Turnover tax cap. Sources agree, not verified. Two details catch people. It is the previous year's figure, not the current one. And it counts everything the IE earned, not just the activity you think of as your main one. The high-tech rate sits under the same ceiling IT-03: IT rate: turnover cap. Sources agree, not verified.

If you stop qualifying, because you crossed the cap or for another reason such as a related-party link, you must submit a declaration to the State Revenue Committee within 20≈Estimate: Uses at least one rule that an accountant has not verified yet. days TT-05: Leaving turnover tax. Sources agree, not verified. That rule rests on a single detailed source that cites the Tax Code; we have not found it contradicted.

Above the cap you are on the general system, which taxes profit rather than turnover. Sources disagree on its rate for an IE, 23%≈Estimate: Uses at least one rule that an accountant has not verified yet. or 20%≈Estimate: Uses at least one rule that an accountant has not verified yet. GS-01: General system: tax on IE profit. Sources disagree, and our rule set records VAT registration as mandatory above AMD 115,000,000≈Estimate: Uses at least one rule that an accountant has not verified yet., at 20%≈Estimate: Uses at least one rule that an accountant has not verified yet. VAT-01: VAT registration threshold. Sources agree, not verified. From exactly which date the general system applies when you cross the cap in the middle of a year is not something our sources settle. Ask an accountant before the declaration falls due, not after.

If you are anywhere near the cap and bill in foreign currency, track your turnover in drams every month. A weaker dram moves you closer to the line without a single extra client.

Can expenses reduce turnover tax?

Sometimes, and this is the least settled part of the regime. One source gives a full table: documented expenses can bring the tax down, but only to a minimum rate that differs for trade, manufacturing and services, and the high-tech rate cannot be reduced at all. Another source describes the trade rule in a different way TT-04: Expenses under turnover tax. Sources disagree.

We do not quote the floors because the two sources do not match, and the calculator ignores deductions and shows the gross rate. If you have large documented costs, such as stock you resell, materials, or subcontractors who give you invoices, your real tax may be lower than the calculator shows, and an accountant can tell you by how much. For a freelancer whose main costs are a laptop and a desk, the effect is likely to be small.

How the quarterly turnover tax is filed and paid

Turnover tax is calculated and paid per quarter, by day 20≈Estimate: Uses at least one rule that an accountant has not verified yet. of the month after the quarter ends DL-04: Quarterly turnover tax. Sources agree, not verified:

The State Revenue Committee runs the filing. We have not checked the current form or the screens of its online system, so we do not walk you through them here: the SRC's own guidance or an accountant is the reliable source for that. What we can describe is what goes into the number. You take the quarter's turnover for each activity, convert it into drams, and apply each activity's rate.

The quarterly figure matters for more than tax if you hold residence on business grounds. From November 1, 2026, the amended Law on Foreigners says business-ground residence loses force if, within 180 days of the grant, the SRC database has no information on taxes calculated from your business activity. How that plays out for an IE with a thin first quarter has not been tested yet. The checklist for the new law covers it in more detail.

A quarterly example: a translator billing in euros

Take a translator living in Yerevan who bills one Berlin agency a steady monthly fee in euros. She registered as an IE in an earlier year, elected turnover tax in time, and her work falls under "other activities". Here is her first quarter.

1. She adds up her turnover for January, February and March: three monthly fees.
2. She converts each fee into drams. Which exchange rate and which date apply is one of the open questions below, so she keeps every invoice and bank statement.
3. She applies 10%≈Estimate: Uses at least one rule that an accountant has not verified yet. to the total and pays it by 20≈Estimate: Uses at least one rule that an accountant has not verified yet. April.
4. Each month of the quarter she also pays the fixed monthly IE payment, due by day 20≈Estimate: Uses at least one rule that an accountant has not verified yet. DL-05: Fixed monthly payment date. Sources disagree. Sources disagree on whether it is AMD 5,000≈Estimate: Uses at least one rule that an accountant has not verified yet. or AMD 10,000≈Estimate: Uses at least one rule that an accountant has not verified yet. a month FX-01: Fixed monthly payment. Sources disagree.

April is also when the yearly charges arrive. Mandatory health insurance of AMD 129,600≈Estimate: Uses at least one rule that an accountant has not verified yet. is due by April 20≈Estimate: Uses at least one rule that an accountant has not verified yet. if her previous year's turnover exceeded AMD 2,400,000≈Estimate: Uses at least one rule that an accountant has not verified yet. FX-04: Health insurance for IEs. Sources agree, not verified. Stamp duty is AMD 12,000≈Estimate: Uses at least one rule that an accountant has not verified yet. a year if her annual income stays at or below AMD 12,000,000≈Estimate: Uses at least one rule that an accountant has not verified yet. and AMD 120,000≈Estimate: Uses at least one rule that an accountant has not verified yet. above that FX-03: Stamp duty for IEs. Sources agree, not verified; it is reported to be due at the same time, but that date is inferred rather than confirmed DL-07: Stamp duty payment date. Sources disagree.

So the first quarter's turnover tax, the April fixed payment, health insurance and probably stamp duty all fall on the same day. Budget for April separately. A newly registered IE does not pay health insurance until the April after its first year, and how the premium will be set from the next base year onward is still unknown FX-05: Health insurance bands for later years. Not confirmed. A social (pension) payment may also apply in some cases; whether it applies to foreign IEs is unknown, and the calculator leaves it out FX-02: Social (pension) payment for IEs. Not confirmed.

The other three quarters are lighter: the quarter's turnover tax plus three monthly payments. The full yearly cost of an IE puts all of these in one calendar. Type her monthly fee into the turnover tax calculator and you get the same lines as amounts, with the deadlines in a timeline.

How foreign-currency income is converted into AMD

Turnover tax is assessed in drams, so a fee invoiced in euros, dollars or roubles has to be converted. Which exchange rate applies and on which date (the Central Bank of Armenia rate on the day you receive the money, for example, or something else) is an open question in our rule set FXR-01: Currency conversion. Not confirmed. We have not found a source we trust on it, so we do not guess.

In practice: keep each invoice, the bank credit advice and the date the money arrived, and ask your accountant which rate to use before you file the first quarter. The calculator converts with a default rate stored with its date, and you can change it to the rate you actually used. Getting paid from abroad covers the payment routes and what banks ask about incoming transfers.

Questions people ask

Is turnover tax charged on profit or on revenue?

On revenue. Costs only matter through the expense reduction described above, which has floors and is disputed in its details. The method page shows how the calculator treats it.

Do payments from foreign clients count as turnover?

Our rule set does not treat foreign clients differently, and the calculator counts all your IE income as turnover. The unsettled part is the exchange rate, not whether the money counts.

When can I switch to turnover tax?

A new IE has 20≈Estimate: Uses at least one rule that an accountant has not verified yet. days from registration to elect it DL-01: Regime election after registration. Sources agree, not verified. An existing IE can change regime by February 20≈Estimate: Uses at least one rule that an accountant has not verified yet. each year DL-02: Annual regime election. Sources agree, not verified. Miss the window and the general system applies for the whole year DL-03: Missing the election deadline. Sources agree, not verified.

Is the high-tech rate a separate regime?

No. It is a rate inside turnover tax, with the same cap IT-03: IT rate: turnover cap. Sources agree, not verified, and it has to be elected in the same windows as turnover tax itself DL-01: Regime election after registration. Sources agree, not verified.

What happens if I pay the quarterly tax late?

Our rule set does not include late-payment penalties, so we will not quote any. Do not assume there is a grace period; ask the SRC or an accountant.

Do I have to register for VAT on turnover tax?

Our rule set records VAT as mandatory above AMD 115,000,000≈Estimate: Uses at least one rule that an accountant has not verified yet., the same figure as the turnover cap, and voluntary below it VAT-01: VAT registration threshold. Sources agree, not verified. The calculator does not compute VAT. For a side-by-side of every regime at several income levels, see IE regimes compared.