The calculator works out the tax for each activity separately, applies the expense deduction and the floor, adds the IE fixed payments and compares the result with microbusiness and the general regime. Enter monthly, quarterly or annual amounts. Rules as of 14.10.2026.
How is turnover tax calculated in Armenia?
The tax period is the calendar quarter. For each activity: turnover (excl. VAT) × rate, minus a percentage of the quarter’s documented expenses, but never below the floor. Unused expenses carry to the next quarter of the same activity.
| Activity | Rate | Deduction of expenses | Floor (of turnover) |
|---|---|---|---|
| Trade | 10% | 9.5% | 1% |
| Production | 7% | 5% | 3% |
| Public catering | 12% | 9% | 3.5% |
| Services and other | 10% | 6% | 4.5% |
| Rent, interest, royalties | 10% | — | — |
| Sale of other assets, real estate | 10% | — | — |
| Listed secondary raw materials | 5% | — | — |
| Newspapers (editorial offices) | 1.5% | — | — |
| Listed high-tech (2025–2031) | 1% | — | — |
Only expenses backed by an e-invoice, cash-register receipt or act count: goods for resale, materials, wages, admin and selling costs. Fixed assets, depreciation, business trips and representation costs do not.
Worked example: IE providing services, one quarter
Turnover AMD 6,000,000, documented expenses AMD 1,500,000, born after 1974.
- Before deduction: 6,000,000 × 10% = 600,000
- Deduction: 1,500,000 × 6% = 90,000
- Floor: 6,000,000 × 4.5% = 270,000 (not reached)
- Turnover tax: AMD 510,000 (8.5%)
- IE fixed profit tax 5,000 × 3 = 15,000; social payment 5,000 × 3 = 15,000
- Total for the quarter: AMD 540,000
What changed in 2025–2026?
- From 1 January 2025 rates rose (trade was 5%, production 3.5%, catering 6%, services 5%), and the expense deduction with a floor was introduced.
- From 1 July 2025 codes 69, 70, 78.2 and 78.3 are excluded from turnover tax.
- The 1% high-tech rate applies 2025–2031 if the activity is on the Government list, with ≤50 employees and ≥90% of income from listed activities.
- From 2026 the new catering rules also apply outside Yerevan.
Who is this calculator for?
Relocating founders opening an IE in Armenia, LLC owners on turnover tax, accountants checking a quarterly return, and anyone choosing a regime before 20 February. Enter your activity code and the calculator checks regime exclusions. For the full picture, read Taxes in Armenia; compare with the VAT and profit tax calculator and the dividend and rental tax calculator, or look up your code in Armenian activity codes.
This is an estimate, not tax advice. The AMD 5,000 IE social payment and the high-tech code list follow advisers’ guidance; your actual activity, not only your registered code, decides.
Frequently asked questions
What are the turnover tax rates in Armenia in 2026?
Trade 10%, production 7%, public catering 12%, services and other activities 10%, rent, interest and royalties 10%, sale of other assets 10%, listed secondary raw materials 5%, newspapers 1.5%, and activities on the Government high-tech list 1% (2025–2031).
Can expenses reduce the turnover tax?
Yes, for trade, production, catering and other services. You deduct 9.5%, 5%, 9% and 6% of the quarter’s documented expenses respectively, but the tax cannot fall below 1%, 3%, 3.5% and 4.5% of turnover. Unused expenses carry forward to the next quarter.
What does a sole proprietor (IE) pay on top of turnover tax?
A fixed profit tax of AMD 5,000 per month and, if born in 1974 or later, a social payment of AMD 5,000 per month. Stamp duty (AMD 12,000 a year, 120,000 above AMD 12m income) and health insurance (AMD 129,600 a year if income exceeds AMD 2.4m) come on top.
Who cannot use turnover tax?
Businesses with prior-year turnover above AMD 115m, banks, insurers, gambling operators and, since 1 July 2025, legal and accounting services (NACE 69), management consultancy (70) and staffing agencies (78.2, 78.3). Construction, healthcare, advertising and engineering remain eligible.
When is the turnover tax return due?
Quarterly, by the 20th of the month after the quarter: 20 April, 20 July, 20 October and 20 January. Elect the regime by 20 February or within 20 days of registration.
Sources
- Tax Code of Armenia (arlis.am)
- Law HO-285-N (2024): rates and deductions
- Law HO-72-N (2025): exclusion of codes 69, 70, 78.2, 78.3
- KPMG Armenia Tax Alert, Feb 2025: 1% rate
- State Revenue Committee
free consultation
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