Armenia VAT and Profit Tax Calculator 2026

T2Team2B team (lawyers and accountants) · Updated 14.10.2026

The calculator gives VAT payable, taxable profit, profit tax and net profit for an LLC or an IE, and for an LLC shows what the owner receives after the 5% dividend tax. Enter annual amounts with or without VAT. Rules as of 14.10.2026.

How are VAT and profit tax calculated?

Output VAT = sales excl. VAT × 20% (or gross × 20/120).
Input VAT = VAT on invoices from VAT-registered suppliers and on imports.
VAT payable = output − input; a negative result is carried forward or refunded.
Profit = sales excl. VAT − purchases excl. VAT − other deductible expenses − losses carried forward (5 years).
Profit tax = profit × 18%.

Tax	2026 rate	Filing
VAT	20% (exports 0%)	monthly, by the 20th
Profit tax (LLC and IE)	18%	annual return by 20 April; quarterly advances
IE social payment (born 1974+)	5% up to AMD 6m; 10% − 300,000 up to AMD 13.5m; cap AMD 1,050,000	annual
Dividends to individuals	5%	withheld by the company
Mandatory VAT threshold	AMD 115m turnover	prior or current year

Worked example: LLC with AMD 200m revenue

Revenue excl. VAT AMD 200,000,000; purchases from VAT payers AMD 120,000,000 (VAT 24,000,000); other expenses AMD 50,000,000.

Output VAT: 40,000,000; VAT payable: AMD 16,000,000
Profit: 200m − 120m − 50m = 30,000,000
Profit tax 18%: AMD 5,400,000; net profit AMD 24,600,000
Paid out as dividends: 5% = 1,230,000, owner receives 23,370,000. Combined burden on profit: 22.1%.

An IE with AMD 10,000,000 profit pays 1,800,000 profit tax plus 700,000 social payment, AMD 2,500,000 in total (25%).

What changed in 2025–2026?

The rates did not change: 18% has applied since 2020 and the VAT threshold is still AMD 115m. What changed is who ends up here: since 1 July 2025 legal, accounting, management consulting and staffing businesses (codes 69, 70, 78.2, 78.3) cannot use turnover tax. For 2025–2031 there is a 200% deduction for R&D salaries and 10% income tax for qualifying R&D staff (not modelled here). Profit-tax payers cannot deduct purchases from microbusinesses (since 2023) or from 1% high-tech turnover taxpayers (since 2025).

Who is this calculator for?

LLC owners crossing AMD 115m, consulting and law firms excluded from turnover tax, sole proprietors comparing regimes, and relocants planning to pay themselves dividends. Compare with the turnover tax calculator, check passive income in the dividend and rental tax calculator, and read the Taxes in Armenia guide.

This is a simplified estimate: non-deductible expenses, advances and incentives are ignored. The 18% IE rate is inferred from Tax Code Arts. 125 and 253 and Big-4 summaries; the social payment scale follows advisers’ guidance.

Frequently asked questions

What are VAT and profit tax rates in Armenia in 2026?

VAT is 20% (20/120, or 16.67%, of a VAT-inclusive price), exports 0%. Profit tax is 18% of taxable profit. Dividends paid to individuals are taxed at 5%.

When is VAT registration mandatory in Armenia?

When prior-year or current-year turnover exceeds AMD 115m. Businesses that did not elect turnover tax or microbusiness are also VAT payers from the start of the year. Below the threshold registration is voluntary.

How much does a sole proprietor pay on the general regime?

Profit tax of 18% plus, if born in 1974 or later, a social payment of 5% of profit up to AMD 6m, 10% minus AMD 300,000 up to AMD 13.5m, capped at AMD 1,050,000 a year. That is where the often-quoted 23% comes from.

What is the total tax if an LLC pays out all profit as dividends?

On AMD 30m profit: profit tax AMD 5.4m and 5% on the AMD 24.6m dividend, AMD 1,230,000. Total AMD 6.63m, about 22.1% of profit.

When are returns due on the general regime?

VAT returns monthly by the 20th of the following month; the annual profit tax return by 20 April, with quarterly advance payments.

Sources

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