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Doing business in Armenia

Republic of Armenia for a total duration of 183 days or more, or whose centre of vital interests is in the Republic of Armenia. For a resident the taxable income received within or outside the territory of the Republic of Armenia is considered the object of taxation. For a non-resident the taxable income received from Armenian sources is considered the object of taxation. Income tax rates

Income tax is calculated as follows (by a tax agent): Amount of Monthly Taxable Income

Tax Amount (in %)

Up to 80,000 AMD

10% of taxable income

Over 80,000 AMD

8,000 AMD plus 20% of the amount exceeding 80,000 AMD

Rate of the annual taxable income Amount of Annual Taxable Income

Tax Amount (in %)

Up to 960,000 AMD

10% of taxable income

Over 960,000 AMD

96,000 AMD plus 20% of the amount exceeding 960,000 AMD

• Income tax on royalties and income gained from property leases (except lease incomes gained by private entrepreneurs) shall be calculated at the rate of 10%.

• Income tax on interest income shall be calculated at the rate of 10%.

• Tax agents calculate income tax liability at 10% rate from income paid for acquisition of property from individuals. Non-residents receiving income in the country must pay: © 2012 Grant Thornton CJSC. All rights reserved. 33

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