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Doing business in Armenia

• Constructions for public and production use - 0.3% of tax base.

• Other Constructions stated as taxable objects, except garages: Tax base

Tax rate

Up to 3 million AMD

0% of tax base

From 3 million to 10 million AMD inclusive

100 AMD plus 0.1% of amount above 3 million AMD of tax base

From 10 million to 20 million AMD inclusive

7,100 AMD plus 0.2% of the portion exceeding 10 million AMD of tax base

From 20 million to 30 million AMD inclusive

27,100 AMD plus 0.4% of the portion exceeding 20 million AMD of tax base

From 30 million to 40 million AMD inclusive

67,100 AMD plus 0.6% of the portion exceeding 30 million AMD of tax base

40 million AMD and more

127,100 AMD plus 1.0% of the portion exceeding 40 million AMD of tax base

• Garages – 0.2% of tax base. Value added tax (VAT)

The rate of VAT is determined in the amount of 20% of taxable turnover of goods and services. The amount of VAT within the amount of the total indemnity for the goods and services (including 20% rate) shall be determined at the rate of 16.67 %. The invoice amount is deemed as a taxable base, to which the excise duties on the domestic or imported products are possibly levied. The principle of destination prevails and even in this case all imports coming from abroad are subject to VAT. © 2012 Grant Thornton CJSC. All rights reserved. 36