Employer Tax Contributions

Tax Type	Rate	Base
Personal Income Tax (PIT)	20%	Employee's gross salary after deducting social payments
Social Payments (Pension Fund)	4.5% - 10% (capped)	Employee's gross salary (tiered: 4.5% for salaries up to AMD 500,000; 10% for salaries above AMD 500,000 minus AMD 22,500, capped at AMD 87,500)
Military Stamp Duty	Fixed amount	Employee's gross salary

Filing & Compliance

• Monthly reports for calculated income tax and social payments are due by the 20th day of the following month.
• Withheld amounts for income tax and social payments must be remitted by the 20th day of the month following the reporting month.
• Annual reports summarizing total income, withheld taxes, and social payments are due by April 15th of the following year.

In Armenia, employers deduct various taxes from employee salaries, primarily income tax and social security contributions.

Income Tax

• Rate: Flat rate of 20% on all forms of compensation.
• Scope: Applies to salaries, benefits, bonuses, and other compensations.
• Specific Cases: Employees of certified IT companies engaged in R&D may benefit from a reduced 10% income tax rate. Certain high-tech companies may receive a 60% reimbursement on income tax paid for new hires (including labor migrants in 2025) and employees undergoing professional training, subject to specific conditions. This reimbursement is applicable until December 31, 2031, with support for new hires provided for three years from their first professional employment date.

Social Security Contributions

• Rates & Tiers: 5% of monthly gross salary up to AMD 500,000. For salaries above AMD 500,000, the contribution is 10% of the excess amount, minus AMD 25,000, with a maximum contribution capped at AMD 87,500.
• Maximum Threshold: Social security contributions are capped at 15 times the minimum monthly wage (currently AMD 75,000), meaning the maximum monthly salary subject to social security is AMD 1,125,000.

Other Deductions

• Deductions may include paid benefits and pension contributions, although certain exceptions apply as outlined in Armenia's tax legislation. Voluntary cumulative pension contributions (including employer contributions) are deductible up to 5% of an employee's gross income.

Additional Information

It's important to note that specific tax benefits and deductions may apply based on individual circumstances, the industry, or company-specific regulations. The information above is current as of February 5, 2025, and might be subject to change based on legislative updates. For specific and up-to-date details regarding employee tax deductions, consulting with a tax professional or referring to the latest official tax regulations in Armenia is recommended.