Which tax regime fits you
Micro-business, turnover tax or the general regime — which ones are open to you, roughly what each would cost, and exactly which article closes the others. RA Tax Code, articles 253–269.
Who is the taxpayer
Main activity
Where you operate
Does any of this apply to you?
This page does not pick a regime for you. It shows which ones are open, what each would roughly cost, and the article that closes the rest — the choice is a conversation with an accountant.
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Deadline: a continuing business declares its choice by 20 February; a newly registered one within 20 days. Miss it and article 59 makes you a VAT payer for the whole year — there is no late-filing cure.
A sole trader pays 23% profit tax on the general regime, not the 18% a company pays (art. 125).
Picking the regime is a one-shot decision each February, and the cheapest one on paper is often not the cheapest to run. Half an hour with an accountant beforehand is the whole game.
We help you pick the regime before you register Ask an accountantChoosing a tax regime in Armenia
There are three: micro-business, turnover tax and the general regime (VAT + profit tax). The first two are open only within thresholds and exclusions; the third is always open, because it is the residual.
Micro — prior-year turnover up to ֏24 million (article 267(3)). It exempts you from all state taxes (article 269(1)) except the duty to withhold income tax from what you pay your employees (269(2)(2)), plus import, excise, environmental and road tax. There is no fixed payment and no minimum in this regime.
Turnover tax — prior-year turnover up to ֏115 million (article 254(2)). For a company it replaces VAT and profit tax; for a sole trader it replaces VAT only (article 253), so an ԱՁ still pays ֏5,000 a month of profit tax on top (article 125(3)).
The exclusions that matter most. Trade is out of micro entirely (article 267(5)(1)). So is software development (267(5)(2)) — even though turnover tax charges Government-listed high-tech activity just 1%. Catering is excluded from micro only inside Yerevan's administrative boundaries; in the regions it is eligible. And legal, accounting, management-consulting and staff-supply work (article 254(3)(3.1)) is outside turnover tax at any turnover.
Two things that are easy to miss. First, holding a live contract to receive rent, interest or royalties disqualifies you from micro entirely, not just for that income (267(5)(11)). Second, a buyer on the general regime cannot deduct what it spends with a micro subject (article 113(1)(8)), which makes micro a B2C regime in practice.
The deadline. A continuing business declares by 20 February, a newly registered one within 20 days. Missing it has no cure: article 59 makes you a VAT payer for the whole year. And once you drop out of micro you cannot return to it in the same year (article 268(2)).
What are the thresholds for micro and turnover tax?
Micro — prior-year turnover up to ֏24 million (article 267(3)); turnover tax — up to ֏115 million (article 254(2)). Both are measured across all activities together.
Can an IT company be a micro subject?
No. Article 267(5)(2) names software development and the processing and transmission of information. Counter-intuitively, turnover tax charges Government-listed high-tech activity only 1%.
Is there a headcount or foreign-ownership restriction?
No. Neither article 254 nor 267 limits the number of employees, and the foreign-participation bar was repealed in 2019 (ՀՕ-68-Ն). Both "rules" still circulate online; neither is in the law.
What happens if I miss the deadline?
Miss 20 February and article 59(1) makes you a VAT payer for the whole year. The Code provides no way to file late.
What changes in 2027?
Three separate dates: from 1 January e-commerce platform operators leave both regimes (ՀՕ-83-Ն); from 1 February, companies that are bank shareholders (ՀՕ-385-Ն); from 1 June, realtors and property managers leave micro (ՀՕ-391-Ն). None of them applies in 2026.
Sources: RA Tax Code, articles 30, 59, 113, 125, 253–270. Rates as of 2026-08-03.