Armenia. Tax and legal news. January 2022.

17/02/2022
Armenia. Tax and legal news. January 2022.

Lower personal income tax, higher social contributions

  • From 1 January 2022, the personal income tax rate in Armenia has been reduced from 22% to 21%. In 2023 it will be reduced by further 1% to reach 20%.
  • Also from 1 January 2022, significant legislative changes came into force concerning social contributions:
    • The rate of social contributions from income up to AMD 500,000 (approx. EUR 915) paid by the employer has risen by 1% to 4.5% of after-tax income. At the same time, the state share of social contributions decreased to 5.5% of income.
    • For employees with income from AMD 500,000 (approx. EUR 915) the amount of social contributions is calculated as follows: the employer pays 10% of the employee's net income minus AMD 27,500 (approx. EUR 50) and the state pays AMD 27,500 (approx. 50 EUR). However, the total amount of contributions must not exceed AMD 74,500 (about EUR 136).
  • February 20, remains the deadline for submitting personal income tax returns and paying taxes for January. We kindly remind you of not forgetting to update the calculation of the abovementioned obligatory payments.

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