On 23 November 2017, the income and capital tax treaty between Armenia and German entered into force after the completion of ratification procedures on both sides. The agreement was signed on 29 June 2016. The treaty provides for withholding tax on dividends (either 7% or 10%), interest (5%), and royalties (6%).

For double taxation relief, Armenia applies the credit method for the elimination of double taxation. Germany generally applies the exemption method, including for dividends when the beneficial owner is a German company that owns at least 10% of the capital of the Armenian payer, and the payer is not tax exempt or able to deduct the dividends. However, Germany applies the credit method for dividends not qualifying for exemption, interest, royalties, capital gains from shares or interests deriving at least 50% of their value from immovable property situated in the other State, and certain other items of income in accordance with German tax law.

The treaty generally applies from 1 January 2018, although Article 26 (Assistance in the Collection of Taxes) will apply as soon as the competent authorities have so agreed by mutual agreement in accordance with Article 24 (Mutual Agreement Procedure).