Armenia’s National Assembly has passed legislation introducing support measures and tax incentives aimed at advancing programs in the high-tech sector on 4 December 2024.
These laws were presented by Minister of High-Tech Industry Mkhitar Hayrapetyan at the October 24 session of the RA Government on 24 October 2024.
This legislative package aims to develop the sector, promote scientific research, innovation, and create new products in the country. This package also introduces new state support tools and a range of tax incentives for technology companies to create more favourable conditions for the sector’s development.
These laws apply to businesses and entrepreneurs engaged in Armenia’s high-tech sector, with at least 90% of their turnover from high-tech activities. Other key provisions include a 10% income tax rate on wages for R&D, a 1% turnover tax for high-tech activities, and a profit tax incentive with a 200% salary deduction for high-tech sector professionals.
The support also covers compensation for labour migrants, employee recruitment, and staff training, with compensation available until 31 December 2031.
Tax incentives starting 1 January 2025, include income tax, profit tax, and turnover tax benefits, valid until 31 December 2031.
