The Armenian National Assembly announced that President Vahagn Khachaturyan has signed the Tax Code amendments on 4 April 2025.
The changes impact the VAT treatment of advocacy-related services and revise the rules for deductible expenses linked to turnover tax. This legislation also expands the business activities excluded from the turnover tax and micro enterprise regimes.
Turnover tax regime
The law introduces measures clarifying that specific provisions do not apply to the tax base for free legal services offered by VAT-paying advocates. This exemption applies as long as the value of these services does not exceed 5% of the VAT payer’s total taxable transactions during the reporting period. The law also defines which expenses are deductible or non-deductible for calculating turnover tax.
This includes taxpayers involved in legal and accounting services, real estate transactions, management consulting, head office activities, or domestic passenger transportation, who cannot apply these regimes retroactively from 1 January 2025.
The turnover tax regime replaces corporate tax and VAT, and applies to taxpayers with annual turnover up to AMD 115 million.
The rates vary by activity; for instance, it is 7% for manufacturing, 10% for trading, and 12% for catering and restaurants.
Micro enterprise regimes
The micro enterprise regime applies to taxpayers with annual turnover under AMD 24 million, offering exemptions from corporate tax and VAT.
