business overview : corporate taxation : individual taxation : VAT : excise tax : property tax : land tax : withholding tax

WITHHOLDING TAX

Withholding Tax on Corporate Profit

The profit tax is withheld by a tax agent from the total amount of income paid to a non-resident at the following rates:

Withholding Tax on Personal Income

The tax on monthly income less than 80,000 AMD as well as on royalties, leasing and interest income, paid to an individual is withheld by a tax agent on each payment at the rate of 10%. Taxes on monthly income in excess of 80,000 AMD is withheld at 20%.

Peculiarities of Taxation of Foreign Citizens and Persons Without Citizenship

Income of foreign citizens and persons without citizenship should be withheld by the tax agent at the source at the following rates:

Dividends and Royalties

The domestic rate of tax on non-resident's dividends and royalties is 10%. Tax on dividends is only paid by non-resident enterprises (i.e. nonresident physical persons are exempt). These rates may be reduced by a tax treaty.
The maximum rates for this tax, taking into account tax treaties are:

N.B.
(a) rate of 5% where the payee holds more than USD 40,000.
(b) rate of 5% where the payee holds more than 25% of the payer's holdings.
(c) rate of 10% where the payee holds more than 25% of the payer's holdings.