The IT Certificate is Armenia’s main government incentive for supporting the IT sector. It allows eligible companies to receive certain tax benefits. While these incentives were quite significant until the end of 2023, they are now advantageous only for some businesses.
Benefits
Reduces personal income tax from 20% to 10%.
Eligibility Requirements
To obtain an IT Certificate, a company must:
Be registered for no more than 3 months.
Not own or have other IT companies in Armenia.
Operate in one of the approved IT activity categories.
Employ up to 30 employees.
Not be a subsidiary company.
Our Recommendation
Our team recommends choosing the Turnover Tax regime if your documented expenses are:
Less than 72% of revenue (for LLCs), or
Less than 79% of revenue (for sole proprietors).
If your expenses exceed these thresholds, the VAT (General Tax) regime is usually the more beneficial option.
