Armenia VAT and Profit Tax Calculator
Work out VAT payable, 18% profit tax and net profit for an LLC or sole proprietor on the general regime, including dividends to the owner.
The calculator is built for LLCs and sole proprietors (IEs) on the general regime. Enter annual figures, with or without VAT, to see VAT payable, taxable profit, profit tax and net profit. For an LLC it shows what the owner receives after dividends; for an IE it adds the social payment.
It is useful if your turnover has passed AMD 115 million, if your activity is closed to turnover tax (legal and accounting services, for example), or if you are comparing regimes.
How VAT and profit tax are calculated
- Output VAT: revenue excluding VAT × 20%. If amounts include VAT, the tax is 20/120 of the total.
- Input VAT: VAT on purchases from VAT-registered suppliers, including imports.
- VAT payable: the difference between the two. If it is negative, the balance is carried forward or refunded.
- Profit: revenue excluding VAT, minus purchases excluding VAT, other deductible expenses and prior-year losses; profit tax is 18%.
If you are not VAT-registered, input VAT cannot be offset and becomes part of your costs.
Rates and deadlines
| Tax or payment | Rate | When due |
|---|---|---|
| VAT | 20% | monthly, by the 20th of the following month |
| Profit tax (LLC and IE) | 18% | return by 20 April; advances by the 20th of the last month of each quarter |
| IE social payment (born 1974 or later) | 5% on profit up to AMD 6m; 10% − AMD 300,000 up to AMD 13.5m; above that AMD 1,050,000 | for the year |
| Dividends to individuals | 5% | withheld by the company on payment |
| Mandatory VAT registration | revenue above AMD 115m | — |
Example: an LLC with AMD 200 million in annual revenue
AMD 16,000,000
VAT payable
AMD 5,400,000
Profit tax 18%
AMD 24,600,000
Net profit
AMD 23,370,000
To the owner after 5%
The LLC has AMD 200,000,000 in revenue excluding VAT, AMD 120,000,000 in purchases from VAT payers and AMD 50,000,000 in other costs such as payroll. Output VAT is AMD 40,000,000, input VAT AMD 24,000,000, so VAT payable is AMD 16,000,000. Profit is AMD 30,000,000 and profit tax AMD 5,400,000. If all net profit is paid out as dividends, AMD 1,230,000 is withheld, and the total tax burden on profit comes to 22.1%.
For a sole proprietor with AMD 8,000,000 in profit, profit tax is AMD 1,440,000 and the social payment is 10% × 8,000,000 − 300,000 = AMD 500,000. That is AMD 1,940,000 in total, or 24.25% of profit.
Frequently asked questions
Once revenue exceeds AMD 115 million. Below that you can register voluntarily, for example if your customers are VAT payers and want to reclaim the tax.
18% profit tax and, if you were born in 1974 or later, a social payment on a sliding scale. The often-quoted 23% is 18% tax plus a 5% social payment on profit up to AMD 6 million. On AMD 5,000,000 of profit, for instance: 900,000 + 250,000 = AMD 1,150,000.
Yes, if the dividends are reinvested in the same company’s charter capital in the same year. You can model this in the dividend and rental tax calculator.
The difference is carried forward to later periods or refunded. This often happens after a large purchase of equipment or stock.
A loss can be carried forward for 5 years and set against future profit. The calculator has a “Prior-year losses carried forward” field for this.
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