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On December 4, 2024, the National Assembly of the Republic of Armenia passed the “Law on State Support for the High-Tech Sector” to improve the competitiveness of Armenia’s high-tech industry, attract new talent to the market, enhance employees’ skills, and strengthen Armenia’s position as an exporter.
According to economic activity classifications, the Government defines the types of activities eligible for state support in the high-tech sector.
Eligible entities include:
- Commercial organizations registered in the Republic of Armenia.
- Individual entrepreneurs registered in the Republic of Armenia.
Who Can Apply
Entities operating in the IT sector may apply for state support if at least 90% of their declared turnover, as indicated in their VAT and/or turnover tax declarations, is derived from high-tech sector activities during the reporting period for state support.
Forms of State Support in the High-Tech Sector
The state will support high-tech companies in the following areas:
- Attracting Labor Migrants: Migrants engaged in professional work and employed by the business entity. State support is provided in the amount of 60% of the calculated income tax on the salary and equivalent payments or remuneration under a civil contract.
- Hiring New Employees: State support is provided to IT business entities in the amount of 60% of the calculated income tax on the salary and equivalent payments or remuneration under a civil contract. (A new employee is a worker entering the high-tech sector for the first time and performing professional work.)
- Employee Training: Training and retraining of professionals performing specialized work. State support is provided in the amount of 50% of the calculated income tax on the salary and equivalent payments or remuneration under a civil contract for the reporting period.
Take Advantage of State Support for Your High-Tech Business!
The new “Law on State Support for the High-Tech Sector” offers valuable benefits to eligible entities in Armenia. Don’t miss out on the opportunity to enhance your business’s competitiveness, attract top talent, and invest in employee development.
Key Points
- Support for labor migrants (including those working under civil contracts) is calculated as 60% of their personal income tax on remuneration. This state support will take effect on January 1, 2026, and will remain in force until December 31, 2031.
- The total state support provided for a given reporting period cannot exceed 50% of the total personal income tax calculated on the remuneration of all employees (including those under civil contracts) for the same period.
- Organizations or individual entrepreneurs operating under the turnover tax system may continue to receive support after the third calendar year following the start of support, provided they switch to the general taxation system.
For more information on the High-Tech Industry Law and tax benefits, contact us or request a quote today.
Attention: This material is for general informational purposes only and might not cover all the key aspects. For detailed information, please refer to the relevant articles and decisions of the Tax Code.
