IT Companies’ Employees' Salaries to be Taxed at 5% Instead of 20% - New Bill

The Ministry of Economy has introduced a bill proposing to tax the salaries of employees in IT companies at a rate of 5% instead of the current 20%. This applies to companies whose gross income during the tax year has been derived from sources located outside of Armenia by 80% or more.

The bill also mentions that the salaries and equivalent payments made to employees of such organizations may be denominated in foreign currency. The justification for this regulation is linked to the significant appreciation of the dram against foreign currencies in recent times.