Armenia sets a 1% turnover-tax rate for listed high-tech activities from 2025 to 2031

What changed in detail

Armenia’s Law HO-500-N was adopted by the National Assembly on 4 December 2024, signed by the President on 17 December and officially published on 18 December 2024.

It amends an earlier amending law, HO-285-N of 12 June 2024, which had restated the turnover-tax rate table in Article 258(1) of the Tax Code from 1 January 2025. HO-285-N’s line 8 set a 5% rate for IT activities. HO-500-N replaces that line: line 8 now covers income from activities included in the list of high-technology activities set by the Government, at a rate of 1%.

Article 2 of HO-500-N brings it into force on 1 January 2025 and limits it: it applies until 31 December 2031.

The companion Law HO-499-N, adopted the same day, changed profit-tax and income-tax rules for the high-tech sector. It does not touch the turnover-tax rate.

What it means

The 1% rate is in force and, on the law’s own terms, runs until 31 December 2031; the ARLIS consolidated Tax Code still shows line 8 at 1%. It applies only to activities on the Government’s high-tech list, so a business that is “IT” in the ordinary sense but outside that list falls under the other lines of the table, at rates that differ by activity. The relief also sits inside the turnover-tax regime, so it is lost if the business exceeds the regime’s limits or is excluded from it, as professional services were from July 2025 under Law HO-72-N.