Profit
Profit Tax is levied at 20% on taxable profit earned by legal entities (valid from 1 January 2001).

Legal entities created in foreign countries (non-resident) shall be liable to pay the tax only on income derived from sources in the territory of the Republic of Armenia.

Taxable profit is the positive difference between gross income and deductions.

Deductions are the expenses, losses and other deductions incurred by a taxpayer for the receiving of income within the taxable period (calendar year).

Capital gains
There is no capital gains tax in the Republic of Armenia.

Capital gains are included in the gross income and taxed as ordinary Profit Tax.

Tax incentives or privileges
By the Law on Profit Tax, following Profit Tax privileges are granted:

- Income derived from the sales of agricultural production is exempt from the Profit Tax.
- Gross income of the taxpayer is reduced in the amount of 150 % of salaries and wages paid to every disabled person employed by the taxpayer.

Specific incentives granted to foreign investments (see Section 2).

Available loss relief
Losses can be carried forward only for 5 years, with the exception for banks.

Losses cannot be carried back.

Group tax consolidation
There is no group tax consolidation.

Double taxation relief
Dividends received from profits taxed at 20% rate are reduced from the beneficiary's gross income, excluding dividends received by the subdivisions of non-resident companies.

Import/export duties
There are no export duties in the Republic of Armenia.

All imports (for exemption see 4.3) of goods are subject to VAT (15.1). Import duties are determined on an itemized basis.

Other taxes
- Excise Tax (diesel fuel, oil, spirits, wine, beer),
- Property Tax,
- Land Tax.

Transfer tax
There is no transfer tax in the Republic of Armenia.