Dividends

Dividends paid from profit, which has been subject to Armenian Profit Tax, are not taxable from domestic corporations and individuals.

Capital gains

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

Capital gains on shares held by corporate shareholders are included in their taxable income.

Foreign subsidiaries

Dividends

Dividends paid by a resident are subject to withholding tax at the rate 15 %, reduced under all double taxation treaties negotiated by the Republic of Armenia.

Capital gains

Capital gains are taxed as business income (profit).

Reorganisations

The current tax system does not include specific provisions in respect of reorganizations.

Profits arising from the liquidation are reduced in the amount of the positive difference between the amount of residual property received from the shares of the taxpayer and balance sheet value of the shares.

Acquisitions
A foreign investor can acquire an interest in a domestic company or business through acquisition of shares or assets as part of the privatization process of the domestic enterprise or by purchasing from the owners after privatization.