Salary & Payroll Taxation in Armenia (State Revenue Committee)
Payroll deductions in the Republic of Armenia are regulated under the Tax Code of the Republic of Armenia:
- Personal Income Tax (PIT): Flat 20.0% uniform rate across all salary levels (fully harmonized from previous progressive scales).
- Mandatory Funded Pension Contribution:
- Gross Salary up to 500,000 AMD: 5.0% employee deduction + 5.0% state budget co-funding.
- Gross Salary above 500,000 AMD: 10.0% minus 25,000 AMD employee contribution (maximum employee pension capped at statutory limits).
- Military Insurance Fund (1000plus.am Stamp Duty): Progressive monthly fixed fee supporting disabled servicemen and fallen soldiers' families:
- Up to 100,000 AMD: 1,500 AMD
- 100,001 to 200,000 AMD: 3,000 AMD
- 200,001 to 500,000 AMD: 5,500 AMD
- 500,001 to 1,000,000 AMD: 8,500 AMD
- Above 1,000,000 AMD: 15,000 AMD
- Zero Employer Payroll Surcharge: The employer's role is strictly that of a tax withholding agent; there are no separate employer-borne social insurance percentage additions.
Statutory Regulatory Framework: Compliant with the Tax Code of the Republic of Armenia, Labor Code of the Republic of Armenia, Cadastre Committee statutory duties, and regulatory resolutions issued by the State Revenue Committee (SRC) and PSRC.