Tax incentives for start-up IT companies in Armenia to be extended for another year

November 24, 2022  19:39

State support provided in the form of tax benefits to start-up IT companies in Armenia will be extended for another year until 2023, December 31 inclusive. Today the government approved the relevant draft laws "On amendments and additions to the Law on State Support of the IT sphere" and "On Amendments to the Tax Code of the Republic of Armenia".

The government informs that according to the legislation the newly created, starting business entities in the sphere of information technologies are provided tax exemptions, in particular, by applying 0% income tax rate and 10% income tax rate.

According to information provided by the government, the year 2022 is unprecedented in the number of applications and certificates granted. While in 2015-2021 1,074 organizations (sole proprietors) received a tax exemption certificate for the period, in 2022 alone, as of November 8, the number of certified organizations is 1,230, of which 1,105 founders are citizens of other countries.

According to the law, business entities are commercial and non-commercial organizations operating in the field of information technology, including foreign legal entities that register a new organization in Armenia. They too can apply for it, get a certificate and start and expand their business in Armenia on favorable terms.

Earlier Tech reported that four IT companies in Armenia have been liquidated and 17 are in the process of liquidation over the past seven months, four more companies have been declared bankrupt and 342 individual entrepreneurs have been deregistered as a result of the 2022 foreign currency devaluation in Armenia.

In response to a written request from Tech, the Aremnian Ministry of Hi-Tech Industry reported that the total number of employees of closed/de-registered business companies over the past seven months was 585.

When asked how many IT companies are operating in Armenia, the ministry said 2022. As of September, 2,794 business entities were active in the field of information technology and submitted a report to the Aremnian Ministry of Hi-Tech Industry․

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