Armenia: 1% Turnover Tax for High-Tech, a Company in Two Days
The Armenian IT tax holiday ended on 31 December 2024, and most guides still say otherwise. What replaced it runs to 2031: a 1% turnover tax for high-tech companies, a salary-based R&D deduction of up to 200%, and hiring support that changed form again in 2026. We register the LLC and pick the regime that actually applies now.
Setup time
2-3 business days, fully online
Corporate tax
18%, or 1% turnover for high-tech
Foreign ownership
100% permitted
Main legal form
LLC, no minimum capital
Futura Digital works with local partners and industry associations in Armenia.
Armenia is the jurisdiction where the widely quoted answer is the wrong one. The zero-rate IT certificate stopped applying at the end of 2024; the regime that replaced it is different, narrower and still worth having.
Market
Why Founders Choose Armenia for Business Registration
1% turnover tax for high-tech
Under the framework in force from 2025 to the end of 2031, the turnover tax rate for high-tech companies was cut from 2% to 1%.
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Up to 200% deduction on R&D salaries
Salary-based deductions for research and development reach 200%, capped at half of the profit tax, with more room for research-intensive companies.
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A company in two days, no capital required
The one-stop e-register incorporates an LLC in two to three business days, with no state registration fee and no practical minimum share capital.
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Hiring support, in its 2026 form
From 1 January 2026 the income tax support goes to employees directly rather than through the employer, and a company taking on new staff receives a 60% income tax refund.
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Who It's For
Who Should Consider Registering a Company in Armenia
IT and gamedev companies moving teams
Studios relocating developers who need a fast local entity and clarity on what the hiring support now covers.
Research-intensive product companies
Companies whose costs are mostly engineering salaries, where the 200% salary deduction bites hardest.
Companies qualifying as high-tech
Businesses that can sit inside the high-tech definition and use the 1% turnover rate instead of profit tax.
Founders who need speed
Teams that have to be operational within a week and cannot wait out a European incorporation timetable.
How we help you open a company in Armenia
One partner for all questions
Registration takes days and costs nothing in state fees. The real question is which regime the company sits in: standard profit tax, the turnover tax, or the high-tech track — and that has to be elected on time, within twenty days of registration.
Futura Digital manages the entire journey — from initial structuring to a fully operational company with bank accounts and a resident team.
- Incorporation: LLC registration through the one-stop e-register, tax number and beneficial-owner filing.
- Regime choice: standard profit tax, turnover tax or the high-tech track, elected within the statutory window.
- R&D: the salary-based deduction of up to 200% and the documentation it requires.
- People: employment contracts for relocated staff and the 2026 form of the hiring support.
- Ongoing: payroll, bookkeeping, VAT and annual reporting.
Setup process
Partners
We work with selected local partners in Armenia to support contractors, payroll and compliance for distributed teams.
- Local partner support for contractor management, banking compliance and personal tax accounting.
- Practical solutions for paying a distributed team and contractors across jurisdictions.
FAQ
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we’ll help you with it in any jurisdiction.