The Armenian government has approved a package of bills aimed at providing state support to the high-tech industry, which includes several tax incentives for IT companies. The bills, deemed urgent by the government, received approval from the National Assembly’s Standing Committee on Economic Affairs on November 11.
According to Minister of High-Tech Industry Mkhitar Hayrapetyan, the new initiative focuses on two key areas of support for the technology sector. First, companies will be eligible for a 50% income tax compensation when hiring foreign professionals employed as contracted workers.
The second area targets startups with up to 30 employees, offering a 100% income tax exemption for newly hired employees in these companies.
“This legislative package aims to stimulate the development of the high-tech sector by providing state support and specific tax benefits,” the minister emphasized while presenting the initiative to the parliamentary committee.
The changes will amend the "Law on State Support for the High-Tech Sector" and the Tax Code of the Republic of Armenia.
Former Minister of Economy of Armenia Vahan Kerobyan recently reported a significant downturn in the country's IT sector. According to his statement on Facebook, the industry shrank by approximately 13% in the first half of this year.
Earlier, BMG reported that, according to a study by the consulting company Modex, the turnover of Armenia's IT sector in 2023 amounted to 837 billion drams ($2.12 billion), which is 252 billion drams (over $630 million) or 43% more than in 2022. Of this turnover, about 87% or 755 billion drams ($1.91 billion) was generated in foreign markets (i.e., exported), while 13% or 114 billion drams was realized in the domestic market.
