Effective January 1, 2025, Armenia will implement new legislative changes aimed at fostering the growth of the high-tech sector. The Ministry of High-Tech Industry has unveiled a comprehensive state support program for the industry, encompassing tax incentives and subsidies.
The program includes a 60% income tax compensation for labor migrants in the IT field. In 2025, this support will be provided to employers, transitioning to direct support for employees from 2026 to 2031. Similar compensation is offered to companies hiring specialists entering the sector for the first time.
Tax burdens on IT companies are significantly reduced: the turnover tax rate will drop from 5% to 1%, and the income tax rate in the research and development (R&D) sector will be halved from 20% to 10%. Companies exclusively engaged in R&D activities will be eligible to reduce their taxable profit base by 200% of the salaries paid to professional employees.
Additionally, a special taxation framework is introduced for companies with up to 50 employees, along with flexible depreciation terms for research-related capital assets. Companies investing in training and retraining staff can receive support equivalent to 50% of the income tax paid.
