EY Armenia Tax Alert: Armenia's New Tax, Reporting and Compliance Landscape

On 3 July 2026, Armenia enacted Law HO-295-N amending the Tax Code of the Republic of Armenia and introducing a number of changes to the excise tax regime applicable to tobacco and nicotine-containing products.

The amendments, which enter into force in part on 1 January 2027 and in part on 1 February 2027, expand the definition of tobacco products, introduce specific excise tax rates for certain new-generation tobacco and nicotine products that were not previously explicitly covered in the excise tax rate table, and increase excise tax rates for conventional tobacco products and certain tobacco substitutes. The law also provides for further excise tax rate increases in 2028 and 2029 and introduces a number of technical amendments to the excise tax rules.

By these changes, Armenia continues its policy of gradually strengthening the excise taxation of tobacco, heated tobacco and nicotine-based products. Businesses involved in the import or manufacture and sale of such products should review the updated product classifications and prepare for the phased excise tax increases.

On 3 July 2026, Armenia enacted Law HO-309-N amending the Tax Code of the Republic of Armenia and introducing a series of changes aimed at expanding the use of electronic cash register machines (e-CRMs), streamlining documentation requirements and further digitalizing tax administration. Most amendments enter into force on 1 January 2027, while certain provisions concerning document issuance and cash register receipts become effective from 1 September 2026.

The amendments formally integrate electronic cash registers and electronic receipts into various Tax Code provisions, clarify the timing of issuance of settlement and shipment documents, expand the mandatory use of e-CRMs to additional activities, including certain passenger transportation services, and introduce an AMD 500,000 penalty for transactions conducted without an e-CRM where its use is mandatory.

These changes are intended to promote broader adoption of electronic transaction reporting and align the regulatory treatment of traditional and electronic cash registers. Businesses should assess the impact of the expanded e-CRM requirements and ensure readiness to comply with the new operational and penalty provisions before the relevant effective dates.

On 3 July 2026, Armenia enacted Law HO-310-N amending the Tax Code of the Republic of Armenia and substantially revising the framework governing the automatic exchange of financial account information under the OECD Common Reporting Standard (CRS). The amendments replace the existing CRS-related provisions with a more detailed regime governing the identification of reportable accounts, annual reporting obligations, due diligence requirements, and record-keeping obligations of reporting financial institutions.

The law also introduces a dedicated framework for CRS compliance audits and establishes significant penalties for failures to perform due diligence procedures, submit required CRS information, maintain supporting documentation, or provide complete and accurate reports. In addition, penalties may apply to account holders and controlling persons that fail to provide required self-certifications or provide incomplete or inaccurate information.

These changes are intended to enhance Armenia’s implementation of international tax transparency standards. Reporting financial institutions should review their CRS due diligence, reporting and compliance procedures in light of the expanded requirements.

On 13 November 2025, Armenia enacted Law HO-391-N amending the Tax Code of the Republic of Armenia and introducing a special tax regime for income derived by individuals from real estate entrusted to professional real estate managers under the Law on Real Estate Activity.

Under the new rules, such income is subject to personal income tax at a rate of 10%. Where the aggregate annual income derived from managed property exceeds AMD 60 million, the individual property owner is required to calculate and pay an additional 10% personal income tax on the excess amount.

The new regime is intended to regulate the taxation of income earned through professional real estate management arrangements. Property owners and real estate management companies should assess the impact of the new rules on existing structures before they become effective on 1 June 2027.

On 28 July 2026, Armenia enacted Law HO-385-N amending the Tax Code of the Republic of Armenia and introducing a special tax regime for dividends distributed by banks. Under the new rules, dividends derived from non-listed shares of banks, as well as participation in a bank’s share or equity capital, will be subject to a 15% tax rate. The amendments apply to both corporate and individual recipients and establish new withholding and reporting obligations for banks acting as tax agents. The rules also extend to certain shareholders holding more than 1% of a bank’s listed shares.

These changes represent a departure from the previously applicable tax treatment of dividends, under which dividends paid to resident corporate shareholders were generally exempt from tax, while dividends paid to individuals and non-resident corporate shareholders were generally subject to tax at a 5% rate. The new regime is intended to increase the taxation of income derived from investments in the banking sector.

The amendments generally enter into force on 1 February 2027 and will also apply to dividends distributed from profits relating to periods before 1 January 2027. It should be noted, however, that a substantially similar regime has already applied since 30 July 2026 with the introduction of a state duty on such dividend distributions under comparable conditions. This transitional state duty regime will remain in force until 31 December 2026, after which it will be replaced by the new tax rules set out in the Tax Code.

On 3 July 2026, Armenia enacted Law HO-407-N amending the Tax Code of the Republic of Armenia and introducing a number of changes to the administration of immovable property tax and vehicle property tax. The amendments clarify the scope of certain taxpayers and establish revised procedures for the payment and administration of local taxes.

Among other changes, the law requires taxpayers to fully settle outstanding immovable property tax or vehicle property tax liabilities before completing various registration-related actions, including property registration, issuance of new ownership certificates, vehicle registration or deregistration, and vehicle re-registration. The amendments also require registration authorities to verify, based on information provided by the relevant tax authorities, that there are no outstanding tax liabilities before carrying out such actions.

These changes are designed to improve the collection and administration of local taxes and to strengthen enforcement mechanisms. Property owners, vehicle owners and businesses should consider the new tax clearance requirements when planning property or vehicle registration transactions.

On 17 July 2026, Armenia enacted Law HO-344-N amending the Tax Code of the Republic of Armenia and introducing changes to the Compliant Taxpayer Certificate regime. Under the new rules, compliant taxpayer certificates will generally be issued for an indefinite period, subject to ongoing quarterly monitoring by the tax authorities. The tax authorities will also be empowered to suspend the validity of a certificate in cases prescribed by the Government.

The amendments introduce additional benefits for certificate holders, including priority and preferential taxpayer services and the assignment of a dedicated tax officer responsible for individual support. At the same time, compliant taxpayers will benefit from a reduced tax audit risk assessment coefficient (0.8) applied when determining the likelihood of comprehensive tax audits.

These amendments are intended to strengthen the incentives available to compliant taxpayers while introducing a continuous monitoring mechanism to ensure ongoing eligibility for the regime. The new rules enter into force on 1 January 2027.