ArmInfo.egistered employees in Armenia will pay less income tax from 2022 than in 2021. At the same time, contributions to the compulsory pension system will grow. Contributions to the "1000 AMD" Foundation will remain at the current level.
At the end of 2019, the Armenian government announced major changes to the RA Tax Code. So, from January 1, 2020, Armenia switched to a flat system of taxation of income, which, regardless of the size of wages, was set at 23%. From January 1, 2021, the income tax rate was 22%, from January 1, 2022, it will be reduced to 21%, and from 2023 - to 20%.
In parallel, the government has provided for a gradual return to the previous conditions of the mandatory pension system. So, from January 2021, employed citizens began to pay at a rate of 3.5%, from January 1, 2022, they will pay an increase of 4.5%, and from January 1, 2023, payments will increase to 5%.
Since January 1, 2014 multi-stage funded pension system has been introduced in Armenia mandatory for persons born after January 1, 1974 (for citizens born before January 1, 1974, there is a distributive pension system). From July 1, 2018, the funded pension system has become compulsory for all citizens of Armenia born after January 1, 1974. At the same time, since July 1, 2018, along with the entry into force of the mandatory component of the funded pension, Armenia revised the amount of monthly payments on them: monthly mandatory payments from July 1 amounted to 2.5% of the salary (from the part of the employed citizens) instead of the early 5% ones. The state contributed another 7.5% to the accumulation account of the system participant, but not more than 37,500 thousand drams, and for self- employed persons - 450 thousand drams, against the early 5%, 25 thousand drams, and 300 thousand drams, respectively. Thus, from 2023, the country's authorities will return to the previous conditions of the mandatory pension system. As for the deductions to the "1000 AMD" Foundation, at the end of December 2020, a decision was made in Armenia to increase the rate of these deductions. In particular, the following decision was made: persons with a salary of up to 100 thousand drams will pay 1500 drams to the Foundation, from 100 thousand to 200 thousand - 3 thousand drams, from 201 thousand to 500 thousand drams - 5.5 thousand drams, from 501 thousand drams up to 1 million drams - 8.5 thousand drams, over 1 million drams - 15 thousand drams.
