Tuesday, January 21 2025 10:52

ArmInfo. The State Revenue  Committee (SRC) of Armenia explains who and under what circumstances  must file a tax return for income received in 2024 by May 1, 2025.

Do you need to file an income tax return in 2025?

If you are a resident and citizen of the Republic of Armenia and were  an employee (under an employment contract) or worked under a civil  contract during 2024 and received income subject to income tax under  this contract, or filed a tax return for the reporting year 2023 in  2024, as well as if you belong to other groups of taxpayers filing a  tax return in 2025 (the full list is here:  https://src.am/am/getNews/833), then YES, you need to file an annual  tax return this year.

Do you need to file a return if you worked for several months in  2024?

Yes, you must file a tax return, even if you worked only one month in  2024, you must file a tax return for the entire year.

If you filed a declaration in 2024, do you need to file a declaration  this year?

Yes, if you filed a declaration in 2024 for the reporting year 2023,  you must file a declaration this year as well, even if you did not  work in 2024 or are not a declarant for all other reasons.

If you do not have RA citizenship or only have RA resident status,  but you live and work in Armenia, do you need to file a declaration?

No, only citizens of the Republic of Armenia who permanently reside  in the territory of the Republic of Armenia are required to file a  declaration.

How to find out whether you are a resident of the Republic of Armenia  or not ?

Residents of the Republic of Armenia are persons who spent 183 days  or more in Armenia during the tax year or whose vital interests  (home, family, property and business) are in Armenia, as well as an  individual in the civil service of the Republic of Armenia who is  temporarily working outside the territory of the Republic of Armenia.

According to the meaning of tax legislation, the center of vital  interests is considered to be the place where the family or economic  interests of a person are concentrated. In particular, it is  considered that the center of vital interests of an individual is  located in the Republic of Armenia if there is a house or apartment  (where his family lives) and his (his family's) personal or main  family property or the main place of implementation of his economic  (professional) activity.

Do I need to file a declaration if I am a citizen of the Republic of  Armenia but work and live abroad?

If you are a citizen of the Republic of Armenia but work and live  abroad, you only need to file a declaration if you are also  considered a resident of the Republic of Armenia. (See Question 5:  How to know whether you are a resident of the Republic of Armenia or  not).

If you were employed (even for a few months) in 2024 but are abroad  in 2025, will you need to file a declaration?

Even if you worked for only a few months in 2024 but are abroad in  2025, you will need to file a declaration if you are also considered  a resident of the Republic of Armenia. (See Question 5: How to know  whether you are a resident of the Republic of Armenia or not).

Do minors have to file a declaration?

No, citizens of the Republic of Armenia who are residents of the  Republic of Armenia and are considered minors as of December 31, as  well as their parents, guardians or trustees on their behalf are not  required to file a declaration. A parent, guardian or trustee shall  file a declaration on behalf of a minor only if the minor rented out  an apartment or performed other independent professional work.

If you did not work during 2024, but transfers were received to your  bank account, card, including from abroad, do you need to file a  declaration?

No, if you did not work during 2024 and are not a declarant in  accordance with other provisions of the law, but transfers were  received to your bank card or account, both within Armenia and from  abroad, then you are not required to file a declaration. declaration  2025.

Do you need to file a declaration if you live in Armenia but work for  a company abroad?

Yes, if you are a citizen-resident of the Republic of Armenia but  work from Armenia for a company located abroad, i.e. you receive a  salary from abroad, then you must file a declaration. Moreover, this  income will not be taxed in Armenia if you have already received a  taxable salary from a country where the income tax is 20% or more.  And if the income tax in this country is lower than 20%, you will  have to pay the difference in Armenia. For example, if the income tax  rate in the country where you received your salary is 18%, then you  must pay the remaining 2% in Armenia.

Will citizens forcibly displaced from Nagorno-Karabakh have to file a  declaration?

If you are a citizen of Nagorno-Karabakh who was internally displaced  and worked during 2024, but do not have RA citizenship (you have a  passport with code 070), then you are not required to submit an  annual income tax return, since only RA citizens who are residents of  the Republic of Armenia can do this.

Is a sole proprietor required to file a declaration?

If you are registered as a sole proprietor, you are not required to  file a declaration based on your registration as a sole proprietor.  You will only need to file a declaration if in 2024 you were  simultaneously an employee, or received taxable income under a civil  law contract, or are a declarant on other grounds.

Do persons on parental leave (maternity leave) need to file a  declaration?

Yes, if you are on parental leave, you must also file an annual  income declaration, since you are considered an employee.

Do pensioners have to file a tax return?

No, pensioners are not required to file a tax return, unless the  pensioner was also an employee or received taxable income under a  civil contract during 2024, or is a declarant for other reasons.

If your only income is a benefit, disability pension, or military  pension, do you have to file a tax return?

No, if your only income in 2024 was a benefit, disability pension, or  military pension, then you do not have to file a tax return in 2025,  unless you were also an employee or received taxable income under a  civil contract in 2024, or you are a declarant for other reasons.

If you are engaged in independent professional activity  (self-employment, freelancing), do you need to file a declaration?

Yes, if you were engaged in independent professional activity during  2024 and received taxable income, you must file an income tax return  this year. In the case of a minor, the calculation (declaration) is  made for him by a parent, guardian or trustee.

If you received a grant or scholarship in 2024, are you obliged to  file a declaration?

No, if you received a scholarship or grant during 2024, you are not  required to file a declaration, unless at the same time during 2024  you were also an employee or received taxable income under a civil  law contract or are considered a declarant on other specified grounds  (If you are considered a declarant on the grounds established by law,  you are required to include information about this income, which is  considered non-taxable income, in your declaration).

If you received a loan of 20 million drams or more in 2024, do you  need to file a declaration?

No, in this case, a loan, including a mortgage, is not considered a  loan and if you received a loan of 20 million drams or more during  2024, you are not required to file a declaration on this basis in  2025, unless you are a declarant on other grounds provided by law  (unless otherwise provided by law). If you are a declarant on other  grounds, you are required to include in the declaration information  on the income received, which is considered non-taxable income).

If you rented out real estate in 2024, is this a basis for filing a  declaration?

Yes, if you rented out your property during 2024, you are required to  file an annual income tax return and pay 10% income tax to the state  budget (in the case of minors - a parent, guardian or trustee).  If  you sold real estate in 2024, do you need to file a declaration?

If you sold real estate in 2024 and received income from this  transaction, you are not required to file a declaration on this basis  in 2025, unless you are a declarant on other grounds provided by law  (if you are considered a declarant on any of the following grounds:  other grounds provided by law, you must include in the declaration  the fact of sale of this property and information on income from  alienation, which is considered non-taxable income if alienated to a  person who is not a tax agent, for example, an individual).