By Angela Hassasian
The Armenian government introduced a new Universal Income Declaration System in 2022, which is being rolled out in phases between 2023 and 2025. Under this system, Armenian citizens must now declare their income, including both taxable and non-taxable income.
Previously, there was no such universal declaration system. Taxes were handled through employers, who deducted taxes from salaries and paid employees their net salary. While employers will continue to handle tax deductions as before, the new system is meant to identify unregistered income, combat tax evasion, and ensure greater transparency.
For those already legally receiving salaries and paying taxes, this is simply an extra step to declare income, with no extra tax burden.
Nonetheless, the new system has caused confusion and panic. A series of announcements by Prime Minister Nikol Pashinyan last month, including a $750 one-time transaction threshold for declaration and a deadline extension from May to November of 2025, have added to the uncertainty.
This guide breaks down everything you need to know about the new Universal Income Declaration System.
Key details at a glance:
- Submission deadline: November 1, 2025
- Who must declare?: Adult Armenian citizens who live in Armenia for 183 days or more within any 12 months
- Who is exempt?: Citizens who spend less than 183 days a year in Armenia, tourists, special residency passport holders, non-citizens, minors, and retirees whose only income is a pension or allowance
Who must declare income?
You must submit a declaration for 2024 if:
- You were an employee in 2024
- You earned taxable income under civil law contracts (e.g., freelance work, consulting)
- You held a public service position (state, community, or public office) as of December 31, 2024
- You were a shareholder, partner, or member of a company that reported gross income of $2,500,000 or more in 2023
- You were the beneficial owner of a legal entity in 2024
- You received a loan of $50,000 or more in 2024 (excluding bank credits)
- You submitted a declaration for the 2023
- Even if you did not earn any income during the reporting year, you are still obligated to file a declaration
Who is exempt?
You do not need to declare income if:
- You are a citizen who spends less than 183 days within 12 months (in 2024)
- You are a tourist or have a five or 10-year special residency passport, even if you earned an income in Armenia in 2024
- You are a non-citizen, even if in 2024 you resided and worked in Armenia
- You were a minor as of December 31, 2024
- You are a retiree whose only source of income in 2024 was an allowance, disability pension, or military pension
What Income Needs to Be Declared?
- Taxable Income
- Salary: Base salary, bonuses, overtime, holiday pay, business trip stipends, and other rewards
- Income from contract work: Payments for services or work performed under contracts
- Rental income: Income from renting out property
- Royalties: Income from intellectual property (with some exemptions)
- Winnings: Lottery, gambling, or other prize winnings
- Income from investments: Dividends, interest, or capital gains from stocks, bonds, or deposits
- Non-Taxable Income
- Personal transfers: Transfers not exceeding $750 as a one-time payment in 2024
- Repaid loans: Repayment of money you’ve lent in a one-time transfer that exceeds $750
- Gifts: Wedding gifts or other personal gifts
- One-time sales of property: Selling your house once a year is non-taxable
- Compensation for social expenses: Childcare allowances or alimony
- Income Automatically Filled in
- If your employer has already paid taxes on your behalf, this will be automatically filled in your declaration
What income does not need to be declared?
You do not need to declare the following:
- Transfers between your own accounts: Moving money between your own accounts (eg., from a foreign account to an Armenian account, or two local accounts under your name)
- Savings: Money saved in your bank account
How to file your declaration
Step 1: Obtain an electronic signature
To file your declaration, you need an electronic signature. There are three options:
- Cosign
- ID Card
- Mobile ID (mID)
You can apply for these at the territorial offices of the Migration and Citizenship Service of the RA Ministry of Internal Affairs or through “EKENG” CJSC.
Step 2: Access the online platform (in Armenian, English, or Russian)
- Visit the official website of the State Revenue Committee (SRC): www.src.am
- Go to the “Individual” section and select “Annual Declaration for Individuals”
- Click the link: https://self-portal.taxservice.am
Step 3: Submit Your Declaration
Fill out the required information and submit your declaration electronically. The system will guide you through the process.
What happens if you don’t file?
If you miss the deadline:
- You will receive an initial warning
- If you still don’t file within 30 days after the warning, you will face fines:
- $125 for shareholders/partners of companies with $2,550,000 or more gross income
- $12 for individuals
Frequently asked questions
What if I work for a foreign company?
If you are employed by a foreign company, you must still declare your income in Armenia. However, if you’ve already paid income tax in that country at a rate of 20% or more, you won’t be taxed again in Armenia. Armenia has double taxation treaties with many countries to avoid taxing the same income twice. If the tax rate in the foreign country is less than 20%, you’ll need to pay the difference in Armenia.
What if I work for a foreign company in a country that doesn’t have a tax treaty with Armenia?
If you are employed by a foreign company that does not have a so-called double taxation treaty with Armenia, you would be required to pay income tax in both countries.
Do freelancers need to declare income?
Yes, freelancers and remote workers must declare their income, even if they pay taxes in another country. The exception to this rule is if they are already filing their taxes as an Individual Entrepreneur (IE).
How is foreign currency converted?
Income earned in foreign currencies must be converted to AMD using the market exchange rate at the time of declaration.
Are sole proprietors or individual entrepreneurs required to declare income?
No, registered sole proprietors (SPs) and individual entrepreneurs (IEs) are not required to declare income received from their SP or IE activities. However, you must file a declaration if, in addition to your SP or IE activities, you were employed in 2024, earned taxable income under a civil contract, or met any other conditions outlined above requiring declaration.
Key updates on deadline extension
The initial deadline for filing income declarations was May 1, 2025. However, due to delays in issuing new ID cards (required for the declaration process), the deadline has been extended to November 1, 2025. Prime Minister Pashinyan assured that individuals who miss the deadline due to delays in obtaining ID cards will not be penalized.
While the new income declaration system may seem overwhelming at first, the process is straightforward for those already paying taxes legally. If you have questions or need help, consult the State Revenue Committee website or seek professional advice.
Check these links for Armenian-language coverage of this topic.
– Որ եկամուտներն են ենթակա հայտարարագրման. ՊԵԿ-ի պարզաբանումը
– Որ եկամուտներին է վերաբերում 300 հազար դրամ շեմը. ՊԵԿ-ի պարզաբանումը
– Ինչպես հայտարարագրել եկամուտները. պարզ ուղեցույց
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