Declaration of income in Armenia: a complete guide to all issues - part 2
YEREVAN, January 22. /ARKA/. The State Revenue Committee of Armenia continues to publish answers to frequently asked questions regarding who must file an income tax return in 2025 for the 2024 reporting year.
By order of the head of the State Revenue Committee, a threshold of 300,000 drams has been set for deductible income, and income below this threshold does not need to be declared by the taxpayer.
1. Is the income declared in the declaration subject to taxation?
Not all income declared in the declaration is subject to taxation. For example, if you are a declarant who must file an income declaration in 2025 and, in addition to your salary, have additional income, such as transfers to your bank account or card from a family member, or transfers from abroad presented as a gift in the declaration, you will not have any tax liabilities.
2. Is your real estate and movable property subject to declaration?
No, real estate and movable property are not subject to declaration. Only income received during the reporting year (2024) must be included in the annual income declaration.
3. Are your expenses subject to declaration?
No, expenses are not subject to declaration. Only income received during the reporting year (2024) needs to be declared.
4. Do I need to declare the amounts transferred to my bank account or card?
The annual income tax return includes the income received by an individual during the reporting year. Therefore, if the amounts transferred to your bank account or card are considered income, they must be entered in the relevant sections of the return. It is important to note that non-taxable income received as a gift, gratuitously, in the form of a loan, or as one-time income from the sale of property may not be included in the return if it does not exceed 300,000 drams. That is, if transfers to your bank account or card were made as a gift during 2024, this must be reflected in the return, but such income is NOT subject to taxation.
5. Should I include transfers between my own accounts in the return?
No, transfers between your own accounts, cards, or from an account to a card and vice versa are NOT considered income and are NOT included in the income tax return.
6. If you transferred an amount from a payment terminal to your account or card, do you need to include information about this in the declaration?
No, if you personally made a transfer to your account or card from a payment terminal, this is not considered income and should not be included in the declaration.
7. If the person filing the declaration is also an individual entrepreneur (IE), should the income of the IE also be indicated in the declaration?
No, income from an individual entrepreneur (IE) is considered income from entrepreneurial activity and is not included in the declaration.
8. If money was transferred to you from abroad in 2024, should these amounts be included in the declaration?
The annual income tax declaration includes income received by an individual during the reporting year. Therefore, if the amounts transferred to you from abroad are considered income, they must be entered in the relevant sections of the declaration. It should be noted that non-taxable income received as a gift, gratuitously, in the form of a loan, or as one-time income from the sale of property may not need to be included in the declaration if it does not exceed 300,000 drams. That is, if during 2024 transfers were made to your bank account or card as a gift, information about this should also be reflected in the declaration, but this income is NOT subject to taxation.
9. If you are a citizen and resident of the Republic of Armenia and received a salary from abroad in 2024, is it necessary to declare this income?
Yes, if you are a citizen and resident of the Republic of Armenia but work for a company located abroad and receive a salary from abroad, you are obligated to include this income in your declaration. However, this income will not be taxed in Armenia if you have already paid taxable salary tax in a country where the income tax rate is 20% or more. If the income tax in that country is lower than 20%, you will need to pay the difference in Armenia.
10. Should income received from abroad, which has already been taxed in the country of origin, be taxed again in Armenia?
If this income was taxed abroad, you will pay the difference in Armenia between the 20% tax rate and the tax paid abroad on this income.
11. If a resident and citizen of the Republic of Armenia received income from an individual located abroad for any services, should this income be included in the declaration?
Yes, income received from another individual in exchange for services is included in the declaration, regardless of whether you received this income in Armenia or from abroad, and it is subject to income tax at a rate of 20%.
12. Is a co-borrower required to declare the received loan together with the borrower?
No, the co-borrower does not need to include information about the loan received in 2024 in the declaration.
13. Are income from deposits, debt securities (bonds), securities, and shares subject to declaration?
Yes, if in 2024 you received income from deposits, debt securities (bonds), securities, or shares, you must include this information in your declaration.
14. If you rented out your property in 2024, should you include the income from it in your tax return?
Yes, if you rented out your property to another individual in 2024, you are required to file an annual income tax return and pay 10% income tax to the state budget (for minors, the parent or guardian must do so). If you are not the declarant for any reason, you should only include the rental income and income tax information.
15. If you sold real estate in 2024, do you need to include this income in your tax return?
Yes, if you sold real estate to another individual in 2024, you are required to include information about the income from the sale of this property, which is considered non-taxable income, in your return.
16. Should donations be included in the return?
If you received real estate, movable property, or cash as a gift from another individual in 2024, this income must be declared, but it is NOT taxable. It should be noted that non-taxable income received as a one-time gift may not need to be included in the declaration if it is less than 300,000 drams.
17. Do I need to declare cash gifts received for various reasons?
Yes, if you received cash gifts from individuals for various reasons during 2024, you must include information about these amounts in your declaration. However, this income is NOT subject to taxation. It is important to note that non-taxable income received as a one-time gift can be excluded from the declaration if it is less than 300,000 drams.
18. If you lent money to someone, is the returned amount subject to declaration?
No, the amount of the repaid debt is not considered income and is not subject to declaration.
19. Are savings subject to declaration?
No, savings from income received in different years are not subject to declaration (savings are not considered income for the current year).
20. If a citizen of the Armenia received income for a service during 2024, should they declare this income?
Yes, if you received income for any services in 2024, this income, which is subject to taxation, must also be included in the declaration.
21. Should benefits, pensions, scholarships, etc. be included in the declaration?
Yes, if you received benefits, pensions, disability or military pensions, scholarships, etc. during 2024, information about this income must be included in the declaration, but this income is NOT subject to taxation.
22. Do I need to declare one-time and monthly child care benefits, as well as alimony?
If you received a one-time or monthly child care benefit in 2024, the parent receiving this amount, if they are the declarant, must include this income in the tax return, but this income is NOT taxable.
23. Should income from winnings be included in the tax return and are they taxable?
Yes, if you had income from winnings in 2024, you must include them in the tax return. Winnings from casinos, betting, and lotteries are NOT taxable.
24. Do I need to declare travel expense reimbursement amounts?
Yes, if you were reimbursed for travel expenses in 2024, you must include information about this income in your tax return. This income is not taxable. It should be noted that reimbursement amounts for travel expenses should be included in the declaration if they exceed 3 million drams per year. Travel expense reimbursements that do not exceed 3 million drams may not need to be declared.
