Armenia

Ease of Doing Business in

Armenia

This page summarizes Doing Business 2015 data for Armenia. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.

Economy Overview

 
Region Europe & Central Asia
Income Category Lower middle income
Population 2,976,566
GNI Per Capita (US$) 3,790
City covered Yerevan
Doing Business 2015 Rank Doing Business 2014 Rank*** Change in Rank
45 49 down 4

Doing Business 2015 DTF** (% points) Doing Business 2014 DTF** (% points) Change in DTF** (% points)
70.60 69.31 down 1.29
Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

Paying Taxes

Info

This data shows the tax that a medium-size company must pay or withhold in a given year, as well as measures of the administrative burden in paying taxes. These measures include the number of payments an entrepreneur must make; the number of hours spent preparing, filing, and paying; and the percentage of their profits they must pay in taxes.

DB 2015 Rank 41 DB 2014 Rank*** 73 Change in Rank up32
DB 2015 DTF** (% points) 82.10 DB 2014 DTF** (% points) 74.46 Change in DTF** (% points) up7.64
Indicator Armenia Europe & Central Asia OECD

The total number of payments per year. The indicator reflects the total number of taxes and contributions paid, the method of payment, the frequency of payment, the frequency of filing and the number of agencies involved for the standardized case study company during the second year of operation.

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Payments (number per year)
10.0 20.5 11.8

The time it takes to prepare, file and pay (or withhold) the corporate income tax, value added or sales tax, and labor taxes, including payroll taxes and social contributions (in hours per year).

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Time (hours per year)
321.0 234.3 175.4

The amount of taxes on profits paid by the business as a percentage of commercial profit.

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Profit tax (%)
19.5 10.4 16.4

The amount of taxes and mandatory contributions on labor paid by the business as a percentage of commercial profits.

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Labor tax and contributions (%)
0.0 21.4 23.0

The amount of taxes and mandatory contributions paid by the business as a percentage of commercial profit that are not already included in the categories of profit or labor taxes.

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Other taxes (%)
0.8 3.1 1.9

The total tax rate measures the amount of taxes and mandatory contributions payable by the business in the second year of operation, expressed as a share of commercial profits.

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Total tax rate (% profit)
20.4 34.9 41.3
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% profit) Notes on TTR
Corporate income tax 1 online filing 121 20% taxable profit 19.55
Land Tax 2 1% cadastral value 0.51
Property tax on Building 2 0.3% cadastral value 0.29
Vehicle tax 2 varies depends on horsepower 0.02
Environmental pollution charge for vehicles 1 AMD 50 per horsepower engine of the vehicle (in horsepower) 0.01
Income tax (includes social security contributions - employees) 1 online filing 103 (i) 24.4% of monthly taxable income up to AMD 120,000; (ii) AMD 29,280 plus 26% of the monthly taxable income exceeding AMD 120,000; (iii) AMD 518,080 plus 36% of the monthly taxable income exceeding AMD 2,000,000. gross salaries 0.00
Value added tax (VAT) 1 online filing 97 20% value added, land sale 0.00 not included
Social security contributions - employees 0 paid jointly 3% - 8% gross salaries .. not included
Totals: 10.0 321.0 20.4

**The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

***Last year's rankings are adjusted. They are based on 10 topics and reflect data corrections.

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