Armenian government approves support for IT companies in three areas
YEREVAN, April 17. /ARКА/. At a meeting on Thursday, the Armenian government approved support for IT companies in three areas.
Minister of High-Tech Industry of Armenia Mkhitar Hayrapetyan named three areas in which the government will provide support to companies that carry out at least 90% of their activities in the information technology sector.
According to him, companies that attract labor migrants to the production process will be able to count on a 60% income tax refund.
"From January 1, 2026, in the case of attracting new employees, companies will also receive a 60% income tax refund, and in the case of retraining personnel, a 50% income tax refund for three months," Hayrapetyan said.
"From April 21 to May 20, company executives will be able to apply for state support through a special platform. Then they will receive support for the first three months," Hayrapetyan said.
He said that all IT companies can apply for support. The benefits apply to migrants who have moved to Armenia since 2022.
As a justification, Hayrapetyan noted that digitalization of Armenia has no alternative for its economic development.
He recalled that for the first time last year, the turnover of the sector exceeded 1 trillion drams. This means that the sector is growing at a rapid pace. In all likelihood, the technological component of the economy will exceed 7% of GDP.
"The number of 55 thousand engineers working today should be doubled at least twice to serve the needs of the economy. Support in the matter of income tax is an investment of the state," Hayrapetyan said.
In December 2024, the Armenian Parliament adopted amendments to the law "On state assistance to the high-tech sector" and a number of related laws.
The changes provide for long-term tax benefits for IT companies for 7 years - from January 1, 2025 to January 1, 2032 with the possibility of extension (previously, in the last few years, tax benefits were established for 1 year, after which they were extended - ed.).
According to the new assistance package, the turnover tax rate for IT companies is reduced from the current 5% to 2%. This clause applies to companies and individual entrepreneurs with an annual turnover of less than 120 million drams. -0-