The Armenian government has introduced new incentives for IT companies. Legal entities and individual entrepreneurs that will employ more than 50 employees previously not employed in Armenia will receive 50% reimbursement of the income tax paid.
The initiative intends to develop IT, as well as the creation of a suitable competitive environment in Armenia.
It aims to encourage the recruitment of highly qualified employees. The idea was to draw a significant number of freelancers out of the shadows.
State support is provided to commercial organizations and individual entrepreneurs, which meet the following conditions:
- 90 percent or more of income from activities (sales turnover) are from software development, IT consulting and other related activities;
- In the absence of revenue (sales turnover), 90 percent or more of the entire number of employees should be IT professionals;
- The number of employees should increase by at least 50;
- Newly hired employees from September 2021 to March 2022 shall not be registered employees (including service provisions under the service contract) in Armenia;
- Beneficiaries should not have tax obligations exceeding 100,000 AMD.