Sectorial Brochure Agri-Food Sector of Armenia/BA - Page 8

GOVERNMENT SUPPORT Taxes £ VAT (Value Added Tax) payments’ postponement for up to 3 years for importing equipment and goods within investment programs £ 0% VAT for more than 230 product groups imported to Armenia £ Up to 30% profit tax reduction for new jobs created within business projects in the 5 reporting years following the year of launch £ Customs duty exemption for materials and equipment/technology imported from non-EAEU countries that cannot be replaced by materials and equipment/ technology produced by EAEU countries within investment programs £ There is no income tax liability for agro-processing sector entities purchasing agricultural raw materials from individuals who cultivate agricultural products There are 3 Free Economic Zones (FEZ) in Armenia: Alliance (specialized in ICT, engineering and pharmaceuticals), Meghri (on the Armenian-Iranian border with no sector limitations), and Meridian (specialized in jewelry making). Residents of FEZ are exempt from all taxes except payroll taxes. There are also on site “one stop” services and custom registrations Tax exemption in FEZ £ VAT - 0% £ Profit tax - 0% (only employees’ compensation) £ Property tax - 0% (property includes all tangible real estate property: house, o ce building and property rented to others) £ Corporation income tax - 0% (tax imposed on the net income of the company) £ Customs duty - 0% Sector-specific regulations Food processing Profit tax Impor ng du es Expor ng du es VAT 20% Depends on products /0% for EAEU/ 0% 20% Excise tax n/a Licensing requirements no Regula ve body SSFS* Produc on of beverages 20% Depends on products /0% for EAEU/ 0% 20% For the distribu on of alcoholic beverages For the distribu on of alcoholic beverages SSFS* *The State Service for Food Safety 7