LEGAL UPDATE
June 2025
PART I. PRIVATE SECTOR
1. On Adoption of the Law of the Republic of Armenia “On Crypto Assets”
2. On Making Amendments and Supplements to the Law “On Combating Money Laundering and Terrorism Financing”.
3. On Making Amendments and Supplements to the Civil Code of the Republic of Armenia.
PART II. PUBLIC SECTOR
1. On Amendments and Supplements to the Law “On State Duty”.
PART III. EDUCATION SECTOR
1. On Making Amendments and Supplements to the Law “On Education”.
2. Adoption of the Law of the Republic of Armenia on Supervisory Control in the Field of Education.
PART IV. TAX SECTOR
1. On Amendments and Supplements to the Tax Code of the Republic of Armenia
2. Legislative initiative on establishing tax incentives for non-resident corporate
income taxpayers with respect to income received from shares and bonds listed on the
stock exchange in the Republic of Armenia’s Tax Code.
3. On Amendments to the Tax Code of the Republic of Armenia.
4. On the procedures for the exchange of information regarding financial accounts with
competent authorities of foreign states (territories), the procedures for obtaining
such information by the tax authority from those competent authorities, as well as the
requirements for the protection of the transmitted information about financial accounts.
5. Decision of the Government of the Republic of Armenia No. 718-N on Establishing the Procedures
for the Exchange of Information Regarding Financial Accounts with Competent Authorities of Foreign
States (Territories), the Procedures for Obtaining Such Information by the Tax Authority from Those
Competent Authorities, and the Requirements for the Protection of the Transmitted Information Concerning
Financial Accounts..
PART I. PRIVATE SECTOR
(This section of legal updates includes legal updates related to the private sector for the month of June 2025)
1. On Adoption of the Law of the Republic of Armenia “On Crypto Assets”
Name of the legislative act
Law of the Republic of Armenia “On Crypto Assets” – HO-159-N https://www.arlis.am/hy/acts/208599
Status of the Law:
This Law was published on June 24, 2025, and entered into force on July 4, 2025.
Subject Matter of the Law:
This Law regulates activities in the crypto asset market in the Republic of Armenia. In particular, it governs the processes of public offering and trading of crypto assets, defines the types and provision procedures of services involving crypto assets, and establishes the regulatory and supervisory mechanisms of the Central Bank over this market.
Article 1․ Subject and Scope of Regulation of the Law
1. This Law regulates the relationships arising from the performance of activities in the crypto asset market in the Republic of Armenia and establishes:
1. the procedure for public offering and trading of crypto assets;
2. the types of services involving crypto assets (hereinafter also referred to as “crypto asset services”), as well as the procedures for their provision and implementation;
3. the powers and responsibilities of the Central Bank in the area of regulation and supervision of the crypto asset market;
4. liability for violations of this Law, the normative legal acts adopted on its basis, and other legal acts.
2. (…)
3. The provisions of this Law do not apply to crypto assets that qualify as securities or derivative financial instruments within the meaning of the Law “On the Securities Market”; such relationships are governed by that law.
4. The provisions of this Law do not apply to crypto assets that qualify as units or shares of a fund within the meaning of the Law “On Investment Funds”; such relationships are governed by that law.
5. The provisions of this Law do not apply to crypto assets that qualify as bank deposits or bank deposit agreements within the meaning of the Law “On Banks and Banking”; such relationships are governed by that law.
6. The provisions of this Law do not apply to crypto assets that qualify as insurance contracts or certificates within the meaning of the Law “On Insurance and Insurance Activities”; such relationships are governed by that law.
7. The provisions of this Law do not apply to the following entities if they act as issuers or providers of crypto asset services:
1. the Republic of Armenia, the Central Bank, or communities of the Republic of Armenia;
2. the International Monetary Fund, the European Central Bank, the European Investment Bank, other international organizations of which the Republic of Armenia is a member, as well as other international organizations included in a list approved by the Board of the Central Bank.
8. The provisions of this Law do not apply to crypto assets that:
1. are unique in nature (each having distinct characteristics) and are non-fungible, or
2. are technically impossible or prohibited by law or issuance terms from being transferred to another person, or
3. are issued by central banks or other national banks.
9. For the purposes of Clause 1 of Part 8 of this Article, a crypto asset is not considered unique or non-fungible if it is offered in divisible units.
10. The provision of crypto asset services is not regulated by the provisions of this Law if such services are provided:
1) solely among legal entities belonging to the same group, or
2) within the scope of activities conducted by a liquidation commission or, in the case of insolvency, by a temporary administration.
This Law consists of 8 chapters:
Chapter 1. General Provisions: This chapter defines the subject and scope of regulation of the Law, key terms and exceptions, as well as the principles and objectives of its application.
Chapter 2. Regulation of Public Offering and Trading of Crypto Assets: This chapter regulates the legal basis for public offering and trading of crypto assets, including the conditions for conducting public offerings, the rules for authorizing circulation of such assets on trading platforms, advertising requirements, types of liability, and investor protection mechanisms.
Chapter 3. Types and Regulation of Crypto Asset Services: This chapter sets out the types and formats of services involving crypto assets, establishes the legal status of persons (organizations) providing such services, licensing requirements, and specifics of their operations. It also details the requirements and regulations concerning the acquisition of significant participation, as well as the key financial standards and specific requirements applicable to crypto asset service providers.
Chapter 4. Prohibition of Market Abuse and Preventive Measures: This chapter defines the types of market abuse, mechanisms for its prohibition and prevention, and outlines the liability measures applicable to crypto asset service providers.
Chapter 5. Operational Information: This chapter regulates the processes for collecting operational information in the crypto asset market, organizing cooperation with the Central Bank, and managing information flows.
Chapter 6. Supervision and Liability: This chapter defines how oversight is carried out over compliance by crypto asset service providers with market regulation norms, and sets out the liability measures for legal violations.
Chapter 7. Other Provisions
Chapter 8. Final Provisions.
2. On Making Amendments and Supplements to the Law “On Combating Money Laundering and Terrorism Financing”
Name of the legislative act:
“On Amendments and Supplements to the Law on Combating Money Laundering and Terrorism Financing” – HO-180-N
http://www.parliament.am/legislation.php?sel=show&ID=9772&lang=arm
Change Status:
This law was adopted by the National Assembly on May 29, 2025.
Legislative act amended by the adoption of the above act:
The adoption of this law introduced amendments to the Law of the Republic of Armenia “On Combating Money Laundering and Terrorism Financing.”
What do the changes concern?
According to the legislative initiative, comprehensive regulations are introduced into the Law “On Combating Money Laundering and Terrorism Financing” concerning the monitoring of crypto asset transfers and risk management mechanisms. Specifically, crypto asset service providers are included among the reportable persons defined by the law, the transfer of crypto assets is considered a financial transaction, and financial institutions involved in the transfer process are required to collect, retain, and transmit mandatory information, as well as ensure the secure transmission of data
1. To supplement Article 3, Part 1, point 4 of the Law No. HO-80-N dated May 26, 2008, "On Combating Money Laundering and Terrorism Financing" with the following provision as point 9.2:
9.2) The transfer of a crypto asset is a transaction carried out through a financial institution on behalf of the transferor, with the intent to make a certain crypto asset or funds available to the transferee at the same or another financial institution, regardless of whether the transferor and the transferee are the same person.
2. To amend Article 6, Part 3, Clause 1 of the Law by removing the words “as well as” and, after the words “5 million drams,” adding the phrase “as well as crypto asset transactions where the amount is equal to or exceeds 1 million drams.”
Article 6. Reportable Transaction or Business Relationship
3. The report on a reportable transaction must be submitted by the following reporting persons, depending on the specific types and thresholds of transactions, which are:
Old version.
1) In the case of financial institutions: cashless transactions with an amount equal to or exceeding 20 million drams, and cash-related transactions with an amount equal to or exceeding 5 million drams.
New version.
1) In the case of financial institutions: cashless transactions with an amount equal to or exceeding 20 million drams, cash-related transactions with an amount equal to or exceeding 5 million drams, as well as crypto asset transactions with an amount equal to or exceeding 1 million drams.
3. To supplement the Law with Article 20.1 with the following content:
Article 20.1. Obligations Related to Crypto Asset Transfers
1. The financial institutions sending and receiving crypto asset transfers must obtain and retain the following information:
1. The full name or legal name of the transferor and the transferee.
2. In the case of crypto asset transfers using decentralized ledger technology, the decentralized ledger addresses and crypto asset account numbers of the transferor and the transferee, if such account numbers were used to perform the transfer.
3. In the case of crypto asset transfers not using decentralized ledger technology, the crypto asset account numbers used by the transferor and transferee to perform the transfer.
4. For the financial institution sending the crypto asset transfer: data from the identity document of the transferor; for the financial institution receiving the transfer: data from the identity document of the transferee, or the address, date, and place of birth for individuals; identification number (state registration, tax number, etc.) or registered address for legal entities.
2. In the case of crypto asset transfers, the sending financial institution must immediately and securely transmit the information specified in this article to the receiving financial institution. The transmission can be direct or indirect and does not require the information to be directly attached to the crypto asset transfer. If multiple crypto asset transfers are grouped, the sending institution may provide only the information regarding the transferor as specified in points 2 and 3 of part 1 for each individual transfer, provided the grouped transfer contains all information required under part 1.
3. All intermediary financial institutions involved in the crypto asset transfer must ensure that the information specified in this article is transmitted immediately and securely.
4. The obligations under this article do not apply to:
1. transfers and settlements conducted between financial institutions on their own behalf;
2. transactions made with credit, debit, or prepaid cards, if all messages (accompanying documents) related to the execution and recording of the transaction contain information about these card numbers. This exception does not apply if the transaction involves cash withdrawal, payment for goods or services via automated teller machines and does not apply when credit, debit, or prepaid cards are used to conduct crypto asset transfers.
5. The intermediary financial institution involved in the crypto asset transfer and the receiving financial institution must establish effective risk-based policies and procedures to identify and take appropriate measures (including rejecting or suspending the transaction) for crypto asset transfers that do not include the information required by this article. In cases where the required information is missing, the financial institution must consider terminating correspondent or similar relationships with financial institutions involved in the crypto asset transfer.
4. To supplement Article 27 of the Law with the following content as Part 4:
Article 27. Refusal or Termination of Transaction Execution or Establishment of Business Relationship
4. A financial institution conducting a crypto asset transfer must refuse any request for transfer if the information required by Article 20.1 of this Law is missing, and must consider classifying such transfers as suspicious in accordance with Article 7 of this Law.
3. On Making Amendments and Supplements to the Civil Code of the Republic of Armenia.
Name of the legislative act
“On Amendments and Supplements to the Civil Code of the Republic of Armenia” – HO-181-N http://www.parliament.am/legislation.php?sel=show&ID=9776&lang=arm
Change status:
This law was adopted by the National Assembly on June 29, 2025.
Legislative act amended by the adoption of the above act:
The adoption of this law introduced amendments to the Civil Code of the Republic of Armenia.
What do the changes concern?
The proposed amendments establish that crypto assets in the Republic of Armenia cannot be used as a means of payment, exchange, or fulfillment of obligations, except in limited cases regulated by law.
1. To amend Article 101, Part 3 of the Civil Code of the Republic of Armenia dated May 5, 1998 (hereinafter referred to as the Code) by adding the words “crypto asset service providers, investment fund managers” after the words “investment companies.”
Article 101. Transfer of a Share in the Charter Capital of a Limited Liability Company
Old version.
3. The participants of the company proportionally enjoy the preemptive right to purchase a participant’s share (or part thereof) in the company’s charter capital (except for banks, credit organizations, and investment companies), unless a different procedure for exercising this right is provided for in the company’s charter or agreed upon by its participants.
New version.
3. The participants of the company proportionally enjoy the preemptive right to purchase a participant’s share (or part thereof) in the company’s charter capital (except in cases established by the Law of the Republic of Armenia on the Bankruptcy of Banks, Credit Organizations, Investment Companies, Crypto Asset Service Providers, Investment Fund Managers, and Insurance Companies), unless a different procedure for exercising this right is provided for in the company’s charter or agreed upon by its participants.
2. To supplement Article 142 of the Code with the following content as Part 5:
Article 142. Money (Currency)
5. Payment with crypto assets within the territory of the Republic of Armenia is prohibited, except for electronic money tokens provided for by the “Law on Crypto Assets.”
3. To supplement Article 356 of the Code with the following content as Part 5:
Article 356. Currency of Monetary Obligations
5. The use of crypto assets for settlements of obligations within the territory of the Republic of Armenia is prohibited, except for electronic money tokens provided for by the “Law on Crypto Assets.”
4. To revise Article 589, Part 3 of the Code with the following wording:
Article 589. Contract of Exchange
3. It is prohibited to deliver goods (property) that are not crypto assets in exchange for crypto assets under an exchange contract. For the purposes of this paragraph, monetary funds are not considered property and are subject to regulations governing the sale and purchase of crypto assets. Any contract concluded in violation of this requirement shall be null and void.
This requirement does not restrict:
1. The use of consumer tokens by the issuer to acquire any goods or use services.
2. The use of crypto assets to acquire goods or use services if the acquirer is entitled to use such crypto assets only for goods or services offered by a group of entrepreneurs who have a contractual relationship with the issuer.
PART II. PUBLIC SECTOR
(This section of legal updates includes legal updates related to the public sector for the month of June 2025)
1. On Amendments and Supplements to the Law “On State Duty”
Name of the legislative act:
“On Amendments and Supplements to the Law on State Duty” – HO-177-N http://www.parliament.am/legislation.php?sel=show&ID=9765&lang=arm
Change Status:
This law was adopted by the National Assembly on June 29, 2025.
Legislative act amended by the adoption of the above act:
The adoption of this law introduced amendments to the Law of the Republic of Armenia “On State Duty.”
What do the changes concern?
The legislative amendments introduce new state duty rates for the activities of crypto asset service providers, their branches, and representatives. Additionally, Article 22, Part 1 of the Law is supplemented to include crypto asset service providers among the persons exempted from paying state duty in judicial proceedings.
1. To supplement Article 19 of the Law “On State Duty” HO-186 of December 27, 1997 (hereinafter referred to as the Law), under Section “5. BANKING AND FINANCIAL-CREDIT ORGANIZATIONS SECTOR” with the following new Points 5.13 to 5.15:
Article 19. State duty rates for granting licenses, permits (authorizations) for activities subject to licensing or authorization
5. BANKING AND FINANCIAL-CREDIT ORGANIZATIONS SECTOR
|
5.13. For the activity of a crypto asset service provider (branch of a foreign crypto asset service provider): |
500 times the annual base duty |
|
5.14. For the activity of each branch of a crypto asset service provider: |
200 times the annual base duty |
|
5.15. For the activity of each representative office of a crypto asset service provider (or a foreign crypto asset service provider): |
200 times the annual base duty |
2. To supplement Point 23 of Part 1 of Article 22 of the Law with the words “crypto asset service providers” after the words “investment companies.”
Article 22. State Duty Privileges in Courts
1. The following are exempt from paying state duty in courts:
Old version.
23) The temporary administrator and the liquidator – with respect to claims filed for the purpose of fulfilling their functions under the Law of the Republic of Armenia “On the Bankruptcy of Banks, Credit Organizations, Investment Companies, Investment Fund Managers, and Insurance Companies.”
New version.
23) The temporary administrator and the liquidator – with respect to claims filed for the purpose of fulfilling their functions under the Law of the Republic of Armenia “On the Bankruptcy of Banks, Credit Organizations, Investment Companies, Crypto Asset Service Providers, Investment Fund Managers, and Insurance Companies.”
PART III. EDUCATION SECTOR
(This section of legal updates includes legal updates related to the education sector for the month of June 2025)
1. On Making Amendments and Supplements to the Law “On Education”
Name of the legislative act:
On Amendments and Supplements to the Law on Education – HO-103-N https://www.irtek.am/views/act.aspx?tid=193391
Change Status:
This law was published on May 30, 2025, and came into force on June 9, 2025.
Legislative act amended by the adoption of the above act:
Amendments were made to the Law of the Republic of Armenia “On Education.”
What do the changes concern?
What do the changes concern? The changes introduce comprehensive regulations in the education sector, including establishing a certification system for educational institution heads, enabling general education schools to serve as community development centers, regulating out-of-school and cultural educational organizations, and creating mechanisms for the state guarantee of curricula, materials, and courses.
1. To supplement Point 8 of Part 1 of Article 3 of the Law “On Education” HO-297 of April 14, 1999, with the words following “union” as follows: “or a type of general education institution that, by its purpose, also functions as a community development center, providing all levels of general education (including preschool), out-of-school education, as well as, based on community needs, non-formal education (training) for adults, and cultural, technological, and sports services intended for youth.”
Old version.
8) Educational complex: a union of educational institutions implementing various educational programs.
New version.
8) Educational complex: a union of educational institutions implementing various educational programs or a type of general education institution that, by its purpose, also functions as a community development center, providing all levels of general education (including preschool) and out-of-school education, as well as, based on community needs, non-formal education (training) for adults, along with cultural, technological, and sports services intended for youth.
2. To supplement Part 1 of Article 3 of the Law with the following content as Point 28:
28) Management Authorization Certificate: a document issued to candidates for the positions of directors of preschool, general education, and vocational training institutions upon successful completion of testing organized by the authorized state body for education management.
3. To amend Points 6.4 and 6.5 of Part 1 of Article 36 of the Law as follows:
Old version.
6.4) Defines the list of positions and their descriptions for pedagogical staff of organizations and centers implementing out-of-school programs.
New version.
6.4) Defines the list of positions and their descriptions for pedagogical and administrative staff of organizations and centers implementing out-of-school programs.
Old version.
6.5) Defines the principles and methodology for financing state and community out-of-school organizations and centers through programs funded by the state budget.
New version.
6.5) Defines the financing procedure for out-of-school organizations and centers funded by the state budget.
4. To supplement Part 1 of Article 37 of the Law with the following content as Points 3.4, 3.5, 3.6, and 12.2.
Article 37. Authority of the authorized state body for education management
3.4) Approves the model curricula for music, art, fine arts, and dance schools.
3.5) Approves the procedures for admission and final examinations in music, art, fine arts, and dance schools.
3.6) Guarantees the use of state and other applicable programs (including pilot programs), teaching materials, and courses in preschool, general education, and out-of-school educational institutions.
12.2) Establishes the procedure for issuing the certificate of management authority to directors of preschool, general education, and vocational educational institutions.
5. To supplement the law with the following content as Article 40.1.
Article 40.1. Qualification Requirements for Applying for the Management Authorization Certificate of Pre-school, General Education, and Vocational Educational Institutions, and Grounds for Termination of the Certificate
1. A person may apply for a management authorization certificate for pre-school, general education, and vocational educational institutions if they have a higher education degree and at least five years of work experience in pedagogical or scientific-pedagogical activities or management within the last 10 years, or at least three years of work experience in educational management.
2. The management authorization certificate shall be revoked in the following cases:
1) If false information is discovered in the documents submitted by the certificate holder to obtain the certificate.
2) If the certificate holder commits acts incompatible with educational and upbringing functions.
3) If the certificate holder causes financial or property damage to the state in the amount specified in Article 16, Part 3(e) of the Law on State Non-Commercial Organizations during their tenure.
4) If the certificate holder is declared legally incapacitated or partially incapacitated by a court decision.
5) If the certificate holder is deprived by court ruling of the right to engage in pedagogical or administrative activities.
6) If the certificate holder suffers from an illness that may hinder the performance of pedagogical or administrative activities.
7) If the certificate holder is convicted of a crime and the conviction has not been duly expunged or erased, except when the person was convicted for an unintentional crime.
2. Adoption of the Law of the Republic of Armenia on Supervisory Control in the Field of Education.
Name of the legislative act:
Law of the Republic of Armenia on Supervisory Control in the Field of Education, HO-107-N https://www.irtek.am/views/act.aspx?aid=159317
Status of the law:
This law was published on May 30, 2025, and entered into force on June 9, 2025
What do the changes concern?
This law regulates the relations and processes in the fields of general education (including preschool, primary, basic, and secondary education), extracurricular and vocational education (hereinafter referred to as the field of education), and higher education in the Republic of Armenia. It also governs the organization and implementation of supervisory control over compliance with the requirements established by the legislation regulating these fields, as well as other related legal relations.This law regulates the relations and processes in the fields of general education (including preschool, primary, basic, and secondary education), extracurricular and vocational education (hereinafter referred to as the field of education), and higher education in the Republic of Armenia. It also governs the organization and implementation of supervisory control over compliance with the requirements established by the legislation regulating these fields, as well as other related legal relations.
This law consists of 4 chapters:
- Chapter 1 – General Provisions
- Chapter 2 – This chapter is dedicated to the procedure for implementing supervisory control in the field of education, including the powers of the supervisory body, forms of control (inspection, supervision, observation), procedures, and the rules for preparing and notifying relevant documents.
- Chapter 3 – This chapter regulates the rights, duties, and responsibilities of the employees of the supervisory body and officials of the controlled entities, ensuring the legality and effectiveness of the supervision.
- Chapter 4 – Final and Transitional Provisions
PART IV. TAX SECTOR
(This section of legal updates includes legal updates related to the tax sector for the month of June 2025)
1. On Amendments and Supplements to the Tax Code of the Republic of Armenia
Name of the legislative act:
On Amendments and Supplements to the Tax Code of the Republic of Armenia http://www.parliament.am/legislation.php?sel=show&ID=9790&lang=arm
Change status:
This law was adopted by the National Assembly of the Republic of Armenia on May 29, 2025.
Legislative act amended by the adoption of the above act:
Amendments were made to the Tax Code of the Republic of Armenia.
What the changes are about:
The changes introduce comprehensive regulations to the Tax Code aimed at establishing a tax regulation framework for crypto assets. They define crypto assets, set rules for the taxation of transactions involving such assets, and establish procedures for tax accounting and reporting related to crypto asset activities.
1. To supplement the Tax Code of the Republic of Armenia of October 4, 2016 (hereinafter referred to as the Code) with Article 16.1 having the following content:
Article 16.1. Rules for Determining the Initial Value of a Crypto Asset
1. The initial value of a crypto asset shall be determined as of the date of acquisition or receipt (including gratuitous receipt) of the crypto asset, based on the price of the crypto asset published in U.S. dollars or euros on that date by an exchange included in the list defined by the Government, as determined in accordance with the procedure established by the Government, and using the average exchange rate formed in foreign exchange markets and published by the Central Bank of the Republic of Armenia on that date.
2. For the purposes of this Article, the average exchange rate formed in foreign exchange markets and published by the Central Bank of the Republic of Armenia on the relevant date shall be deemed to be the average exchange rate published by the Central Bank of the Republic of Armenia by 16:00 of that day.
2. To supplement Part 1 of Article 113 of the Code with point 11 having the following content:
Article 113. Limitations on deductions from gross income for the purpose of determining the tax base
1. When determining the tax base of a resident corporate income taxpayer and a non-resident corporate income taxpayer conducting activities in the Republic of Armenia through a permanent establishment, the following shall not be deducted from the gross income:
11) In the case of a transaction involving the disposal of a crypto asset, the portion of the initial value of the crypto asset that exceeds the amount of income accounted for in consideration of the disposal transaction of the crypto asset.
3. In Part 1 of Article 147 of the Code, after the words "income from disposal," add the following:"as well as income from the disposal of crypto assets that are considered unique in nature (each possessing distinctive characteristics) and non-fungible as defined in point 16.1 of this part, and income from the disposal of crypto assets created automatically as rewards in the course of activities related to maintaining decentralized ledgers or validating transactions."
1. For the purpose of determining the tax base, deductible income shall be considered as:
Old version.
6) Income received by individual entrepreneurs and individuals who are not notaries from the disposal of property owned by them. For the purposes of this point, deductible income shall not include income received by an individual deemed a developer of a multi-apartment (including multifunctional) building or a subdivided building, as defined in point 1 of part 1 of Article 145 of the Code, from the disposal of the building, its apartments, structures (including unfinished or semi-constructed ones), or other premises (excluding non-residential premises that are not common shared property) to an individual entrepreneur or an individual who is not a notary.
New version.
6) Income received by individual entrepreneurs and individuals who are not notaries from the disposal of property owned by them. For the purposes of this point, deductible income shall not include income derived from the disposal by a physical person deemed to be a developer of a multi-apartment (including multifunctional) building or a subdivided building, as defined in point 1 of part 1 of Article 145 of the Code, of the building, its apartments, structures (including unfinished or semi-constructed ones), or other premises (excluding non-residential premises that are not common shared property), to an individual entrepreneur or an individual who is not a notary, as well as income derived from the disposal of crypto assets characterized as unique in nature (each possessing distinctive features) and non-fungible, as defined in point 16.1 of this part, and income derived from the disposal of crypto assets automatically created as rewards in the course of activities related to the maintenance of decentralized ledgers or the validation of transactions.
2) To supplement with point 16.1 with the following content:
16.1) Income derived from the disposal of crypto assets, except for crypto assets considered unique in nature (each possessing distinctive characteristics) and non-fungible, as well as income derived from the disposal of crypto assets created automatically as rewards in the course of activities related to the maintenance of decentralized ledgers or the validation of transactions.
In Article 150 of the Code, amend Part 9 by replacing “Part 11” with “Parts 9.1 and 11” and supplement with new Part 9.1 with the following content:
Article 150. Income Tax Rates
9.1. Income tax on income derived from the disposal of crypto assets that are considered unique in nature (each possessing distinctive characteristics) and non-fungible, as well as income from the disposal of crypto assets automatically created as rewards in the course of activities related to maintaining decentralized ledgers or validating transactions, shall be calculated at a tax rate of one percent (1%).
5. In Article 254, Part 3, Point 3, and Article 267, Part 5, Point 1 of the Code, after the words “insurance brokers,” insert the phrase: “persons providing services with crypto assets as defined by the Law on Crypto Assets.”
Article 254. Turnover Taxpayers
3. The following shall not be considered turnover taxpayers:
3) banks, credit organizations, insurance companies, insurance agents, insurance brokers, persons providing services with crypto assets as defined by the Law on Crypto Assets, investment companies, specialized participants of the securities market, pawnshops, entities engaged in foreign currency exchange activities, investment funds, fund managers, payment and settlement organizations, operators of casinos, gambling games, totalizators and internet totalizators, organizations conducting lottery activities, notaries, audit firms, and providers of legal services.
Article 267. Subjects of Micro-Entrepreneurship
5. The following shall not be considered subjects of micro-entrepreneurship:
1) Banks, credit organizations, insurance companies, insurance agents, insurance brokers, persons providing services with crypto assets as defined by the Law on Crypto Assets, investment companies, specialized participants of the securities market, pawnshops, entities engaged in foreign currency exchange activities, investment funds, fund managers, payment and settlement organizations, notaries, organizers of casinos, gambling games, or lottery activities, organizers of saunas, bathhouses, and steam baths, audit firms, and organizations and individual entrepreneurs engaged in commercial (purchase and sale) activities.
2. Legislative initiative on establishing tax incentives for non-resident corporate income taxpayers with respect to income received from shares and bonds listed on the stock exchange in the Republic of Armenia’s Tax Code.
Name of the legislative act:
On Amendments to the Tax Code of the Republic of Armenia and on Amendments to the Law “On Amendments and Supplements to the Tax Code of the Republic of Armenia” https://www.irtek.am/views/act.aspx?aid=159419
Change Status:
This law was adopted by the National Assembly on May 29, 2025. Official publication date: June 23, 2025.
Legislative act amended by the adoption of the above act:
Amendments were made to the Tax Code of the Republic of Armenia.
What do the changes concern?
The changes introduce comprehensive regulations to the Tax Code aimed at establishing a tax regulatory framework for crypto assets. They define crypto assets, set rules for the taxation of transactions involving such assets, and establish procedures for tax accounting and reporting related to crypto asset activities.
1. To amend Part 5.1 of Article 126 of the Tax Code of the Republic of Armenia dated October 4, 2016 (hereinafter referred to as the Code) to read as follows:
Article 126. Exemption from profit tax payment
5.1. Non-resident corporate income taxpayers shall be exempt from profit tax payment on:
1. Dividends received from shares listed (permitted for trading) on a regulated market operating in the Republic of Armenia from March 1, 2020, until December 31, 2027, inclusive.
2. Income derived from the disposal, exchange for other securities, or similar transactions involving shares listed (permitted for trading) on a regulated market operating in the Republic of Armenia until December 31, 2027, inclusive.
3. Interest income or income received in the form of a discount upon redemption from bonds listed (permitted for trading) on a regulated market operating in the Republic of Armenia until December 31, 2024, inclusive.
4. Interest income or income received in the form of a discount upon redemption from bonds listed (permitted for trading) on a regulated market operating in the Republic of Armenia from January 1, 2025, until December 31, 2027, inclusive.
5. Income derived from disposal, exchange for other securities, or similar transactions involving bonds listed (permitted for trading) on a regulated market operating in the Republic of Armenia until December 31, 2024, inclusive.
6. Income derived from disposal, exchange for other securities, or similar transactions involving bonds listed (permitted for trading) on a regulated market operating in the Republic of Armenia from January 1, 2025, until December 31, 2027, inclusive.
7. Income from loans granted by a resident legal entity from March 1, 2020, until December 31, 2027, inclusive, for the relevant reporting periods, provided that the loan has been fully financed by the placement of bonds issued on arm’s length terms, serving as collateral for such bonds, and that such bonds are permitted for trading on a regulated market operating in the Republic of Armenia.
2. To amend point 4 of part 1 of Article 149 of the Code to read as follows:
Article 149. Income derived from securities
1. Unless otherwise provided in this Article, for the purpose of determining the tax base, deductible income shall also include:
4) Dividends received from shares listed (permitted for trading) on a regulated market operating in the Republic of Armenia from March 1, 2020, until December 31, 2027, inclusive."
Old version.
4) Income derived from shares, bonds, or other securities evidencing investment listed on a stock exchange operating in the Republic of Armenia, excluding bonds issued by banks the term of which from placement to maturity is less than two years.
New version.
4) Dividends received from shares listed (permitted for trading) on a regulated market operating in the Republic of Armenia until December 31, 2027, inclusive, for the period from March 1, 2020, until December 31, 2027, inclusive.
3. To supplement Part 1 of Article 149 of the Code with the following points 5 and 6:
5. Interest income or income received in the form of a discount upon redemption from bonds listed (permitted for trading) on a regulated market operating in the Republic of Armenia until December 31, 2024, inclusive, excluding bonds issued by banks with a term from placement to maturity of less than two years.
6. Interest income or income received in the form of a discount upon redemption from bonds listed (permitted for trading) on a regulated market operating in the Republic of Armenia from January 1, 2025, until December 31, 2027, inclusive, excluding bonds issued by banks with a term from placement to maturity of less than two years..
4. In Part 2, Point 4 of Article 149 of the Code, replace the words "listed on the stock exchange" with "listed (permitted for trading) on the stock exchange (regulated market)".
2. For the purpose of determining the tax base, income defined in Part 1 of this Article shall not be considered deductible income (shall not be deducted from gross income) if:
Old version.
4) received as dividends, except for dividends received from shares listed on a stock exchange operating in the Republic of Armenia.
New version.
4) received as dividends, except for dividends received from shares listed (permitted for trading) on a stock exchange (regulated market) operating in the Republic of Armenia.
3. On Amendments to the Tax Code of the Republic of Armenia
Name of the legislative act :
On Amendments to the Tax Code of the Republic of Armenia, HO-117-N https://www.irtek.am/views/act.aspx?tid=193495
Change status :
This law was published on June 2, 2025, and came into force on June 12, 2025.
Legislative act amended by the adoption of the above act:
Amendments were made to the Tax Code of the Republic of Armenia.
What do the changes concern?
The legislative amendments clarify the taxation procedure of interest payable under convertible loan agreements. Specifically, it is established that, in the case of conversion of such loans into shares or equity interests, the interest payable under these agreements shall be deemed paid at the moment of conversion. The amendments also regulate cases where such conversions by individuals occur over different periods, specifying the timing at which the respective interest amounts should be recognized as paid for tax purposes.
1. To supplement Part 3 of Article 109 of the Tax Code of the Republic of Armenia dated October 4, 2016 (hereinafter referred to as the Code) with the following point 6:
Article 109. Specifics of Accounting for Certain Types of Income
3. Within the scope of the accrual accounting method defined in Part 1 of Article 15 of the Code, the right to receive income shall be deemed acquired if the relevant amount is unconditionally payable (compensable) to the profit taxpayer (excluding a non-resident profit taxpayer operating in the Republic of Armenia without a permanent establishment), or if the profit taxpayer (excluding a non-resident profit taxpayer operating in the Republic of Armenia without a permanent establishment) has fulfilled obligations arising from a transaction or contract, even if the moment of satisfaction of that right is deferred or payments are made in installments. In particular:
6) Interest payable under a convertible loan agreement shall be deemed paid at the moment of conversion into shares or equity interest.
2. In point 2 of Part 1 of Article 142 of the Code, after the word “method,” insert the following: “whereby interest payable under a convertible loan agreement shall be deemed paid at the moment of its conversion into shares or equity interest.”
Article 142. Methods for Accounting the Object of Taxation under Income Tax
Old version.
2) in the case of passive income — by the cash accounting method.
New version.
2) in the case of passive income — by the cash accounting method, whereby interest payable under a convertible loan agreement shall be deemed paid at the moment of conversion into shares or equity interest.
3. To supplement Article 150 of the Code with Part 14.2, reading as follows:
Article 150. Income Tax Rates
14.2. For the purposes of applying Parts 14 and 14.1 of this Article, if interest payable under a convertible loan agreement of an individual entrepreneur or a natural person who is not a notary is converted into shares or equity interests within 12 months following the tax year in which the right to receive such interest is acquired, such interest shall be deemed paid at the moment of conversion; whereas if such interest is converted after the expiry of the 12 months following the tax year in which the right to receive the interest is acquired, the interest shall be deemed paid by the end of the 12-month period following the tax year of acquisition of the right to receive such interest.
4. On the procedures for the exchange of information regarding financial accounts with competent authorities of foreign states (territories), the procedures for obtaining such information by the tax authority from those competent authorities, as well as the requirements for the protection of the transmitted information about financial accounts.
Name of the Legislative Act:
Decision of the Government of the Republic of Armenia No. 718-N on Establishing the Procedures for the Exchange of Information Regarding Financial Accounts with Competent Authorities of Foreign States (Territories), the Procedures for Obtaining Such Information by the Tax Authority from Those Competent Authorities, and the Requirements for the Protection of the Transmitted Information Concerning Financial Accounts https://www.irtek.am/views/act.aspx?aid=129663
Change Status:
The decision was published on June 6, 2025, and came into force on June 16, 2025.
Legislative act amended by the adoption of the above act:
Amendments were made to the Tax Code of the Republic of Armenia.
What do the changes concern?
This decision concerns the procedures for exchanging information on financial accounts with the competent tax authorities of foreign states (or territories), as well as the procedures for obtaining such information from those authorities and the requirements for safeguarding the transmitted data. Specifically, the decision establishes the procedures by which the tax authority of the Republic of Armenia is obligated to perform the automatic exchange of information regarding financial accounts within the framework of international agreements.
Based on Part 3 of Article 443.5 of the Tax Code of the Republic of Armenia, the Government of the Republic of Armenia decides:
- To establish the procedure for transmitting information on financial accounts to competent authorities of foreign states (territories) in accordance with Annex No. 1;
- To establish the procedure for obtaining information on financial accounts from competent authorities of foreign states (territories) by the tax authority in accordance with Annex No. 2;
- To establish the requirements for the protection of transmitted information on financial accounts in accordance with Annex No. 3.