The role of IT companies in the economy is growing rapidly both in the world and particularly in Armenia. Every developing country that wants to have a strong economy should support such companies throughout their creation and further activity because it is thanks to IT companies that economic and business processes are carried out much faster and more efficiently.
Taking into account this fact, in recent years the Republic of Armenia has also adopted such a policy to boost the investment in the IT field and support IT companies, and so for that reason the legislator has developed and introduced a set of laws, legal regulations, which give many privileges to IT companies, contribute to their creation and further activities.
The following top points of the legislation play an important role in developing the IT field and investments from all over the world.
First, according to the current legislation, until December 2022, IT companies that meet the relevant requirements set by the RA law are exempt from profit tax payments. That is, the company, summing up the annual income and expenses, will not be obliged to pay 18% profit tax on its annual profit. This is, of course, a great privilege, which can be especially important for a newly registered company.
Another important privilege is that IT employees have to pay 10% instead of 22% income tax. This benefit is also very important, as the taxes paid by the employer are significantly reduced. These regulations are designed in a way to make investors interested in inputs to the IT sector.
Tower, based on the current situation, wanting to contribute to the development of this sector in Armenia, decided to take a unique approach to IT companies, offering high-quality services with even more affordable pricing conditions. Start-ups will take advantage of this opportunity to take their first steps as they will be able to get legal, tax and accounting services in the IT field starting from the legal formation and registration of the company and valuable support in accounting and tax outsourcing throughout its operations and activities in the future.
Tower’s professionals will support in applying the state support programs for IT companies, and with their high-quality services for IT companies will consult on how to use all the tax and legal privileges the state offers to make the ongoing work as effective as possible in all the aspects of the activities. Tower itself also offers specially discounted fees to the IT sector, to encourage and support investment in this sector of Armenia’s economy.