Salary Tax Calculator

The Salary Calculator provides the possibility to calculate, in a simple and accessible form, the amount of salary, the amount of taxes, and the amounts of other mandatory payments.

Using the calculator, it is possible to calculate both the net salary (after tax deductions) — by indicating the amount of the gross salary, and the gross salary (before taxation) — by indicating the amount of the net salary.

Information on income tax, social contributions to the funded pension system, contributions to mandatory health insurance, as well as the stamp duty to the Servicemen’s Insurance Support Fund, is presented both in numerical and textual formats, which makes the calculations more understandable for users who do not have specialized knowledge in finance.

Income Tax

Starting from January 1, 2023, the income tax rate is 20%.

Previously, the following rates applied:

• 2022 — 21%
• 2021 — 22%
• 2020 — 23%

Thus, a gradual equalization of the tax rate took place.

At present, the income tax rate for licensed IT companies benefiting from tax incentives is 10%.

Tax Code / October 4, 2016

Amendments to the Tax Code / June 29, 2019

Mandatory Funded Pension System

Mandatory participation — Participants of the funded pension system born in 1974 or later.

Voluntary participation — Citizens born before 1974, as well as self-employed persons regardless of age.

Starting from January 1, 2023, the following rules apply.

For mandatory participants, the calculation is as follows:

The amount of the mandatory funded contribution is 10% of the individual’s salary.

• If the monthly salary is less than 500,000 AMD,
  5% is paid by the participant, and the remaining 5% is paid by the state.
• If the monthly salary exceeds 500,000 AMD but is less than fifteen times the minimum salary (75,000 AMD) — 1,125,000 AMD,
  the state pays 25,000 AMD, and the participant pays the difference between 10% of the salary and 25,000 AMD.
• If the monthly salary exceeds 1,125,000 AMD,
  the state pays 25,000 AMD, and the individual pays 87,500 AMD.

For those who voluntarily joined the funded system before July 2018, the same conditions apply as those established for mandatory participants.

For those who voluntarily joined the system starting from July 2018, the funded contribution amounts to:

• 5% of salary, if the salary does not exceed 1,125,000 AMD, and
• 56,250 AMD, if the salary exceeds this amount.

Law of the Republic of Armenia “On Funded Pensions” / June 21, 2014 (as amended)

Law of the Republic of Armenia “On Funded Pensions” — Amendments to the Law / June 25, 2019

Stamp Duty of the Servicemen’s Insurance Fund

Stamp duties to the Servicemen’s Insurance Fund are established in the following amounts:

• 1,000 AMD — if the calculation base is up to and including 1,000,000 AMD;
• 15,000 AMD — if the calculation base is 1,000,001 AMD or more.

Stamp duties are transferred to the settlement account No. 900005001186 opened with the Central Treasury.

In the “Recipient” field the following should be indicated:
“State Revenue Committee”.

In the “Purpose of Payment” field the following should be indicated:
“Servicemen’s Insurance Fund”.

ATTENTION

During the salary calculation process, within transition thresholds (200,000, 500,000 and 1,000,000 AMD) there exist ranges within which different amounts of gross salary may result in the same net salary amount.

This occurs due to the specific features of the calculation of income tax and mandatory payments.

In such cases, the salary calculator displays in the calculation results the minimum possible gross salary corresponding to the specified net salary amount.

Example: With a gross salary of 509,000 AMD and 500,000 AMD, the net salary amounts to 369,200 AMD. In such a case, during the reverse calculation, the calculator provides the minimum value — 500,000 AMD. A similar situation occurs when 1,020,000 AMD and 1,000,000 AMD are accrued, where the net salary amounts to 713,200 AMD.