IT One Percent Status in Armenia
Obtain preferential 1% taxation status for IT activities. Full support from criteria assessment to approval
from 200,000 ֏
Order Service
1%
Income tax rate
7-10
Days to obtain
100%
Success rate
What is IT One Percent Status?
IT One Percent is a preferential taxation regime in Armenia for companies engaged in high-tech activities. Instead of the standard 18-20% income tax, IT companies pay only 1% of their revenue.
Key Benefits
- 1% Income Tax: Significantly reduced tax rate on revenue
- VAT Exemption: No VAT on services (subject to criteria)
- Social Payments: Reduced rates for employee social contributions
- International Recognition: Legitimate tax optimization for international clients
- Quick Processing: Fast approval process (7-10 business days)
Eligibility Criteria
To qualify for IT 1% status, your company must meet these requirements:
- Engage in software development, IT consulting, or related tech services
- Have registered business entity in Armenia (LLC or Sole Proprietor)
- At least 30% of revenue must come from IT activities
- Meet minimum annual revenue threshold (varies by entity type)
- Maintain proper bookkeeping and accounting records
Qualifying Activities
- Software development and programming
- Web and mobile application development
- IT consulting and system integration
- Cloud services and SaaS products
- Game development
- Digital design and UX/UI services
- Quality assurance and testing
- DevOps and infrastructure management
Our Service Includes
- Initial Consultation: Assessment of your eligibility and activity structure
- Document Preparation: Gathering and preparing all required documents
- Application Submission: Filing application with tax authorities
- Follow-up: Communication with authorities during review process
- Approval: Obtaining official IT status certificate
- Bookkeeping Setup: Configuring accounting for IT regime
- Ongoing Support: Consulting on maintaining IT status compliance
Required Documents
- Company registration certificate
- Tax identification number
- Detailed description of activities
- Client contracts (samples)
- Financial statements for previous period
- Employee information (if applicable)
- Bank account details
Timeline
- Day 1-2: Initial consultation and eligibility assessment
- Day 3-5: Document collection and preparation
- Day 6-7: Application submission to tax authorities
- Day 8-17: Tax authority review (typically 7-10 business days)
- Day 18+: Status approval and bookkeeping setup
Frequently Asked Questions
Can a sole proprietor obtain IT status?
Yes, both LLCs and sole proprietors can obtain IT 1% status if they meet the eligibility criteria. The process is similar for both entity types.
Can I work with foreign clients?
Yes, IT status is particularly beneficial for working with international clients. There are no restrictions on client geography.
What if my application is rejected?
Rejections are rare with proper preparation. If rejected, we help identify the issues and resubmit the application at no additional cost (document fees excluded).
Do I need to be physically present in Armenia?
No, the entire process can be completed remotely through power of attorney. We handle all interactions with authorities on your behalf.
Ready to Get IT 1% Status?
Get a free consultation to assess your eligibility and learn about the process