One of the first steps after founding a startup is to organize proper accounting. To take advantage of tax benefits, you need to not only know the laws, but also ensure proper accounting and documentation.
Main benefits
Reduced turnover tax rate (1%)
IT startups can take advantage of the turnover tax benefit.
The accountant must monitor that at least 90% of the company’s income is generated from high-tech activities.
This requires a detailed classification of income in the accounting books.
Income tax benefit for salaries (10%)
Income of employees in newly established IT companies is taxed at a rate of 10%.
The accountant must ensure the accuracy of payroll calculations so that the benefit is not wasted.
Double accounting of salary expenses (up to 200%)
In some cases, it is allowed to calculate salary expenses at a double rate, reducing the profit tax base.
This requires accurate documentation of salaries and a special note in the accounting program.
Income tax refund for new employees
If a startup hires a new employee or attracts migrant specialists, the state can refund part of the income tax.
The accountant’s task is to correctly formulate contracts and submit tax reports to receive a refund.
Why is correct accounting important
Benefits are conditional: if accounting documentation is incorrect or incomplete, tax authorities may refuse to apply for the benefit.
Meeting deadlines: late reporting can not only result in penalties, but also deprive the benefit.
Financial planning: In the case of startups, tax relief can be directed to R&D or marketing, but this requires a preliminary forecast by an accountant.
Tax incentives for startups in Armenia create a great opportunity to minimize the financial burden. However, their full use is possible only with the help of a professional accountant: correct classification, timely submission of reports and constant monitoring of tax laws.