Armenia’s flat income tax rate will drop from 22% to 21% in 2022.

According to amendments adopted in 2019, the income tax rate will be gradually reduced to 20% by 2023.

Registered wage earners born in 1974 or after will see their mandatory social payment rates increase from 3.5% to 4.5% in 2022 if they make less than 500,000 AMD  (US$1,018) monthly. Their rate will increase to 5% in 2023.

These payments will fund the country’s newly established pension fund.

Those making more than 500,000 AMD monthly now pay a 10% pension payment that does not exceed 32,500 AMD. The 10% rate remains in 2022 and the maximum amount drops to 27,500 AMD.