Recent Legislative Changes and Government Decisions in Armenia

A number of significant legal amendments and government decisions have recently been adopted in the Republic of Armenia. These cover export regulations, taxation, education, licensing, mediation, cashless transactions, real estate taxation, and international agreements. Below is a summary of the key updates.

1. Temporary Export Restrictions and Partial Allowances

By Government Decision No. 605-N, amendments were made to Decision No. 1755-N of November 7, 2024.

•  A temporary ban is imposed on the export of certain goods from Armenia to the member states of the Eurasian Economic Union and to third countries, including:
•  Stage constructions of ferrous metals (HS code 7308 40)
•  Unused ferrous metal constructions (HS code 7308 90)
• Other ferrous metal products, except those classified under HS codes 7201, 7204, used rails under 7302, used tiles and grinding balls under 7325 and 7326, and used cast-iron radiators under 7322.
• An exception permits the export of up to 400 tons of copper, iron, and nickel alloy scrap (HS code 7404 00 990 0) and up to 3 tons of zirconium scrap (HS code 8109 39 000 0).

This decision enters into force the day after its official publication.

2. Amendments Regarding “Uncollectible Loans”

By Government Decision No. 686-L, amendments were introduced to Decision No. 1990-L of December 14, 2024.

The changes clarify the range of potential beneficiaries and further detail the procedures for the provision of state assistance in relation to “uncollectible loans.”

3. VAT Exemptions for Research Activities

Government Decision No. 1201-N amended Decision No. 772-N of July 17, 2017, establishing updated criteria for scientific research and experimental development activities exempted from VAT.

The changes expand and clarify the criteria, providing an exhaustive and precise framework.

This decision enters into force on the first day of the month following its official publication.

4. Property Natural Loss Norms

Amendments were made to Government Decision No. 1467-N of December 13, 2018, revising Annex No. 9 on property natural loss norms for taxable base calculations.

The decision enters into force the day after publication and applies to relations arising after January 1, 2025.

5. Amendments to the “Law on State Duty” – Cultural Auctions

The National Assembly adopted, in the second reading, amendments to the “Law on State Duty” introducing new duty rates for cultural auction licenses:

•  For cultural auction houses – 1,000 times the annual base duty
•  For cultural auction organizers – 5,000 times the annual base duty

This law enters into force six months after its official publication.

6. Related Amendments to Licensing and Public Auctions

In line with the above, the National Assembly adopted amendments to the “Law on Licensing” and the “Law on Public Auctions.”

7. Amendments to the “Law on Education”

Amendments were adopted in the second reading, refining standards required for higher education institutions, qualifications awarded to graduates, and organizational-legal aspects of universities.

8. Amendments to the “Law on Mediation”

Amendments adopted in the first reading introduce the institution of co-mediation, aimed at expanding mediation practices in Armenia. This mechanism has already proven effective in several countries.

9. Amendments to the “Law on Cashless Transactions”

The National Assembly adopted, in the first reading, amendments setting exceptions to the mandatory cashless execution of transactions exceeding AMD 300,000.

Exceptions apply to:

•  Real estate services, passive income payments, and loans, if one party is a natural person.
•  Retail transactions with VAT refunds for foreign nationals.

10. Real Estate Services – Tax Amendments

Amendments to the Tax Code, adopted in the first reading, introduce new income tax provisions for real estate activities:

• AMD 5,000 for individuals
• AMD 500,000 for interoperability of real estate sales websites with the unified information system
• AMD 450,000 for real estate agencies, realtors, and property managers

11. Related Amendments – State Duty and Administrative Liability

Further amendments were adopted to the Civil Code, the “Law on State Duty,” and the Code of Administrative Offenses, including:

• Failure to register real estate service contracts in the unified information system – fine equal to 100 times the minimum wage; repeated within one year – 200 times.
• Providing real estate services without registration – fine equal to 300 times the minimum wage; repeated within one year – 500 times.

12. Cashless Payments for Alimony

Amendments to the “Law on Cashless Transactions” establish that alimony payments must be carried out exclusively in non-cash form.

13. Armenia–Japan Double Taxation Convention

The National Assembly ratified the Convention between Armenia and Japan on the Avoidance of Double Taxation and the Prevention of Tax Evasion, signed on December 26, 2024.

The Convention applies to the following taxes:

• In Armenia: Profit Tax, Income Tax
• In Japan: Income Tax, Corporate Tax, Special Reconstruction Income Tax, Local Corporate Tax, and Resident Taxes