YEREVAN, April 30. /ARКА/. At a meeting on Thursday, the Armenian government approved amendments to the Tax Code and the Law “On State Duty,” which provide for changes in taxation of the banking sector.
As Deputy Finance Minister Arman Poghosyan reported, a significant portion of financial transactions and functions performed by banks are exempt from VAT, and the Armenian banking sector has demonstrated high profitability in recent years amid growing economic activity.
According to him, a number of countries are using alternative regulatory mechanisms in place of VAT.
“It is proposed to introduce alternative additional tax rules in Armenia,” Poghosyan said.
He noted that they plan to find a solution that will not put pressure on banking activities and interest rates and will not lead to inflationary risks for citizens and businesses. “If capital is withdrawn from the banking sector, for example through profit distribution—that is, if a portion of the profit is paid to shareholders—this share will be taxed not at the standard rate of 5%, but at a rate of 15%,” Poghosyan said, presenting details of the government’s decision.
The Deputy Finance Minister also announced plans to encourage the listing of bank shares on international exchanges.
According to bank reports published in accordance with IFRS standards, the net profit of the Armenian banking system for 2025 amounted to 421.3 billion drams, an increase of 16.01% compared to 2024. In the first quarter of 2026, the net profit of banks amounted to 103.48 billion drams, compared to 101.18 billion drams for the same period in 2025, an increase of 2.27%. ($1 = 371.19 drams).
