Armenia has made a decision that directly impacts the competition for talent: for specialists engaged in research and development work, the income tax has been reduced from 20% to 10%. The preferential regime applies to employees of R&D projects and is valid for the entire duration of approved programs.
Currently, 67 companies operate in the country, conducting approximately 80 R&D projects. These projects involve about 900 researchers, engineers, and developers. The new tax rate allows for a significant increase in the "net" salary of specialists without increasing costs for employers.
The reduction in income tax is just part of a package of incentives. R&D also benefits from accelerated depreciation of equipment, expanded deductions for income tax, and exemption of certain transactions from VAT. The authorities expect that these measures will accelerate the development of high technologies, support innovative companies, and help form an economy with high added value in Armenia.
