Switching to the Simplified Tax System (STS) for Sole Proprietors in Armenia in 2025


What is STS and why is it useful?

The Simplified Tax System (STS) in Armenia allows sole proprietors to reduce their tax burden and simplify reporting. It is ideal for freelancers, small businesses, trade, services, and IT specialists.

Conditions for switching to STS in 2025

  • New entrepreneurs must apply within 20 days after registration.

  • Existing sole proprietors must apply by February 20.

  • If annual turnover exceeds 115 million AMD, you will automatically switch to the general taxation system.

  • STS cannot be used by affiliated persons.

    STS Tax Rates

    • 10% — trade and services;

    • 5% — secondary raw materials;

    • 1.5% — newspapers and publishing;

    • 7% — production;

    • 12% — catering;

    • 20% — other activities;

    • 1% — IT activity;

    • 10% — rent, interest, royalties.

      Expense deductions under STS

      • Trade: −9.5% (min 1%);

      • Production: −5% (min 3%);

      • Catering: −9% (min 3.5%);

      • Other: −6% (min 4.5%).

        Conclusion

        STS in Armenia in 2025 is one of the most favorable regimes for small and medium-sized businesses.

        👉 Contact Delta Consulting to switch to STS, optimize taxes, and manage accounting in Armenia.

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