Armenia Individual Income Tax and Pension Contribution Changes for 2023

Armenia reduced the individual income tax rate from 21% to 20% with effect from 1 January 2023. Further, employee pension contributions are as follows from 1 January 2023:

• Monthly gross salary not exceeding AMD 500,000 - 5% on gross monthly salary
• Monthly gross salary not exceeding AMD 500,000 - 10% on gross monthly salary, minus AMD 25,000

In any case, the maximum pension contributions basis is equal to 15 times the minimum monthly salary, or AMD 1,125,000 considering the increase in the …