The law aims to develop the entire economy through high-tech. The National Assembly has adopted a bill aimed at fostering growth in the high-tech sector.

On December 4, the National Assembly adopted, in the second reading and in full, the package of bills titled “On State Support for the High-Tech Sector” and “On Amendments and Addenda to the Tax Code of the Republic of Armenia.”

The bills were supported by 89 MPs, with none voting against and five abstaining. The revised package was presented in the second reading on December 3 by the Minister of High-Tech Industry of the Republic of Armenia, Mkhitar Hayrapetyan.

The Minister noted that, following the first reading, the Ministry received several proposals from MPs and partners in the technological community. A significant portion of these suggestions were adopted and incorporated into the package. One notable amendment was the removal of the requirement to maintain a quarterly average of 30-31 employees in the draft law “On State Support for the High-Tech Sector” to better differentiate and regulate company sizes.

"This means that, once adopted, the law will not distinguish between small and large companies. The separate regimes initially proposed for these categories will no longer apply, and instead, a flat approach will be implemented. All proposed regulations and tools should be viewed through this lens," Hayrapetyan explained.
Elaborating on the proposed amendments, the Minister stated:

"Economic entities engaged in government-classified activities eligible for state support are proposed to receive 60 percent of the income tax calculated on salaries and equivalent payments or remuneration under civil law contracts. This support will apply quarterly for the recruitment of labor migrants and new employees. Notably, from January 1, 2025, to December 31, 2025, this support will target technology companies hiring labor migrants. From January 1, 2026, the same support will extend to all hired labor migrants."
For companies training personnel in professional roles, the draft proposes quarterly support amounting to 50 percent of the income tax calculated on salaries and equivalent payments.

The revised package also redefined the concept of a “new employee” by removing the age threshold.

Changes were also made to the draft law “On Amendments and Addenda to the Tax Code of the Republic of Armenia.” Specifically, the restriction on tax-deductible expenses for acquisitions from turnover taxpayers will apply only to acquisitions related to high-tech activities.

An amendment to Article 6 stipulates that, for companies conducting both R&D and scientific research, the 200 percent salary deduction cannot exceed 50 percent of the calculated profit tax base. However, this 50 percent cap does not apply to companies deriving at least 90 percent of their income from scientific research.

Additionally, the turnover tax rate is proposed to decrease from 2 percent to 1 percent.

Babken Tunyan, Deputy Chairman of the NA Standing Committee on Economic Affairs, presented a related report, highlighting the extensive consultations held with companies and experts. He emphasized that the package offers long-term predictability for the high-tech sector and enhances Armenia’s competitiveness and attractiveness.

NA Deputy Speaker Hakob Arshakyan praised the collaborative efforts of the Ministry of High-Tech Industry, the Minister of Finance, and the NA Standing Committee on Economic Affairs. He underscored the importance of supporting labor migrants, noting, "From January 1, 2026, they will receive 60 percent support on paid income taxes." Arshakyan also elaborated on provisions for supporting employees involved in scientific research and the recruitment of new personnel.
In his closing remarks, Minister Hayrapetyan highlighted the transformative potential of the new law, valued at over AMD 29 billion, for the technological sector. Written proposals on the bills were submitted by NA Deputy Speaker Hakob Arshakyan and MP Khachatur Sukiasyan.