Knowledge base / Accounting
Does a sole proprietor (IE) in Armenia need an accountant?
What the law requires
Full bookkeeping with financial statements is an obligation for organisations: LLCs, joint-stock companies and branches of foreign companies. An IE is an individual registered to do business. Your job is tax accounting: record income, file returns on time and pay tax.
So an accountant is optional. But you, not the person you hire, answer for mistakes, missed deadlines and the wrong regime.
What you can file yourself
The workload depends on your tax regime, not on the size of the business.
- Micro-business (turnover up to AMD 24 million a year). Very little reporting for the regime itself. Staff add monthly payroll returns. Usually manageable alone, as long as your activity is not excluded. See Micro-business regime in Armenia.
- Turnover tax (up to AMD 115 million in the previous year). A quarterly return, with payment within 20 days after the quarter. Without staff and with few transactions, this is doable.
- General regime with 20% VAT. Monthly VAT returns by the 20th, expense records and an annual return. Better with an accountant.
Even on a simple regime, there is more than the tax itself. You issue e-invoices to companies and other IEs, give cash-register receipts to individuals, convert foreign-currency income into drams and keep contracts, invoices and statements. All deadlines are in the tax reporting calendar.
When going it alone gets risky
- You have employees: income tax, pension contributions, monthly returns.
- You are a VAT payer: input and output VAT, zero rate on exports.
- Your turnover is close to the AMD 24 or 115 million limit.
- You import or export goods or trade within the EAEU.
- You get hundreds of small payments from individuals or via payment aggregators.
- The tax office sends a request or opens an audit.
Can a foreigner file alone?
Yes. Citizenship does not limit an IE: foreigners have the same rights and duties as Armenian citizens. In practice, three things get in the way.
- System access.
Returns are filed online only. The State Revenue Committee has a guide for foreigners: login with your TIN, username and password, and signing via CoSign for non-residents. Check early which login and signature method works for your IE returns, as setup takes time. - Language.
Forms, notices and replies from the tax office are in Armenian. - Non-obvious rules.
For example, which exchange rate to use for foreign income and when an e-invoice is needed.
A sensible approach: let an accountant file for the first few months and watch how it's done. Then file yourself and call in help for tricky cases. Pay for one consultation at registration: the right regime and activity code save more than a year of service costs. For price ranges, see Accounting cost in Armenia.
Common mistakes
- Missing the regime deadline. You have 20 days after registration; after that, only until 20 February of the next year.
- Choosing micro-business for consulting, legal or accounting services, which are excluded.
- Skipping a return for a period with no income. Check whether a nil return is required on your regime.
- Not issuing e-invoices to companies and other IEs.
- Mixing personal and business money in one account.
Note: the government plans to raise the micro-business limit to AMD 50 million from 2027, but this is not law yet.
Frequently asked questions
Is a sole proprietor in Armenia legally required to have an accountant?
No. Full bookkeeping with financial statements is an obligation for organisations such as LLCs. An IE handles tax accounting and is personally responsible for records, returns and deadlines, even if they hire someone.
Can I file my own tax returns as an IE on turnover tax in Armenia?
Usually yes, if you have no staff and few transactions. Turnover tax means a quarterly return with payment within 20 days after the quarter. The general regime with VAT is better handled with an accountant.
When should a sole proprietor in Armenia hire an accountant?
It gets risky alone if you have employees, pay VAT, are close to the AMD 24 or 115 million limit, trade goods abroad or within the EAEU, get hundreds of small payments, or face a tax office request or audit.
Can a foreigner file Armenian tax returns without an accountant?
Yes, foreigners have the same rights and duties as citizens. The hurdles are online-only filing with TIN login and CoSign signing for non-residents, Armenian-language forms, and non-obvious rules like exchange rates.
We can handle your filings
We'll choose a regime, set up your records and file for you, or teach you to do it yourself. We work in English.
Sources: Tax Code and Law "On Accounting" — arlis.am; State Revenue Committee — online access for foreign citizens, src.am; PwC — turnover tax and VAT; ARKA — on the planned micro-business limit.