Knowledge base / Taxes
Tax penalties for sole proprietors and LLCs in Armenia: what and how much
Main fines and interest
What it costs
- Late payment: 0.075% of the debt per day, for up to 730 days. The rate has applied since 1 January 2025, roughly 27% a year.
- Late return or declaration: according to Armenian Lawyer, 5% of the tax shown in the return for each full 15 days of delay, subject to a cap.
- Cash register: wrong product codes get a warning the first time and a fine if repeated within a year. Other cash register violations, such as not issuing a receipt, are punished more heavily.
- Unregistered employees: a fine for each person working without a registered employment contract. In June 2024 the tax authority fined 84 businesses a total of AMD 59.25 million.
Missing e-invoices and cash sales without receipts can also lead to fines and extra tax. See our e-invoicing guide and our cash register guide.
What changed in 2026
- Automatic debt reminders
Since 1 July 2026 a reminder is posted to your account on file-online.tax.am. For debts over AMD 200,000 it comes on the day the debt arises, for smaller ones after two months. The notice counts as received the next day, even if you never open it. - 7 days to pay or object
If you neither pay nor object, the authority decides to collect the debt and freeze bank funds and property up to the amount owed. An appeal does not suspend the freeze. - After 30 days, enforcement
If the debt is still unpaid 30 days after the freeze, the case goes to the Compulsory Enforcement Service, and its fees are added to the debt. - Higher criminal threshold
According to the tax authority (May 2026), large-scale evasion now means more than AMD 30 million in a year or more than 45 million over two consecutive years (previously 10 million). Especially large scale is 50 million and 75 million. - Cash registers: new rules from 2027
A law of 3 July 2026 introduces an AMD 500,000 fine for transactions without an online cash register where one is required. Most of it takes effect on 1 January 2027.
How to avoid penalties
Keep the tax reporting calendar at hand and log into your online account at least once a week: the 7-day clock now starts when the notice is posted. Pay the tax on time even if the return is still being prepared. Register an employee before their first working day. If your account is already frozen, read what to do when an account is blocked.
Common mistakes
- Never checking the online account. A debt notice counts as received even unopened.
- Leaving Armenia and forgetting about the business. Interest builds for up to 730 days, then accounts are frozen.
- Taking cash without a receipt "for friends".
- Taking on a helper "on probation" without a contract.
- Thinking a small debt does not matter. You will still get a reminder, and interest grows daily.
Frequently asked questions
What is the late payment interest on taxes in Armenia in 2026?
Interest is 0.075% of the debt for each day of delay, for up to 730 days. The rate has applied since 1 January 2025, roughly 27% a year.
What is the penalty for filing a tax return late in Armenia?
According to Armenian Lawyer, the penalty is 5% of the tax shown in the return for each full 15 days of delay, subject to a cap.
How does Armenia collect tax debts from 1 July 2026?
A reminder is posted to your account on file-online.tax.am. If you neither pay nor object within 7 days, the authority can freeze bank funds and property, and after 30 days pass the case to the enforcement service.
What is the criminal threshold for tax evasion in Armenia?
According to the tax authority (May 2026), large-scale evasion means more than AMD 30 million in a year or more than 45 million over two consecutive years. The previous threshold was AMD 10 million.
Received a debt notice or a fine?
We will check your online account, calculate the interest, prepare an objection or a corrected return and set up your filing deadlines. We work in English and Russian.
Sources: Orbitax — 0.075% interest from 2025; Armenian Lawyer — late filing penalties, new collection procedure HO-104-N; ARKA — collection from 1 July 2026, AMD 30 million threshold, fines for unregistered employees; IC Armenia — cash register fines; EY Armenia — summer 2026 changes.