How to pay a contractor in Armenia
A foreign company can hire a person in Armenia as an independent contractor: no local entity and no payroll on your side. The person registers at home and, under the turnover tax regime, pays 15.0% of a $1,000 invoice in tax.
- Agree the work and sign a contractor agreement. Scope, monthly fee, currency, notice, confidentiality and who owns the work. The person sets their own working methods and uses their own equipment, which are signs of contractor status; the full test depends on local law and on how the work is actually done.
- Check how the person is registered in Armenia. The person registers as a contractor in Armenia and invoices you.12
- Receive a monthly invoice. In USD or EUR. At the 2026-11-12 rate3 a $1,000 invoice is AMD 360,480; the person converts on their side and nothing is withheld on yours.
- Pay it. Through a contractor platform that also keeps the agreement and invoices (Remote from $29, Deel from $49 a month)45, or by bank transfer, for example Wise from 0.23% on major currencies6 (check the price of the route to AMD).
- Keep the records. The signed agreement, invoices and payment receipts; a US company also keeps the person's Form W-8BEN, which records their foreign status.
Ways to pay a contractor in Armenia
| Way to pay | Price | Per |
|---|---|---|
| Remote, Contractor Management4 | from $29 | per contractor per month |
| Remote, Contractor Management Plus4 | from $99 | per contractor per month |
| Remote, Contractor of Record4 | from $325 | per contractor per month |
| Deel, Contractors5 | from $49 | per contractor per month |
| Deel, Contractor of Record5 | from $325 | per contractor per month |
| Oyster, Global Contractors7 | from $29 | per contractor per month |
| Wise, International transfer6 | from 0.23% | of the amount sent, on major currencies; check the route to AMD |
What the contractor pays in Armenia
| Invoice a month | Micro-business (micro-entrepreneurship system) | Turnover tax regime (individual entrepreneur) |
|---|---|---|
| $500 (AMD 180,240) | $25 (5.0%) | $75 (15.0%) |
| $1,000 (AMD 360,480) | $50 (5.0%) | $150 (15.0%) |
| $1,500 (AMD 540,720) | $81 (5.4%) | $231 (15.4%) |
| $2,500 (AMD 901,200) | $181 (7.2%) | $431 (17.2%) |
Under the turnover tax regime the share that goes to tax rises above a step in the rules: 15.0% of a $500 invoice, 17.2% of $2,500. For scale, the average wage in Armenia was AMD 314,196 a month in August 2026 (about $872)8.
Roles whose activity may fall outside a regime here: bookkeepers, payroll specialists, accountants, paralegals, marketing specialists. Their pages show what changes.
Social payment of an individual entrepreneur (born on or after 1 January 1974): 5% of gross income up to AMD 6,000,000 a year; above that 10% of income minus AMD 300,00092.
The regimes, in the sources' words
- Micro-business (micro-entrepreneurship system)101112. Participants with annual turnover up to AMD 24 million are exempt from the main taxes (profit tax, VAT, turnover tax); employee income tax is still due. Vardanyan & Partners lists consulting, legal, accounting, audit, engineering, advertising, design, marketing, translation, expert examination and medical services as excluded when provided in Yerevan. The Prime Minister said on 8 May 2026 the threshold would rise to AMD 50 million; as of 27 August 2026 no Tax Code amendment had been published or registered. Recheck before 1 January 2027.
- Turnover tax regime (individual entrepreneur)12. The turnover tax replaces VAT and/or profit tax for small businesses; the income threshold is AMD 115 million for the previous year. PwC rates: trading 10%, production 7%, rental income/interest/royalties 10%, approved high-tech activities 1%, public food service 12%, other activities 10%. hartak.am still shows trading 5%, manufacturing 3.5% and public catering 6% (pre-2025 rates); PwC, reviewed 30 June 2026, is used.
- Social payment of an individual entrepreneur (born on or after 1 January 1974)92: 5% of gross income up to AMD 6,000,000 a year; above that 10% of income minus AMD 300,000.
Limits to watch
- $1,387 a month (AMD 6,000,000 a year): the social payment step (5% up to it, 10% minus AMD 300,000 above).
- $5,548 a month (AMD 24,000,000 a year): the micro-business ceiling.
- $26,585 a month (AMD 115,000,000 a year): the turnover tax ceiling.
Questions
How do I pay a contractor in Armenia?
Sign a contractor agreement, receive a monthly invoice in USD or EUR and pay it through a contractor platform or a bank transfer. The person pays tax in Armenia under Turnover tax regime (individual entrepreneur): 15.0% of a $1,000 invoice.
Do I withhold tax for an Armenian contractor?
A US company paying a non-US person for work done outside the US does not withhold US tax; it keeps Form W-8BEN on file and pays the invoice gross, and the contractor declares and pays in Armenia. Other countries' rules differ.
Not tax or legal advice: rates depend on the person’s registration and activity. Corrections: hello@silkstaff.com.
Sources
12 sources, with links
- PwC Worldwide Tax Summaries, Armenia, Corporate - Other taxes (turnover tax rates): taxsummaries.pwc.com
- Hartak: tax payments (life events): english.hartak.am
- Central Bank of Armenia, official exchange rate 2026-11-12: api.cba.am
- Remote pricing: remote.com
- Deel pricing: deel.com
- Wise Business pricing (US) (board/facts.py WISE): wise.com
- Oyster pricing: oysterhr.com
- Armstat, average monthly nominal wage, August 2026: armstat.am
- PwC Worldwide Tax Summaries, Armenia, Individual - Other taxes (funded pension, stamp duty, entrepreneurs' social payment): taxsummaries.pwc.com
- PwC Worldwide Tax Summaries, Armenia, Corporate - Taxes on corporate income (micro-business): taxsummaries.pwc.com
- Vardanyan & Partners: Armenia's micro-business tax exemptions and how to qualify: armenian-lawyer.com
- Vardanyan & Partners: Armenia's 2027 tax outlook (micro-business threshold): armenian-lawyer.com
How these pages are built: methodology and data sources. Last updated 2026-11-12.