Armenia

Armenia classifies crypto-assets as property, a definition formalized by recent amendments to its Civil Code. While cryptocurrencies are legal in the country, there is no dedicated tax framework specifically for crypto yet, instead, general tax and civil laws apply to crypto activities. The State Revenue Committee of the Republic of Armenia (SRC) is responsible for administering and enforcing tax laws relevant to crypto. The Central Bank of Armenia (CBA) is actively leading the development of specific crypto regulations for the country. For individual investors who are not operating as entrepreneurs, the tax landscape is very favorable: you pay 0% capital gains tax on profits from selling crypto-assets. This exemption applies regardless of the holding period, and there is no distinction between short-term and long-term gains. This 0% rate also covers converting crypto to fiat currency and swapping one crypto for another, including stablecoin exchanges. However, if individuals are actively engaged in mining or providing certain crypto-related services, these activities are subject to a 20% income tax. For individuals formally registered as entrepreneurs, crypto gains are taxed at a 10% income tax rate. Companies engaged in crypto activities are subject to an 18% corporate tax, with a notable exception for those operating in the ECOS Free Economic Zone, which offers a 0% corporate tax for 25 years. A 20% Value Added Tax (VAT) may potentially apply to crypto services or the disposal of crypto as intangible assets, but its precise application to pure crypto trades remains unclear. Specific crypto activities also have distinct treatments. Passive yields from staking or DeFi protocols are generally not taxed for non-entrepreneur individuals. However, if your participation in staking or DeFi is considered active, it will be taxed as income at 20%. Mining rewards are subject to a 20% income tax for individuals, 10% for sole proprietors, and 18% for companies. Non-fungible tokens (NFTs) are classified as crypto-assets or property, meaning gains from their sale for non-entrepreneur individuals are also exempt from tax. Armenia's crypto tax environment is currently undergoing developments. A Draft Law 'On Crypto-Assets,' introduced by the Central Bank of Armenia, is anticipated to come into effect in 2025. This legislation aims to establish a comprehensive framework for regulating crypto operations, clarifying taxation rules, and setting reporting obligations.