New Tax Framework for Online Taxi Services in Armenia

Published on: October 25, 2023
The Armenian government is preparing to regulate passenger transport services booked via online platforms. On October 25, the National Assembly will review amendments to the Law on Road Transport and related legislation.

Deputy Minister of Territorial Administration and Infrastructure, Armen Simonyan, stated that online taxi services have gained significant traction in Armenia. However, the absence of a legal framework allows operators to evade tax obligations, leading to unfair competition against compliant companies. The proposed legislation mandates that operators register their businesses and pay an annual state fee of 1 million drams upon starting operations.

Additionally, a state fee will apply to income from irregular passenger transport services booked online. This fee will be set at 1.5% for cashless payments starting September 1, 2024, increasing to 2.5% by January 1, 2025, and reaching 4% by February 1, 2026. For cash payments, the fees will start at 2% in September 2024, rise to 3.5% in January 2025, and reach 5% by February 2026. All taxi drivers must equip their vehicles with cash registers and issue electronic receipts. Non-compliance will incur penalties. This legislation aims to level the competitive landscape for passenger transport services in Armenia.