High-tech turnover tax 1% (IT sole proprietor)
activeSole proprietorWhat you pay
- Mandatory funded pension contribution — progressive on revenue (allowance 3,000,000): 10% above
- Health insurance contribution — fixed 10,800 per month
- Military stamp duty — fixed per year by annual revenue: 12,000 up to 12,000,000; 120,000 above
- High-tech turnover tax 1% — 1% of revenue
Eligibility
- Revenue cap 115,000,000 AMD/year
- Activities: it-services, software-development, r-and-d, high-tech (government-defined list)
- Requires tax residency
- Limited to first 7 years
- Preferential 1% turnover-tax rate on income from government-defined high-tech/IT activities, in force 2025-01-01 to 2031-12-31 (Laws HO-498-N state support + HO-499-N Tax Code amendments). Requires listing in the state High-Tech Registry (self-service platform live since 2025-04-17), at least 90% of sales from qualifying activities, election by 20 February, and no overdue tax liabilities. Individual entrepreneurs qualify. Same 115M AMD turnover cap as the general turnover-tax regime; exceeding it forces exit.
Net income examples
| Gross/year | Net/year | Burden |
|---|---|---|
| 30,000 EUR | 26,820 EUR | 10.6% |
| 60,000 EUR | 53,520 EUR | 10.8% |
| 120,000 EUR | 106,920 EUR | 10.9% |
Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.
DSL modelling notes: (1) The funded pension for individual entrepreneurs is 5% of gross income up to 6M AMD/year, then 10% × income − 300,000 above 6M. The −300,000 constant is expressed exactly as a 10% progressive rate on (revenue − 3,000,000), since 10% × (income − 3,000,000) = 10% × income − 300,000; this is correct only for income ≥ 6M (below 6M the true charge is 5% of income). Both examples are above 6M, so the model is exact for them. (2) The pension is charged on GROSS turnover, not net profit — verified — which is why the real burden is far above the headline 1%. (3) No maximum annual pension ceiling is stated in any official source consulted (the employee ceiling of ~1,050,000 AMD/yr is not confirmed to apply to individual entrepreneurs), so the pension is modelled uncapped; if an IE ceiling does apply it would lower the burden at high incomes — flagged for manual review. (4) Health contribution 129,600 AMD/yr applies when prior-year income exceeds ~2.4M AMD; assumed to apply. (5) Military stamp duty 2026: 12,000 AMD if annual income ≤ 12M, 120,000 AMD if above. VAT is not triggered below the 115M AMD registration threshold.