Expense Reimbursement Policy in Armenia



Modified on: Fri, 3 Oct, 2025 at 3:30 PM

TABLE OF CONTENTS



This policy outlines the rules and documentation requirements for reimbursing business-related expenses incurred by employees working in or traveling to Armenia.



Invoicing & Documentation


To qualify for tax-free reimbursement, the following documentation is required:

  • Business Trip Certificate authorizing the travel
  • Employee Expense Report: Expense reports and receipts must be submitted within 3 working days of completing the trip
  • Original fiscal receipts for all expenses
  • Fiscal receipts are mandatory for every expense, regardless of amount.  All expenses must have a clear and justified business purpose.
  • Non-Cash Benefits: Must be handled with caution, as they are typically taxable for the employee


  • Company Name Requirement:
  • All receipts must be issued in the name of Horizons:

Horizons Global Technology Armenia LLC Tax code:

01042608 264.110.1255633



Reimbursement & Taxability

  • Tax-Free Expenses (with proper documentation):

    • Transportation tickets
    • Hotel accommodation
    • Business-related communication costs
    • Parking and tolls
    • Official daily allowance
  • Per Diems:

    • National Rate (2025): 12,000 AMD/day
    • International Rates: Published annually by the Ministry of Labor and Social Affairs
      (based on UN rates and vary by destination).
    • Amounts paid above the official caps are considered taxable income.


Travel & Mileage

  • Mileage Reimbursement:
    Armenia does not have a legally defined per-kilometer rate for private car use. Reimbursement is based on actual public transport costs (e.g., bus, train tickets).
  • Parking & Tolls:
    These are treated as separate business expenses and must be supported by original fiscal receipts. They are not included in mileage logs or per diem allowances.


Business Travel Caps

  • Domestic Travel:

    • Per Diem: 12,000 AMD/day
    • Lodging Cap: 25,000 AMD/day in Yerevan; 20,000 AMD/day in other regions
  • International Travel:

    • Daily allowance and lodging caps are set annually by the government based on UN rates
    • These serve as the maximum tax-free reimbursement limits


Travel-Specific Rules

  • All transportation costs (air, bus, train, taxi) are reimbursable with valid tickets or fiscal receipts
  • Electronic ride-hailing services (e.g., Bolt, GG) are permitted for business travel within Armenia


Client Entertainment & Gifts

  • Deductible for the company
  • Taxable for the employee if the benefit is non-cash (e.g., gifts, meals)


Health & Wellness

  • Not deductible: Gym memberships, therapy, yoga, etc.
  • Exception: Company-provided voluntary health insurance may be tax-free under specific conditions




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