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TAXATION
Companies with foreign investment are subject to the same tax regime as Armenian
companies. Specific privileges (exemptions) in corporate taxation apply to com-
panies with foreign investment exceeding 500 million AMD (approx. 855,000 US$).

COMPANIES PROTECTION AND PROFITS REPATRIATION
As provided by the law on Foreign Investments, in the case of changes in the
legislation of Armenia regulating foreign investments, the laws, which were in
force at the time when the investment was made, shall be applied for a five-year
period, upon the request of a foreign investor.
Foreign investments in Armenia cannot be nationalized or confiscated. Confisca-
tion may be allowed only as an extreme measure in emergency cases as declared in
accordance with the legislation of the Republic of Armenia, and it may be applied
only upon the decision of a court and with full compensation. Investors must also
be compensated for any damage or loss of profit resulting from illegal actions by
state bodies or officials. Compensation shall be paid at current market prices or
prices determined by independent auditors either in the currency invested, or in
any other currency mutually agreed upon by the parties.
There are no restrictions on conversion or repatriation of capital and earnings
including branch profits, dividends, interest, royalties, or management/techni-
cal service fees. Cash exports are limited to 10,000 US$ or its equivalent. There
are no limitations on wire transfers. Funds may be converted and transferred
through domestic banks.
Twenty-two banks have foreign participation in Armenia. The major banks are:
HSBC-Armenia (UK), Mellat Bank (Iran), Unibank (Russia), Areximbank (Russia) and
Commercial Bank of Greece.
All forms of property and civil rights to own and use property are protected by
the Constitution. The Law on Property Registration regulates issues relating to
the registration of property rights.
Armenia is also a member of MIGA as an additional guarantee for foreign inves-
tors.

DISPUTE SETTLEMENT
Commercial disputes may be settled either in state courts or through alternative
dispute resolution mechanisms. Commercial or property related disputes may be
settled by institutional or ad hoc panels of experts (e.g. chambers of commerce
or bank associations). Armenian courts are independent.
Armenia is a signatory to the international convention on investment disputes and
is a member of the International Center for Investment Disputes Settlement.
As provided by the Bilateral Investment Treaties (BIT) signed by Armenia, foreign
investors can apply to internationally established tribunals for the resolution
of commercial issues.

BILATERAL INVESTMENT TREATIES
BILATERAL TREATIES ON INVESTMENT PROMOTION AND PROTECTION (BITs) have been con-
cluded with 30 countries, 22 of which have already been ratified. These countries
are: Argentina, Belarus, Belgium-Luxemburg Economic Union, Bulgaria, Canada,
China, Cyprus, France, Great Britain, Georgia, Germany, Greece, Iran, Italy,
Israel, Kyrgyzstan, Lebanon, Romania, Tajikistan, Ukraine, the USA and Vietnam.
BITs with Brazil, Czech Republic, Japan, Holland, Macedonia, Morocco, Slovenia
and Jordan are currently in the process of negotiations. Armenia is a signatory
to the CIS Multilateral Convention on the Protection of Investor Rights.

FREE TRADE TREATY
Armenia has FREE TRADE REGIMES with Georgia, Kyrgyzstan, Moldova, Russia, Tajikistan,
Turkmenistan, and Ukraine. Under the terms of free trade agreements, tariff
exemptions are extended to goods traded between Armenia and Belarus, Georgia,
Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan and Ukraine. Excise taxes
are charged at various rates on the importation or production of several types of
goods, including alcohol, tobacco and petrol.

MOST-FAVORED-NATION TRADE REGIMES with Argentina, Bulgaria, Canada, China, Cyprus,
the EU, Iran, India, Hungary, Lebanon, Poland, Romania, Syria, Switzerland, the
USA and Vietnam.

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