The United States–Armenia Income Tax Treaty was designed to prevent double taxation and promote fair taxation between the two countries. This agreement ensures that individuals and businesses earning income in both nations are not taxed twice on the same income, while also encouraging trade, investment, and cross-border cooperation.

At Z Tax & Accounting, our team of enrolled agents and international tax experts assists U.S. residents, Armenian nationals, and dual-country businesses in applying the correct treaty benefits for reduced tax obligations and full IRS compliance.

Key Objectives of the U.S.–Armenia Tax Treaty

The treaty’s primary goals are to:

• Eliminate Double Taxation – Income that has already been taxed in one country may be exempt or eligible for a foreign tax credit in the other.
  
  

• Clarify Residency Rules – Defines how residency is determined for individuals and entities to avoid overlapping tax jurisdiction.
  
  

• Allocate Taxing Rights – Specifies which country has the right to tax various types of income such as wages, business profits, dividends, interest, royalties, and capital gains.
  
  

• Promote Economic Cooperation – Encourages cross-border trade and investment by reducing withholding tax rates and providing clear taxation guidelines.
  
  

• Prevent Tax Evasion – Includes provisions for exchange of tax information between the U.S. and Armenian authorities to ensure transparency.
  
  

Major Treaty Benefits for Individuals and Businesses

The treaty provides significant relief for taxpayers who qualify under its provisions:

1. Reduced Withholding Rates

• Dividends: Lower rates may apply when a U.S. company pays dividends to an Armenian shareholder (and vice versa) if ownership thresholds are met.
  
  

• Interest and Royalties: Withholding taxes on interest and royalty payments are reduced or eliminated for qualifying entities.
  
  

2. Business Income

Profits earned by a business are only taxed in the country where it has a permanent establishment (such as an office, branch, or factory). This prevents double taxation on business earnings.

3. Employment and Independent Services

Income from employment or professional services is generally taxed in the country where the services are performed unless the individual is present temporarily or under specific treaty exceptions.

4. Capital Gains

Gains from the sale of property, shares, or business assets are typically taxed only in the country of residence, with exceptions for real property and permanent establishments.

5. Pensions and Social Security

The treaty provides guidance on how retirement income and social security benefits are taxed between the two nations to avoid double taxation during retirement.

How Z Tax & Accounting Helps You Benefit from the Treaty

Understanding and applying the U.S.–Armenia Tax Treaty requires expert knowledge of both U.S. tax law and international reporting standards. At Z Tax & Accounting, we specialize in:

• Treaty-based return preparation for U.S. citizens living in Armenia and Armenian residents with U.S. income
  
  

• Foreign Tax Credit and Exemption Analysis to ensure no income is taxed twice
  
  

• Business structuring for cross-border entities to optimize tax efficiency
  
  

• IRS disclosure compliance for foreign assets and accounts (FBAR, FATCA)
  
  

• Advisory services for dual-resident taxpayers, expats, and foreign investors
  
  

Why Choose Z Tax & Accounting for International Tax Services

Z Tax & Accounting provides nationwide tax services backed by experienced IRS Enrolled Agents and Certified International Tax Professionals. Whether you are an individual investor, expatriate, or business owner operating between the United States and Armenia, our firm ensures that you receive every treaty benefit available to minimize your global tax burden and maintain full compliance with both countries’ tax laws.

Contact Z Tax & Accounting Today

If you need expert help applying the U.S.–Armenia Tax Treaty, our international tax specialists are ready to assist.

📞 Phone:  (214)  699-4790
📍 Office: 600 E John Carpenter Freeway, Suite 268, Irving, TX 75062

Z Tax & Accounting — Trusted Experts in International and Cross-Border Taxation

The above Summary may not include specifics about individual taxpayer's specific situation and is for general information. Contact us directly to discuss your situation. The link to the actual Tax treaty is as under: