If you earn interest on a deposit at an Armenian bank, that interest is taxable under Republic of Armenia (RA) law. Understanding how the tax applies helps you plan your savings and interpret the numbers you see in tools like the Saving.am calculator.
The 10% tax on interest income
Interest paid on bank deposits in Armenia is treated as income and is subject to a 10% income tax rate. This rate is set by RA tax legislation and applies to interest earned in AMD and in foreign currencies (e.g. USD, EUR) from accounts with Armenian banks.
What you actually receive
When the bank credits interest to your account, the amount already has tax taken out. For example, if gross interest in a year is 100,000 AMD, the bank withholds 10,000 AMD in tax and you receive 90,000 AMD as net interest. Your final balance and any projections (e.g. in the Goal Planner) should be based on this net amount.
Does this apply to all deposits?
Yes. The 10% tax applies to interest earned on time deposits, accumulative (savings) deposits, and similar products offered by banks in Armenia, regardless of currency. There is no separate declaration needed for this interest when the bank withholds the tax.
Planning with tax in mind
When you compare banks or terms, always think in terms of after-tax returns. A higher advertised rate might still give you a better net return, but the 10% reduces every rate equally. Use the Saving.am calculator to see final balance and net interest after tax, and consider reading our article on how Armenian banks calculate interest to see how frequency of payment affects growth.
Tax rules can change. For current rules and your personal situation, confirm with your bank or a tax advisor.