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Article 1. Property tax is an obligatory payment to the state budget on the property qualified as tangible property, which is owned or held by persons established by this Law in virtue of the right to full (partial) economic disposal.

The legal relations with the land tax are regulated by other legislative acts of the Republic of Armenia.

Article 2. Persons who enjoy ownership rights provided for by the Law of the Republic of Armenia "On Ownership in the Republic of Armenia", and who own in the territory of the Republic of Armenia or hold in virtue of the right to full (partial) economic disposal any property qualified as tangible property (object of taxation) in accordance with this Law, are qualified as property tax payers.

Article 3. The following items are taxable objects:

a) property indicated as having a certain value in the balance sheets (reports) of enterprises of any organizational and legal form established by the Law of the Republic of Armenia "On Enterprises and Business Activity", institutions, organizations and banks (hereinafter referred to as "enterprises"), except property the list of which is established by the Government of the Republic of Armenia by the consent of the Presidium of the Supreme Council of the Republic of Armenia;

b) residential houses, flats, cottages, garages, dwellings and buildings, other structures (hereinafter referred to as "buildings") owned in virtue of the right by the citizens of the Republic of Armenia, foreign citizens and stateless persons (hereinafter referred to as "citizens"), in a part of their total value 850 fold exceeding the minimum salary established by the legislation of the Republic of Armenia, but not less than the part 300 fold exceeding the minimum salary, as calculated per family member; livestock in a part of its value exceeding the norms established by the Government of the Republic of Armenia the consent of the Permanent Commission on Economy, Finance and Budget of the National Assembly of the Republic of Armenia, wheeled and caterpillar vehicles, other automobiles and mechanisms /Amendments of November 9, 1995, effective from November 9, 1995/.

In case when a building is transferred by the citizens to the enterprises for use, its full value are taxable object.

The order of evaluation of property which is qualified as a taxable object in the Republic of Armenia established by the Government of the Republic of Armenia by the consent of the Presidium of the Supreme Council of the Republic of Armenia.

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Article 4. Property tax is calculated at following annual rates:

a)for enterprises - 0.2% - 0.8% of the average annual value of property qualified as a taxable object. The Government of the Republic of Armenia by the consent of the Permanent Commission on Economy, Finance and Budget of the National Assembly of the Republic of Armenia establishes concrete tax rates /Amendments of November 9, 1995, effective from November 9, 1995/;

b)for citizens:

-0.2% of an amount exceeding a not taxed part of the evaluated cost of buildings;
-3% of the minimum salary established by the legislation of the Republic of Armenia, per horse-power of the engine of an air transport, or 4.08% per kilowatt power;
-1.5% of the minimum salary established by the legislation of the Republic of Armenia per horse-power of the engine of a water transport, or 2.04% per kilowatt power;
-1.0% of the minimum salary established by the legislation of the Republic of Armenia per horse-power of the engine of a wheeled or caterpillar vehicle or another automobile or mechanism or 1.36% kilowatt power;
-25% of the minimum salary established by the legislation of the Republic of Armenia - for the quantity of livestock exceeding the norms established in the order provided by paragraph (b) of the Article 3 of this Law.

Article 5. The enterprises calculate the property tax independently and submit the calculations to the tax bodies with quarterly and annual accounting reports (balance sheets). The tax amount is subject to pay to the budget within five days following the day established for the submission of quarterly accounting reports (balance sheets), and within ten days - for annual accounting reports (balance sheets).

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The citizens who have the right to tax privileges in accordance with this Law are submitted corresponding documents to the state tax inspection bodies of the Republic of Armenia.

The property tax on shared property is calculated in accordance with these shares.

The property tax on the property jointly owned or shared by the citizens is paid by them separately or, if so agreed, upon by the co-owners, by one of them.

The property tax are calculated from the month following the month when the ownership right on property arises. In case of the alienation of property, the tax is paid by the previous owner for the period beginning from January 1 of that year up to the month of alienation including.

Article 7. For inherited property, the tax is calculated and paid for the month following the month of the acceptance of inheritance.

Article 8. Corresponding state bodies carried out inventory and registration of the property which owned to citizens in virtue of the ownership right on property are obligated to submit to the state tax inspection bodies of the Republic of Armenia information necessary for calculation of property tax.

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Article 9. The following items are exempted from property tax:

-the property of budget organizations and institutions;
-the property that is used exclusively for the purpose of production, reprocessing and storage of agricultural goods, breeding, catch take and reprocessing of fish;
-property used for prosthetic and orthopedic purposes;
-the property of newly established enterprises - for a period of one year from its state registration, except the enterprises to which the privilege provided by the Article 22 of the Law of the Republic of Armenia "On Profit Tax" is not applied;
-the property used for scientific (scientific research, experimental designing, projecting and exploration) needs;
-the property used exclusively for educational, cultural and sport needs (except professional sport property and paid education system property);
-the property of enterprises which provided housing-municipal services (except hotels);
-the property of housing-municipal and social-cultural importance, indicated in the balance sheets of enterprises;
-the property used for creating state reserves, according to the decisions of the Government of the Republic of Armenia;
-the property of environment protection and anti-fire importance;
-communication roads (including automobile ways), communication and power transmission lines, as well as property used for the purpose of their direct exploitation.

Article 10. Following citizens are exempted from property tax levied from buildings, in the part equal up to 1000 fold of the minimum salary established by the legislation of the Republic of Armenia:

-all the first and the second category invalids;
-invalids of the first and second world wars, the persons who become invalids due to injuries or diseases caught at the front when defending the Republic of Armenia and the former USSR, or performing other military service duties;
-former partisans who become disable, family members of a person who died when defending the Republic of Armenia or the former USSR;
-military servants who passing temporary military service, their family members, officers and warrant officers of the Armed Forces of the Republic of Armenia;
-participants of the first and second world wars or participants of military actions undertaken to defend the interests of the Republic of Armenia and the former USSR, persons awarded with the title of a Hero of the former USSR, or awarded with 3 categories of the Glory Order, and their family members;
-double-side orphan children, until the end of the year that they reach the age of 18, or, for full-time students and pupils, the age of 24.

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Article 11. Issues regarding the rights and obligations of taxpayers and tax bodies and those related to liability for the violation of this Law are regulated in accordance with the legislation of the Republic of Armenia.

Article 12. The Government of the Republic of Armenia by consent of the Permanent Commission on Economy, Finance and Budget of the National Assembly of the Republic of Armenia can establish fixed payments, other rates and limits, the other procedure of calculation, payment and privileges on the property tax for individual payers or group of payers /Amendments of November 9, 1995, effective from November 9, 1995/.

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