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Article 1. Land tax payers are land owners, permanent or temporary users of state property land.

The tax for lands disposed for use on rental conditions is levied from the lessor.

Article 2. The object of taxation for lands of agricultural importance is the imputed net income determined by the cadaster evaluation of lands .

The object of taxation for lands of non-agricultural importance is the cost of the land on cadaster evaluation.

Article 3. The amount of the land tax does not depend on the results of the taxpayers’ economic activity and is established in the form of an annually paid fixed payment for one unit of the area of land lot, which is paid annually.

Article 4. The land tax for lands of agricultural importance (including land lots disposed for the purpose of housing in settlements and gardening) is established at the rate of 15 percent of the imputed net income determined by their cadaster evaluation.

Article 5. The land tax for lands of non-agricultural importance is established at the following rates:

a) land tax rates for industrial lands (including mines and territories dislocated from production activity) transport, communication, radio-broadcasting, television, land used for defense, or lands occupied by the gas pipe line, as well as lands for the water stock, are established according to the cost of cadaster evaluation of the soil of corresponding zones of cadaster division, at following amounts:
-inside the settlements - 1 percent
-outside the settlements - 0.5 percent

b) land tax rate for lands of forest stock (excluding the agricultural kinds of soil) is established at the rate of one percent of the average cost at the cadaster evaluation of the lands of the corresponding zones of cadaster division not being used.

c) land tax for the lands of non-agricultural importance is established at the rate of one percent of the cost of the cadaster evaluation of the soil.

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Article 7. Land tax is levied from payers engaged in agricultural activity (production of agricultural output). They are exempted from profit tax (income tax), except the agricultural enterprises of industrial origin ( hot-houses, fur farms, stock- breeding complexes, poultry farms, ext.) the list of which is confirmed by the Government of the Republic of Armenia, with the agreement of the Permanent Commission on Economy, Finance and Budget of the National Assembly of the Republic of Armenia /Amendments of November 9, 1995, effective from November 9, 1995/.

Taxpayers, with a more than 25 percent profit (income) from non-agricultural activity, are not exempted from income tax (profit tax). For this purpose the payers are obliged to conduct separate registration of costs of the production and turnover, as well as realization in regard to agricultural and non- agricultural activity.

Article 8. Land tax is calculated beginning from the month following the month of acquisition of the ownership right on permanent or temporary use of the land lot.

Article 9. During the reporting year, the taxpayer who has exemption right on the payment of the land tax, is exempted from paying this tax from the beginning of the month, when the privilege has been granted.

In case of the suspension of the tax exemption right during the reporting year, the tax is calculated beginning from the month following the month of its suspension.

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Article 10. The following is exempted from land tax:

a) institutions and organizations financed by the state budget, as well as state reserves, national parks, botanical gardens, and lands of historic - cultural importance, except lands given for rental and public use;

b) agricultural and agricultural collective farms, formed during the land reforms and privatization period, beginning from the month of the acquisition of ownership right, for a two year period;

c) owners and the permanent or temporary users of land, whom according to the legislation of the Republic of Armenia the land is allotted on income tax exemption conditions for a certain period of time;

d) state owned land of public use in settlements ( squares, streets, passages, roads, parks, reservoirs, e.c.t.);

e) educational - productive and experimental land lot, under professional technical schools;

f) newly planted fruit and vineyards, (until their complete fruitfulness, according to the periods set by agrotechnical indications for each sort) if their total area is 0.1 hectare or more.

Article 11. The following is exempted from land tax at 50 percent :

a) scientific organizations on agriculture and forestry, and the experimental, seed-growing, nursery, pedigree and sorting experimental enterprises of scientific research institutions and educational institutions, the list of which is confirmed by the Government of the Republic of Armenia, for those lands that are exclusively used for scientific and educational purposes, as well as for the sort experimentation of agricultural and forest plants.

b) citizens had the land ownership right, exempted from the payment of income tax according to the legislation of the Republic of Armenia.

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Article 12. The documents confirming the right of ownership on temporary and permanent use of land are the basis for land tax calculation.

Article 13. Enterprises (except agricultural farms), institutions and organizations calculate the land tax independently and no later than the 1st of September of each year present to the State tax inspection bodies calculations for each taxable land lot.

Calculations on taxation for newly allotted land lot are presented during a month period following the acquisition of the land use right.

Article 14. Citizens and agricultural farms calculate their land tax independently, based on the payment notices delivered to them by the 1st of September of each year by the state tax inspection bodies.

Article 15. The registration of payers and the land tax calculations are carried out by the 1st of June of each year.

The State tax inspection bodies carry out the registration of payers, and establish control of the correct calculation and timely payment of tax.

Article 16. The calculated amounts of tax are paid to the State budget by citizens and agricultural farms in equal parts, no later than November 15 of the reporting year and until April 15 of the next year. The enterprises, institutions and organizations pay once in a quarter, until the 25th of the month following this quarter.

Article 17. The payment of the tax to the State budget is carried out according to the legislation of the Republic of Armenia.

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Article 18. Taxpayers as well as the officials of enterprises, institutions and organizations bear responsibility for violation of this Law according to the legislation of the Republic of Armenia.

Article 19. 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 rates and limits, the other procedure of calculation and payment of the land tax and tax privileges for individual payers or group of payers /Amendments of November 9, 1995, effective from November 9, 1995/.

Article 20. Regulations on application of this Law are worked out and published by the State Tax Inspectorate of the Republic of Armenia by consent of the Ministry of Finance of the Republic of Armenia, the Ministry of Economic of the Republic of Armenia, the Ministry of Justice of the Republic of Armenia and the Ministry of Agriculture of the Republic of Armenia.