Business Trip in Armenia and Abroad: Taxation, Documentation, and Best Practices

Business trips sound straightforward—book a flight, attend a few meetings, maybe squeeze in a quick city tour, and head back. But once you throw in tax rules, reimbursement policies, and paperwork requirements, it quickly turns into a game of “Did I do this right?” If you’re planning a business trip in Armenia—whether you’re a local company sending staff abroad, or a foreign team flying in—you should know the rules before your plane takes off.

This guide breaks down what actually counts as a business trip, how business trip taxes in Armenia work, and what kind of documentation you need to keep things clean (and legal). 

From understanding if per diems are taxable to knowing how to pay for travel taxes in Armenia, we’ll help you skip the confusion and stay compliant.

What Is Considered a “Business Trip” in Armenia?

A business trip in Armenia is officially defined by the RA Labor Code as a temporary work-related assignment outside an employee’s primary workplace. This means you’re sent by your employer to perform job duties somewhere other than your usual office, but it’s not a permanent relocation. The trip must be formally ordered by your employer and should clearly state the purpose, duration, and connection to your job responsibilities. During the trip, employees are guaranteed to keep their job and regular wage.

Legal Definition (RA Labor Code)

According to the RA Labor Code:

• A business trip is a temporary assignment outside your main workplace, ordered by your employer for work-related purposes.
• The assignment must have a clear start and end date.
• The employer must issue an official order specifying the trip’s details (who is going, where, why, and for how long).
• Employees keep their position and salary during the trip.

Distinction Between a Business Trip, Assignment, or Temporary Relocation

It’s important to distinguish a business trip from other types of work arrangements:

Misclassifying a business trip as an assignment or a relocation (or vice versa) can lead to tax and labor law issues, such as incorrect documentation, tax deductions, or employee rights violations.

How Is a Business Trip Taxed in Armenia?

If you’re heading out on a business trip in Armenia, here’s a quick, clear rundown on how the taxes work and what you need to know about documenting your expenses.

Types of Expenses – Per Diem, Transportation, Accommodation, Miscellaneous

The most common expenses covered on a business trip include:

• Per diem (daily allowance): Covers meals and minor daily expenses. In Armenia for trips abroad, the amount is set by government rates for each destination.
• Transportation: Flights, trains, taxis, and other travel costs can be reimbursed if you provide receipts.
• Accommodation: Hotel stays are reimbursable with proper documentation (such as official invoices or receipts), but only 60% of the government rate may be reimbursed.
• Miscellaneous: Other work-related expenses (like visa fees for international trips) may also be covered, but need supporting documents.

Some expenses (like per diem) are standardized, while others (like hotels or flights) require proof.

Which Parts Are Taxable vs. Non-Taxable

• Non-taxable: If you’re reimbursed for actual expenses (with receipts), these are generally not taxed.
• Taxable: If you receive allowances above the government-set limits, or can’t provide documentation, the excess is treated as taxable income and subject to income tax and those expenses aren’t deductible from companies annual profit tax.

Is Per Diem Subject to Tax?

• Within Limits: As long as your per diem is within the government-approved cap, it’s not taxed.
• Above Limits or Unsubstantiated: Any amount above the cap, or per diem paid without proper justification, is considered taxable income.

Key Differences in Taxation for Local vs. International Business Trips

• Local Trips: Standard per diem limits apply, and you’ll mostly deal with expenses in AMD.
• International Trips: Per diem rates are set by the United Nations for each country. You might have extra costs (like visas or currency exchange fees), and if you’re working in a country with a tax treaty with Armenia, double taxation can sometimes be avoided.
• Documentation: For both local and international trips, keep all receipts and records to ensure reimbursements stay non-taxable.

Examples: How a Business Trip Is Taxed in Different Scenarios

Here’s how business trip taxes in Armenia work in real-life situations.

Domestic Travel – Yerevan to Regions

If you’re traveling from Yerevan to other regions in Armenia, your per diem and hotel costs are usually covered by your employer and are tax-free, as long as you provide proper documentation like receipts and a business trip order. If you go over the official per diem limit, the extra amount becomes taxable income.

International Travel – Georgia, Russia, EU

For trips abroad, things get a bit more detailed. You’ll need to deal with foreign receipts and possibly exchange rate conversions. Per diem rates are set by the Armenian government for each country, and as long as you stay within those limits and keep your receipts, your reimbursements are non-taxable. Double taxation treaties can help avoid being taxed twice on the same income.

Trips Longer Than One Week

Longer trips mean more paperwork. You’ll need extended documentation to justify extra per diem or accommodation. Keeping detailed receipts is crucial—they prove how long you stayed and that the trip was for business, not leisure.

Business Trip With Additional Bonuses or Allowances

If you get a bonus or extra allowance that isn’t directly tied to travel expenses (like a “travel bonus”), that’s considered taxable income and will be taxed just like your salary. The key is to keep reporting clear and transparent to avoid trouble for both you and your employer.

What Documents Are Required for a Business Trip?

If you’re planning a business trip in Armenia, keeping your paperwork in order is key for smooth travel and hassle-free tax reimbursement. Here’s a quick checklist of what you’ll need:

Official Business Trip Order

• This is a must-have: your employer should issue and sign an official order before you leave.
• It proves your trip is for work and is essential for both company records and tax compliance.

Expense Report or Reimbursement Statement

• After your trip, you’ll need to submit an expense report.
• Include all receipts, travel dates, and a short note on what each expense was for. This is how you get reimbursed and keep things tax-free.

Tax Invoices/Receipts for Expenses

• For any reimbursed costs (like hotels, taxis, meals), keep the original receipts.
• If you want to reclaim VAT, make sure the invoices include VAT details.
• Both paper and e-invoices are fine, but the amounts must match what you claim.

Supporting Documents – Tickets, Hotel Receipts, Meeting Proof

• Attach your travel tickets, hotel booking confirmations, and any proof of business meetings (like agendas or signed attendance forms).
• These documents back up your expense claims and show the trip was genuinely for business.

 Business Trip Tax Reporting: How to Do It Right

Recording Business Trip in Accounting Systems

• Log every business trip expense in your company’s ERP or accounting software.
• Make sure to include exchange rates for foreign expenses and use the correct local tax codes for each entry.

What Tax Authorities Check During Audits

• Auditors look at whether your per diem payments stay within legal limits, if the trip’s purpose is valid, and if there’s a clear documentation trail (orders, receipts, reports).
• They’ll also check if all expenses match what’s been reported in your accounting system.

Common Mistakes That Trigger Fines

• Missing receipts or incomplete documentation.
• Undocumented bonuses or allowances.
• Claiming personal expenses as business costs.
• Paying per diem above the legal limit without proper justification

Employer Obligations for Business Trip

Labor Code Requirements

• Employers must clearly define the purpose of every business trip in Armenia, issue a formal travel order before departure, and cover per diem plus all reasonable travel expenses according to the RA Labor Code.
• The travel order is mandatory and should outline the trip’s objectives, dates, and payment details.

Worker Protection During Travel

• Employers are responsible for ensuring employee safety during business trips. This includes providing insurance, following safety protocols, and making sure employees have access to medical care if needed.

Tracking Working Hours and Overtime

• Travel time for business trips may count toward working hours, depending on the employment contract and company policy.
• Overtime rules from the RA Labor Code apply, so extra hours spent traveling or working should be tracked and compensated properly.

Common Myths and Misunderstandings About Business Trip Taxation

When it comes to business trip taxes in Armenia, there are plenty of misconceptions floating around, especially for foreigners navigating the system. Let’s clear up some of the most common myths so you know what’s really what.

• “Per Diem Is Always Taxable”
  Not true! Per diem payments for a business trip in Armenia are only taxed if they go over the government-approved limits. Stay within the cap, and it’s tax-free.
• “Everything Is Taxed If the Trip Is Abroad”
  Wrong again. While some rules change for international travel, not all expenses are taxed. Double taxation agreements can also help foreigners avoid being taxed twice on the same income.
• “You Can’t Use Business Funds for Personal Expenses”
  This one’s mostly true. Personal expenses can’t be claimed as business costs. But if your trip overlaps with a weekend or personal time, you can still claim the business portion as long as it’s clearly documented.

Best Practices for Properly Managing Business Trip Taxation

Handling taxes for a business trip in Armenia doesn’t have to be stressful—if you follow a few tried-and-true best practices. Whether you’re managing travel for a local team or hosting foreign partners, proper planning can help you stay compliant and avoid unnecessary penalties.

Always Have Documented and Justified Expenses

Every taxi ride, hotel stay, and meal should be backed up with a receipt—and ideally, a short note explaining what it was for (e.g., “client meeting – lunch”). Armenian tax authorities expect clear documentation to justify business expenses, especially when you want to pay for travel taxes in Armenia without triggering audits or rejection.

Consult a Tax Advisor Before Major Trips

Not sure if that 10-day seminar abroad counts as taxable or tax-free? That’s where a good advisor makes all the difference. For international travel or extended trips, getting guidance upfront can save you from financial and legal headaches later.

Our team, Profin Consulting, an experienced Armenian accounting firm, can help you review your travel plans, structure your per diems properly, and ensure that every aspect of your business trip meets local tax requirements. It’s better to plan smart than fix mistakes after the fact.

Accounting Tips for Domestic vs. International Travel

It’s a good idea to treat local and international travel separately in your books. Use distinct cost codes or categories in your accounting software to track expenses by destination. This makes reporting—and tax filing—a whole lot easier, especially when calculating deductible amounts.

Budget Planning for Business Trips

Set clear guidelines before your team hits the road. Decide per diem rates, accommodation budgets, and even an emergency reserve. This not only keeps your spending in check, but also avoids awkward “can we expense this?” conversations mid-trip.

Need help building a travel policy that makes tax compliance easy? Profin Consulting can assist with setting smart per diem rates, budget planning, and crafting documentation templates tailored to Armenian regulations.

Conclusion

A business trip in Armenia may look like just another item on the calendar—but behind the scenes, it comes with strict rules and responsibilities. To keep things smooth (and tax-compliant), you need to know what qualifies as a business trip, document every expense properly, and understand what’s taxable and what’s not.

Good planning goes beyond booking tickets—it means avoiding costly tax mistakes and staying in line with Armenian labor and tax laws. Whether you’re managing domestic travel or sending teams abroad, the right paperwork and clear budgeting can save you time, money, and stress.

And when things get complicated? Trust the experts. Profin Consulting is here to help with travel-related accounting, documentation, and tax compliance—so you can focus on the business, not the bureaucracy.