The aim of the research is to analyze international experiences in territorial administration, comparing them with the local self-government system of the Republic of Armenia (RA), highlighting both similarities and areas for improvement. This article focuses on studying international models of territorial administration and their relevance to the context of RA. We examine various models of local self-government, their management methods, and the primary sources of community revenue formation, conducting a comparative analysis. Additionally, we explore the local self-government system in RA, examining the methods of revenue generation and highlighting its unique aspects. Within the study, we emphasize the need and significance of modernizing revenue sources within communities. We provide recommendations considering areas for improvement within communities and emerging development trends. These recommendations include the introduction of a new type of tax, the hotel tax, as well as deductions from income tax, profit tax, environmental tax, and royalties.