BAKU, Azerbaijan, December 16. Starting next year, 75 percent of income for individuals operating as micro-entrepreneurs in various service sectors, with an annual turnover of up to 45,000 manat ($26,470), will be exempt from tax, without any conditions such as the requirement to have three employees or no outstanding social security contributions, Trend reports.
This is outlined in a proposed amendment to the Tax Code, discussed today at a meeting of the Azerbaijani Parliament.
The mentioned service areas are as follows:
- software development
- design and decor services
- translation services
- advertising services
- research activities
- services in science, education, culture, and sports
- legal, auditing, accounting, and financial consulting
- journalism
- market research
- valuation services
- order delivery and courier services (excluding freight transport)
- tour guiding
- export services
To note, in accordance with Article 102.1.30 of the Tax Code, since January 1, 2024, 75 percent of the income from business activities of individual micro-entrepreneurs who employ at least three workers and have no arrears in mandatory state social insurance contributions are exempt from income tax.
These proposed exemptions apply only to individuals, while legal entities can benefit from the tax exemptions once they meet the same conditions as before, such as having at least three employees on average and no outstanding social security payments.
After discussions, the issue was put to a vote and passed in its third reading.