Azerbaijan eyes to amend rules for social insurance contributions
Baku, Azerbaijan, Nov. 17
By Ilhama Isabalayeva - Trend:
There are plans in Azerbaijan to amend the rules for calculating compulsory state social insurance contributions.
In this regard, amendments to the law “On Social Insurance” are envisaged.
In accordance with the proposed additions to the law, Azerbaijan’s Ministry of Taxes, in accordance with the established procedure, will impose financial penalties for the late submission of the report on compulsory state social insurance contributions, charge interest for the late payment of compulsory state social insurance contributions and return the surplus from social insurance contributions.
The law is also being amended regarding the contributions from monthly income.
In accordance with the proposed changes, the social insurance contribution from the salary of up to 200 manats will be 25 percent. Three of these 25 percent will be paid from the employee’s income and 22 percent will be paid by the employer.
If the employee’s salary exceeds 200 manats, it is proposed to apply another deduction principle: the employee pays 6 manats and 10 percent of the amount exceeding 200 manats, and the employer pays 44 manats and 15 percent of the amount exceeding 200 manats.
It is also proposed to amend the law regarding compulsory state social insurance contributions of insured persons who receive income from activities not related to hired labor.
For people engaged in entrepreneurship, contributions are proposed to make 50 percent of the minimum wage for construction and trade workers and 25 percent for those working in other spheres.
For those working on the basis of a civil law contract, contributions are proposed to make 25 percent of the income from the source of payment. For special notaries, contributions are proposed to make 25 percent of the tenfold minimum salary.
For legal entities and individuals paying royalties, contributions are proposed to make 15 percent of the royalty.
For members of Azerbaijan’s Bar Association, independent auditors, independent correspondents, contributions are proposed to make 20 percent of the income.
It is expected that the proposed changes to the law will enter into force on January 1, 2019.
(1.7 manats = 1 USD on Nov. 17)