Social insurance burden for entrepreneurs to reduce in Azerbaijan
BAKU, Azerbaijan, April 29
By Fidan Babayeva - Trend:
A new draft amendment to Azerbaijani Law on Social Insurance envisions a reduction in the social insurance burden by 2-4 times, Head of Tax Legislation Improvement Department of Main Tax Policy Office of Azerbaijan’s State Tax Service Elnur Yusifov told Trend.
According to him, starting from September 1, 2019, the minimum monthly salary was increased to 250 manat ($147), which led to a certain growth in the social insurance burden.
“Thus, for some business entities carrying out activities without hiring an employee, the burden of social insurance is calculated in the amount of a certain percentage of the minimum salary. It was set at 50 percent in the trade and construction industries and at 25 percent in other sectors. The new amendments proposed to reduce a 50 percent insurance burden by half, and a 25 percent insurance burden by 15 percent from April 1,” he said.
Yusifov added that it is also planned to reduce the burden on social insurance of business entities engaged in activities with a fiscal check.
"It is planned to reduce the social insurance burden and the administrative burden on a number of business entities working with fiscal receipts: hairdressers, tailors, organizers of weddings and celebrations," he emphasized.
The division head noted that one of the measures provided for in the state support program aimed at enhancing economic activity is related to the provision of tax benefits and holidays to entrepreneurs.
"The special quarantine regime applied in the country has led to either complete or partial restriction of the activities of most business entities. The draft law envisions providing tax benefits and vacations to all entrepreneurship entities, whose activities are fully or partially limited, and exempting entrepreneurs from income and profit tax in full," he added.
($1 = 1.7 manat on Apr. 29)
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