BAKU, Azerbaijan, December 28. Transition from micro entrepreneurship to another category of entrepreneurship has been stimulated in Azerbaijan, Trend reports.
This was reflected in an amendment to the Tax Code, the decree on the application of which was signed by President Ilham Aliyev.
According to the current Tax Code, 75 percent of income from entrepreneurial activities of individual entrepreneurs who are micro entrepreneurs keeping records of income and expenses are exempt from income tax.
According to the law, the subject of micro-entrepreneurship with an average monthly number of hired workers in the corresponding year of not less than 3 people and no arrears of contributions to mandatory state social insurance plan 75 percent of income from business activities of individual entrepreneurs will be exempt from income tax from January 1 next year. The average monthly number of salaried employees for the relevant year will be determined by summing up the number of salaried employees for the calendar year and dividing by 12.
If a taxpayer, for the purposes of applying tax exemptions, has not fulfilled the condition set forth in this Article and in the next reporting year has switched from the policy of micro-entrepreneurship to another category of business entities, 75 percent of the income tax calculated and paid on the basis of the results of the previous three calendar years when the individual entrepreneur was a micro entrepreneur will be deducted from the amount of income tax liability during the period when he was another business entity.
Also, these tax exemptions will not apply to income derived from non-commodity transactions, if a taxpayer carries out non-commodity transactions.