BAKU, Azerbaijan, November 27. A total of 75 percent of the revenues generated by microentrepreneurs (with at least three employees) in Azerbaijan is envisioned to be exempt from tax, provided they do not have outstanding social security contributions and their annual turnover on a number of services does not exceed 45,000 manat ($26,470), without any further conditions, starting from 2025, Trend reports.
This issue has been reflected in the proposed amendment to the Tax Code, discussed at the parliamentary meeting today.
The mentioned service sectors include:
- software development;
- project design and decoration;
- translation services;
- advertising services;
- research activities;
- science, education, culture, and sports;
- law, independent auditing, accounting, and finance consulting;
- journalistic activities;
- market research;
- valuation;
- order delivery and courier, excluding freight transportation by road;
- tourist guide;
- export.
After discussions, the document was put to a vote and approved in the first reading.
From January 1, 2024, under the current version of Article 102.1.30 of the Azerbaijani Tax Code, 75 percent of the income generated by micro-entrepreneurs (with at least three employees per month) has been exempt from income tax, provided they do not have outstanding social security contributions.
The proposed benefits apply only to individuals, while legal entities will be able to take advantage of the benefits after fulfilling the conditions as before (i.e., with an average monthly number of employees for the year of at least three people and no debt in contributions to compulsory state social insurance).
The law will be effective as of January 1, 2025, if it is ultimately passed.
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