Azerbaijani SSPF simplifies rules of reporting by entrepreneurs
Azerbaijan, Baku, June 1 / Trend M.Aliyev A.Akhundov /
Individuals engaged in entrepreneurial activities and landowners in Azerbaijan may be exempt from submitting declarations of social insurance premiums payments to the State Social Protection Fund (SSPF), Fund Head Salim Muslimov said.
He said that such changes to the existing legislation are planned with this goal in sight.
"Deductions on the compulsory social insurance paid by this category of persons are found in a stable amount. This amount is clearly visible on their account, and we have carried out the appropriate accounting. Thus, there is no need for submission of declarations," Muslimov said.
He said preparations are underway to implement the automated system when submitting declarations on social insurance premiums and pensions payments.
"Work on organizing reporting in an e-form is expected to be completed in the next month," Muslimov said.
Today, deductions on compulsory social insurance of employees are formed from two sources: employers carry out deductions at 22 percent from the payroll fund and three percent is deducted from the salary of the employee.
Since 2008, the rate was reduced on the social insurance deductions for persons engaged in entrepreneurial activity without establishing a legal entity, and a flat rate was applied for landowners. Under the current law on social insurance, individual entrepreneurs engaged in trade, transport, construction, pay monthly for compulsory social insurance (50 percent compared to 70 percent of the minimum wage, in other areas 20 instead of 40 percent). The minimum wage today is 85 manat.
The rate is set at six percent of the minimum wage for workers in family farms.