Baku, Azerbaijan, Dec. 21
By Azad Hasanli - Trend:
Starting from January 1, 2019, employees in Azerbaijan’s private sector who are not involved in the oil and gas sector will be exempt from income tax for a period of seven years, according to the amendments to the tax legislation approved Dec. 20 by the decree of Azerbaijani President Ilham Aliyev, Trend reports.
This applies to salaries worth up to 8,000 manats. If the salary exceeds 8,000 manats, the income tax rate will be 14 percent.
Presently, the income tax rate is 14 percent from income of up to 2,500 manats per month. Above this amount, the tax rate is 25 percent plus 350 manats.
If an employee has two or more jobs, the income tax from each job will be calculated separately.
The amount not subject to income tax will be increased from 173 manats to 200 manats. As opposed to the previous amendment, this will apply to all sectors, including the oil and gas sector.
Starting from January 1, 2019, new amendments to the Tax Code will come into force in Azerbaijan.
The amendments provide for new benefits and tax exemptions, as well as expanding the taxable base, introduction of next generation cash registers, improving tax administration and other measures.
(1 USD = 1.7 AZN on Dec. 21)
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