BAKU, Azerbaijan, April 22
By Eldar Janashvili - Trend:
The social burden on agricultural workers in Azerbaijan will be reduced, Trend reports referring to the Azerbaijani Ministry of Taxes.
In accordance with the Action Plan approved upon the resolution of the Cabinet of Ministers on April 4, 2020, the Azerbaijani Ministry of Taxes has been tasked to provide entrepreneurs working in the spheres affected by the pandemic with tax benefits.
Current Azerbaijani legislation envisions a base payout of basic social insurance in the amount of 6 percent of the minimum wage for each able-bodied family member, regardless of the land area.
Given the increase in the minimum monthly wage up to 250 manat ($147), individuals who use a land plot of up to 5 hectares and farmlands and who are members of a family consisting of 4 persons should pay a monthly fee for mandatory state social insurance in the amount of 60 manat ($35.2).
The proposed changes to the social insurance legislation envisage compulsory state social insurance for each of the family members of the individuals using farmlands owned by them, and payment of the minimum monthly wage depending on the land area at the following rates:
2 percent per land of up to 5 hectares;
6 percent per land from 5 through 10 hectares;
10 percent per land above 10 hectares
So, individuals, who use a land plot of up to 5 hectares and farmlands and who are members of a family consisting of four persons, shall pay a monthly fee for compulsory state social insurance in the amount of 20 manat ($11.7) - 5 manat ($2.9) per each member.
It’s also envisioned to have land owners submit a fixed receipt instead of the social insurance report.
The package of proposals on tax incentives was widely discussed with the state structures, public organizations of entrepreneurs, including the National Confederation of Entrepreneurs (Employers’) Organizations, the Azerbaijan Banks Association, as well as with business entities operating in individual sectors within the working group created to assess the negative impact of the coronavirus pandemic (COVID-19) on the national economy.
In this regard, the Azerbaijani Ministry of Economy prepared the proposals on the necessary amendments to the Tax Code and the Azerbaijani law "On Social Insurance". After re-consideration in the government, draft documents included in the package of proposals were submitted to the Azerbaijani parliament.