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Azerbaijan exempts 75% of the income of a number of micro-entrepreneurs from tax

01 January 2025 11:06 (UTC +04:00)

Starting today, individuals who are micro-entrepreneurs operating in a number of service areas with an annual turnover of up to 45 thousand manats will be exempt from tax on 75 percent of their income without any conditions (the requirement of having 3 employees and no debt on compulsory state social insurance contributions), it is was reflected in the amendments to the Tax Code approved by President Ilham Aliyev, APA reports.

The mentioned service areas are as follows:

- Software development;

- Services in the field of project design and decoration;

- Translation services;

- Advertising services;

- Research and investigation activities;

- Services provided in the field of science, education, culture and sports;

- Consulting services in the field of law, independent auditor, accounting and finance;

- Journalist activities;

- Market research;

- Valuation activities;

- Delivery of orders and courier services, except for freight transportation by motor vehicles;

- Tourist guidance;

- Export services.

It should be noted that from January 1 of this year, in accordance with Article 102.1.30 of the Tax Code, 75 percent of the income earned from entrepreneurial activities by individual entrepreneurs who are micro-entrepreneurs with an average monthly number of employees for the relevant year and no debt on mandatory state social insurance contributions has been exempted from income tax.

Let us add that the proposed benefits apply only to individuals, while legal entities will be able to use the benefits after fulfilling the conditions in the previous order (i.e. having an average monthly number of employees for the year of no less than 3 and no debt on mandatory state social insurance contributions).