Starting next year, 75% of the income earned by individual micro-entrepreneurs operating in certain service sectors, whose annual turnover does not exceed AZN 45,000, will be exempt from taxation without any conditions (such as having no more than three employees and compulsory state social insurance), this was reflected in the proposed amendments to the Tax Code, which was discussed at today's meeting of the Milli Majlis (Parliament), APA reports.
The sectors covered include:
- Software development;
- Project design and decoration services;
- Translation services;
- Advertising services;
- Research and analysis activities;
- Services in science, education, culture, and sports;
- Legal, independent audit, accounting, and financial consulting services;
- Journalism;
- Market research;
- Valuation activities;
- Courier services, excluding cargo transportation with vehicles;
- Tourism guiding;
- Export services.
Recall that starting from January 1 of this year, under Article 102.1.30 of the Tax Code, micro-entrepreneurs whose average monthly number of employees does not exceed three and who have no mandatory state social insurance liabilities are exempt from income tax on 75% of their income.
The proposed tax exemptions will apply only to individual entrepreneurs. Legal entities must continue to meet the conditions (such as having at least three employees and no outstanding state social insurance liabilities) to benefit from these exemptions.
If the law is adopted, it will come into force on January 1, 2025.
The draft law was put to a vote and adopted in the first reading.
