Azerbaijan to introduce tax benefits for non-oil sector workers


November 16, Fineko/ Tax Minister Mikayil Jabbarov told about the amendments proposed to the tax legislation.

According to the minister, one of the priority directions of tax reforms is to reduce the tax burden of workers in the private non-oil sector.

"The amendments provide for exemption from payment of income tax for employees with a monthly salary of up to 8,000 manats. The income tax of citizens with a salary above 8,000 manats will be charged at a rate of 14%," the minister said.

According to the minister, it is also proposed to combine income tax for individuals with social contributions that will simplify the process for employers.

"The government is consciously agree on such benefits and loses part of its income, as this will lead to a decrease in the shadow economy, prevention of illegal employment, provision of pension rights of citizens," the minister said.

Jabbarov said that according to the current legislation, the income tax of employees receiving salaries up to 173 manats is 0%, up to 2,500 manats - 14%, over 2,500 manats – 25%.

It is proposed to cut the tax on wages in the amount of 2,500-8,000 manats from 14% to 0% and cut the tax on wages exceeding 8,000 manats from 25% to 14%.