16:49 - 9.04.2019

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April 9, Fineko/abc.az. In accord with Article 99.3.11 of the Tax Code, the payments received from the services of persons engaged in advocacy, belong to the group of income from non-commercial activity.

In compliance with Article 101 of the Tax Code, lawyers engaged in private activity pay taxes at interest rate of 14% of the annual income from non-commercial activity. Members of the Bar must pay a mandatory state social insurance contribution of 20 % of their income.

Taxes and obligatory contributions of the state social insurance of lawyers who carry out activity in law offices are paid by relevant bodies.
Besides, if lawyers who conduct activity privately pay annually a tax on their income, reports and payments of lawyers who carry out activity in lawyer’s office are made quarterly. Although, eventually, the same interest rate is applied indeed, as due to the fact that the payments deducted on Article 150.1.7 of the Tax Code to 14% of taxes from income of up to 2,500 manats, envisaged by Article 101.1 of the Code, the lawyer in the case of transfer of the service fee over 2,500 manats to the account of the lawyer’s office, whose member he is, income tax should also be calculated from 25% of the upper part.

At that, the compulsory state social insurance of lawyers in accord with Article 14.5.2 of the Law on Social Insurance is deducted from part of 25% of the income determined by employees on contracts of civil nature.