12:33 - 6.11.2025

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November 6, Fineko/abc.az. The right to be a simplified tax payer will be determined in a new procedure.

ABC.AZ informs that this is reflected in the proposed amendment to the Tax Code, discussed at today’s meeting of the Parliamentary Committee on Economic Policy, Industry and Entrepreneurship.

According to the draft, when determining the volume of taxable transactions, taxpayer's turnover, formed on the basis of non-cash payments made through a POS-terminal when carrying out retail trade and providing services to persons who are not registered with the tax authority, will be taken into account using coefficient of 0.5.

Simplified tax payers can be persons who are not registered for VAT and have volume of taxable transactions in any month (months) of a 12-month period in the amount of 200,000 manats or less.

Thus, when determining the right to become a simplified tax payer, taxpayer's turnover will be taken into account, formed on the basis of payments made through a cashless POS-terminal for retail trade and services rendered to persons who are not registered with the tax authority, using coefficient of 0.5.

In other words, despite increase in prices for goods, services, and monetary incomes of the population after 2016, the established limit for simplified tax payers remained at 200,000 manats for any period of 12 months. Now it is planned to double this limit and bring it up to 400,000 manats, which will prevent tax evasion by small and medium-sized businesses and increase transparency.

The simplified tax will be calculated according to the object of taxation, formed on the basis of payments made through a POS-terminal in a non-cash manner for services rendered to the public, at rate of 6% for 3-year period from January 1, 2026. Thus, the simplified tax rate will be reduced from 8% to 6%. Non-cash payments must be made through a POS-terminal integrated into a single operating system with a cash register.

This will apply to taxable transactions made after January 1, 2026.