Individual entrepreneurs receive tax benefits in Azerbaijan

By  Trend

Since January 2019, new income tax benefits have entered into force for individual entrepreneurs in Azerbaijan, Trend reports.

Benefits will be valid only for entrepreneurs engaged in retail trade. They will be exempt from income tax in the amount of 25 percent of the volume of non-cash sales within three years.

For example, the total income of an entrepreneur is 1,000 manats, including 800 manats earned from non-cash sales, and the total expenditures amount to 700 manats. As a result, there is an income of 300 manats, and from this amount, excluding benefits, the entrepreneur must pay income tax of 60 manats (1000-700 =300x20 percent [income tax rate]).

After applying benefits, the amount that the entrepreneur will have to pay as income tax will be 48 manats (800 manats [non-cash turnover]/1000 manats [total income] = 0.8 [specific weight] x 25 percent = 0.2x60 manats = 12 manats).

(1.7 manats = 1 USD on Jan. 3)