According to Article 101.1-1 of the Tax Code, if the monthly income of individuals working outside the oil and gas sector and the public sector is up to 8,000 manats, no income tax is withheld from them. This rule has been applied since January 1, 2019 – for nearly seven years. Article 101.1-1 of the Code envisages the application of the rule precisely for seven years. This means that from January 1, 2026, income tax will also begin to be withheld from individuals working outside the oil and gas sector and the public sector, whose monthly income is up to 8,000 manats. Reports about this are already spreading in the media.
Should the duration of the concession envisaged in Article 101.1-1 of the Tax Code be extended?
Answering the question from Medianews.az, former Minister of Finance, Chairman of the "Ekonomiks" International Economic Research Association, Doctor of Economics, Professor Fikret Yusifov first recalled that the mentioned concession was applied by the Azerbaijani government to support those working in the non-oil sector: "There are only a few months left until the concession expires. What does the government think, will the concession period be extended, or will the concession be canceled because the period has ended? In any case, the final word will be said by the government. According to the information I have obtained, the government has not yet fully formed its position on the matter, but discussions are ongoing. I believe that in the coming days, the government will disclose its position on this issue to the public."
I believe that under the current circumstances, the cancellation of such tax concessions is not very desirable for small and medium businesses. On the contrary, more consideration should be given to reducing the tax burden on businesses in this area, primarily small and medium entrepreneurs."
Nailə Qasımova,
Medianews.az
