Azerbaijan is considering a five-year tax incentive for small businesses as part of proposed amendments to the Tax Code.
The draft would reduce personal income or corporate profit tax by 25% for taxpayers that have operated as small-business entities for at least two years and meet the required conditions.
Preliminary estimates indicate that about 10,000 taxpayers could qualify. The incentive would apply for five years.
Other Tax Changes Under Discussion
The broader package also includes proposed excise taxes on chips and sweetened mineral and carbonated drinks, a fixed 15-manat tax for certain courier activities and a 1% simplified tax withheld from taxi drivers’ income through order operators and digital platforms.
Another proposal would change value-added tax treatment for authorized automobile dealers. When reselling used vehicles no more than five years old that were purchased cashlessly from individuals, VAT would be calculated on the dealer’s margin rather than the vehicle’s entire resale price. The draft provides for that system to operate for three years.
Lawmakers also raised the possibility of exempting the minimum wage from taxation, but that was a discussion proposal rather than a confirmed provision.
None of the measures is in force merely because it was discussed. Final eligibility rules and effective dates will depend on the legislation adopted and enacted.
Source: Vesti Baku