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trIs a 75% income tax exemption applied to income earned from YouTube through Google AdSense?
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Is a 75% income tax exemption applied to income earned from YouTube through Google AdSense?
Carrying out activities on the YouTube platform and earning income through Google AdSense is considered an entrepreneurial activity. Therefore, the individual must register as a taxpayer before commencing the activity.
According to Article 102.1.30-1 of the Tax Code, 75% of the income earned by individuals from the types of activities specified in that article is exempt from income tax if their annual income does not exceed AZN 45,000. However, this exemption does not apply to income derived from transactions without the supply of goods. If an individual is also engaged in other activities, the income from the activity eligible for the exemption must account for at least 50% of their total annual income in order to qualify for the exemption.
Where annual income does not exceed AZN 45,000, having 3 employees is not a mandatory condition for benefiting from the 75% tax exemption. Therefore, an individual carrying out the activity alone may also benefit from this exemption, provided that the activity qualifies as an advertising service under Article 102.1.30-1 of the Tax Code.
At the same time, the applicable tax regime must also be taken into consideration. Under Article 218.5.10 of the Tax Code, persons performing works or providing services are restricted from applying the simplified tax regime in certain cases. Since the income earned through Google AdSense from YouTube activities is paid by a legal entity, the 2% simplified tax rate cannot be applied to this activity.
Therefore, an individual operating as a sole proprietor may benefit from the 75% income tax exemption, provided that the activity meets the criteria for an advertising service established by the legislation and all other applicable requirements are satisfied. Where annual income does not exceed AZN 45,000, having 3 employees is not mandatory for benefiting from this exemption.
Carrying out activities on the YouTube platform and earning income through Google AdSense is considered an entrepreneurial activity. Therefore, the individual must register as a taxpayer before commencing the activity.
According to Article 102.1.30-1 of the Tax Code, 75% of the income earned by individuals from the types of activities specified in that article is exempt from income tax if their annual income does not exceed AZN 45,000. However, this exemption does not apply to income derived from transactions without the supply of goods. If an individual is also engaged in other activities, the income from the activity eligible for the exemption must account for at least 50% of their total annual income in order to qualify for the exemption.
Where annual income does not exceed AZN 45,000, having 3 employees is not a mandatory condition for benefiting from the 75% tax exemption. Therefore, an individual carrying out the activity alone may also benefit from this exemption, provided that the activity qualifies as an advertising service under Article 102.1.30-1 of the Tax Code.
At the same time, the applicable tax regime must also be taken into consideration. Under Article 218.5.10 of the Tax Code, persons performing works or providing services are restricted from applying the simplified tax regime in certain cases. Since the income earned through Google AdSense from YouTube activities is paid by a legal entity, the 2% simplified tax rate cannot be applied to this activity.
Therefore, an individual operating as a sole proprietor may benefit from the 75% income tax exemption, provided that the activity meets the criteria for an advertising service established by the legislation and all other applicable requirements are satisfied. Where annual income does not exceed AZN 45,000, having 3 employees is not mandatory for benefiting from this exemption.