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How is the average number of salaried employees per month determined?
How is the average number of salaried employees per month determined?
Until August, I had no activity. At the end of August, I provided a service with an electronic invoice, and since 100% of my income was invoiced, I am a payer of income tax. I will hire 3 employees in September. In this case, will I be able to benefit from a 75% discount on the electronic invoice I issued for sales in August by the end of the year?
The State Tax Service under the Ministry of Economy has reported that, according to the Law of the Republic of Azerbaijan No. 1033-VIQD dated December 5, 2023, "On Amendments to the Tax Code of the Republic of Azerbaijan" and the Decree of the President of the Republic of Azerbaijan regulating a number of issues arising from these amendments, these changes came into force on January 1, 2024.
According to Article 106.1.20 of the Tax Code, a 75% discount is applied to the income from entrepreneurial activities of legal entities that are micro-entrepreneurship subjects, have no debt on mandatory state social insurance contributions, and have an average monthly number of salaried employees of not less than 3 for the relevant year.
The average monthly number of salaried employees for the relevant year is determined by summing the number of salaried employees during the calendar year and dividing by 12.
If the taxpayer does not meet the conditions set forth in this article for the application of the tax benefit and moves from a micro-entrepreneurship subject to another category in the next reporting year, a tax benefit of 75% of the income tax calculated and paid for the previous 3 calendar years is applied, with the deduction of corporate tax obligations for periods when the entity was a different type of enterprise.
If the taxpayer carries out transactions without goods, the tax benefit provided for in this article does not apply to income arising from such transactions.
In response to the inquiry, it is reported that, for the application of Articles 102.1.30 and 106.1.20 of the Tax Code, the average monthly number of salaried employees is determined according to the period of actual activity.
Until August, I had no activity. At the end of August, I provided a service with an electronic invoice, and since 100% of my income was invoiced, I am a payer of income tax. I will hire 3 employees in September. In this case, will I be able to benefit from a 75% discount on the electronic invoice I issued for sales in August by the end of the year?
The State Tax Service under the Ministry of Economy has reported that, according to the Law of the Republic of Azerbaijan No. 1033-VIQD dated December 5, 2023, "On Amendments to the Tax Code of the Republic of Azerbaijan" and the Decree of the President of the Republic of Azerbaijan regulating a number of issues arising from these amendments, these changes came into force on January 1, 2024.
According to Article 106.1.20 of the Tax Code, a 75% discount is applied to the income from entrepreneurial activities of legal entities that are micro-entrepreneurship subjects, have no debt on mandatory state social insurance contributions, and have an average monthly number of salaried employees of not less than 3 for the relevant year.
The average monthly number of salaried employees for the relevant year is determined by summing the number of salaried employees during the calendar year and dividing by 12.
If the taxpayer does not meet the conditions set forth in this article for the application of the tax benefit and moves from a micro-entrepreneurship subject to another category in the next reporting year, a tax benefit of 75% of the income tax calculated and paid for the previous 3 calendar years is applied, with the deduction of corporate tax obligations for periods when the entity was a different type of enterprise.
If the taxpayer carries out transactions without goods, the tax benefit provided for in this article does not apply to income arising from such transactions.
In response to the inquiry, it is reported that, for the application of Articles 102.1.30 and 106.1.20 of the Tax Code, the average monthly number of salaried employees is determined according to the period of actual activity.