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Is the prize won in the knowledge contest taxable?
Is the prize won in the knowledge contest taxable?
I have won a monetary (cash) prize from an in-country knowledge competition. But I don't know what taxes I will pay on that amount. What percentage of this award is taxable? If tax is payable at source, from whom and how is this tax collected?
The State Tax Service under the Ministry of Economy reported that according to Article 101.5 of the Tax Code, from the winnings (prizes) obtained in the form of money from sports betting games, lotteries, as well as other competitions and contests, after deducting the money (investment) paid in connection with participation (Azerbaijan With the exception of cash from betting games, lotteries, competitions and contests organized outside the borders of the Republic) tax is charged at the rate of 10 percent.
According to Article 102.1.15 of the Tax Code, the full value of prizes received in the form of items in competitions and competitions, the value of prizes received in the form of money in international competitions (except sports competitions) and competitions is up to 4000 manats, in republican, regional, city and district competitions (except sports competitions including) and contests are exempt from income tax up to 200 manats.
According to Article 150.1.11 of the Tax Code, income (prize) from sports betting games, lotteries, other competitions and contests is paid by resident legal entities and individual entrepreneurs, and those incomes are paid by non-resident individuals who do not have permanent representation in the Republic of Azerbaijan. when paid, tax must be withheld at the source of payment by the local payment service provider or foreign payment service provider's branch in the Republic of Azerbaijan where the recipient of this income has a bank or other payment account.
I have won a monetary (cash) prize from an in-country knowledge competition. But I don't know what taxes I will pay on that amount. What percentage of this award is taxable? If tax is payable at source, from whom and how is this tax collected?
The State Tax Service under the Ministry of Economy reported that according to Article 101.5 of the Tax Code, from the winnings (prizes) obtained in the form of money from sports betting games, lotteries, as well as other competitions and contests, after deducting the money (investment) paid in connection with participation (Azerbaijan With the exception of cash from betting games, lotteries, competitions and contests organized outside the borders of the Republic) tax is charged at the rate of 10 percent.
According to Article 102.1.15 of the Tax Code, the full value of prizes received in the form of items in competitions and competitions, the value of prizes received in the form of money in international competitions (except sports competitions) and competitions is up to 4000 manats, in republican, regional, city and district competitions (except sports competitions including) and contests are exempt from income tax up to 200 manats.
According to Article 150.1.11 of the Tax Code, income (prize) from sports betting games, lotteries, other competitions and contests is paid by resident legal entities and individual entrepreneurs, and those incomes are paid by non-resident individuals who do not have permanent representation in the Republic of Azerbaijan. when paid, tax must be withheld at the source of payment by the local payment service provider or foreign payment service provider's branch in the Republic of Azerbaijan where the recipient of this income has a bank or other payment account.