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Ban! Which organization will cancel the life savings insurance benefits of its employees?
Ban! Which organization will cancel the life savings insurance benefits of its employees?
According to Article 102.1.8 of the Tax Code, insurance premiums paid by the employer to the insurers of the Republic of Azerbaijan for life savings insurance and pension insurance with a contract concluded for a period of not less than 3 years, not exceeding 50 percent of the insured's taxable income, and any amounts paid to the insured and the beneficiary after a period of 3 years from the date of entry into force of the life savings insurance and pension insurance contract, are exempt from income tax.
The proposed amendment to the Tax Code provides that only employers belonging to the non-state sector will benefit from the 50 percent discount on insurance premiums provided for in Article 102.1.8 of the Tax Code. If the amendment is approved, the 50 percent discount will be canceled for employees working for employers belonging to the state sector from January 1, 2025, and the full amount will be subject to income tax.
According to Article 102.1.8 of the Tax Code, insurance premiums paid by the employer to the insurers of the Republic of Azerbaijan for life savings insurance and pension insurance with a contract concluded for a period of not less than 3 years, not exceeding 50 percent of the insured's taxable income, and any amounts paid to the insured and the beneficiary after a period of 3 years from the date of entry into force of the life savings insurance and pension insurance contract, are exempt from income tax.
The proposed amendment to the Tax Code provides that only employers belonging to the non-state sector will benefit from the 50 percent discount on insurance premiums provided for in Article 102.1.8 of the Tax Code. If the amendment is approved, the 50 percent discount will be canceled for employees working for employers belonging to the state sector from January 1, 2025, and the full amount will be subject to income tax.