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What are exemptions from compulsory state social insurance contributions?
What are exemptions from compulsory state social insurance contributions?
Exemptions from compulsory state social insurance contributions are outlined in Article 15 of the Law on Social Insurance. These include:
- Allowances given to employees working in outdoor organizations with regular travel time or those whose work is of a mobile nature (field workers), in place of daily travel expenses during business trips;
- Reimbursement of actual travel expenses, as well as per diem payments to members of the maritime crew for travel expenses determined by the relevant executive authority and other business expenses (costs of bringing guests to the meeting place and returning them, organizing banquets for guests in public catering establishments, costs of purchasing ready-made meals for these events, and interpreter fees for meetings);
- Lump-sum payments made when a labor contract is terminated due to the liquidation of the company, reduction in the number of employees, downsizing, or the death of an employee;
- The value of free preventive meals, milk, and other products equivalent to milk, provided to employees working in harmful, heavy conditions or underground jobs, as well as the cost of special clothing, special footwear, and other personal protective equipment provided to employees in specified periods and types;
- Scholarships paid to students, doctoral students, and master’s degree students sent for education, funded by the institution or organization;
- One-time aid provided by the relevant executive authorities based on their decisions regarding natural disasters and other emergencies, as well as aid provided by foreign countries and organizations;
- Alimony payments, fees for blood and blood components during donation;
- Amounts of social insurance payments made from mandatory state social insurance contributions;
- State pensions and state benefits provided from the state budget funds based on the laws of the Republic of Azerbaijan and decisions of the relevant executive authorities;
- Insurance payments made in the form of cash or in-kind compensation for damage to the insured's property or property rights during an insurance event, as well as all types of mandatory insurance and voluntary medical insurance premiums paid by the insurer, life and pension insurance premiums paid to insurance companies in Azerbaijan by the insured, not exceeding 50% of the insured's income, under a contract for life insurance and pension insurance for a period of no less than three years, and any amounts paid to the insured or beneficiary after a 3-year period from the start of the contract;
- Income not related to salaried work or business activities (interest income, dividends, income from leasing property, royalties (except for authors' royalties), income from the provision of assets not used for business purposes, gifts and inheritance amounts, winnings from betting on sports, lotteries, as well as other competitions and sweepstakes);
- The value of prizes received in kind or cash in competitions and contests;
- A one-time payment to a civil servant upon voluntary retirement due to reaching pension age;
- Benefits paid to employees for temporary loss of working ability, covered by the insurer's funds;
- Compensation paid to employees sent to work in other places by state bodies for relocation and accommodation costs;
- Allowances, compensations, and monthly salaries paid to diplomatic service staff and administrative-technical personnel of diplomatic service bodies, in accordance with the Law on Diplomatic Service of the Republic of Azerbaijan, Articles 21 and 23.2, and salaries of military personnel assigned to protect Azerbaijani diplomatic missions and consulates abroad;
- The salary fund for foreigners formed under humanitarian programs financed by donor countries, organizations, and private companies, coordinated through relevant executive bodies, and organized by international, local humanitarian and development organizations (insurers);
- Payments made as compensation for damages incurred by employees due to occupational injuries or other health impairments;
- Financial assistance provided by public organizations, charities, and foundations;
- Salaries, bonuses, and other material support paid to individuals cooperating with operational-search subjects, as well as those assisting intelligence and counterintelligence operations;
- Material support paid by the relevant executive authority's designated body (organization);
- Income obtained as a result of social expenses incurred by the insurer's employees, including amounts paid to third parties.
Exemptions from compulsory state social insurance contributions are outlined in Article 15 of the Law on Social Insurance. These include:
- Allowances given to employees working in outdoor organizations with regular travel time or those whose work is of a mobile nature (field workers), in place of daily travel expenses during business trips;
- Reimbursement of actual travel expenses, as well as per diem payments to members of the maritime crew for travel expenses determined by the relevant executive authority and other business expenses (costs of bringing guests to the meeting place and returning them, organizing banquets for guests in public catering establishments, costs of purchasing ready-made meals for these events, and interpreter fees for meetings);
- Lump-sum payments made when a labor contract is terminated due to the liquidation of the company, reduction in the number of employees, downsizing, or the death of an employee;
- The value of free preventive meals, milk, and other products equivalent to milk, provided to employees working in harmful, heavy conditions or underground jobs, as well as the cost of special clothing, special footwear, and other personal protective equipment provided to employees in specified periods and types;
- Scholarships paid to students, doctoral students, and master’s degree students sent for education, funded by the institution or organization;
- One-time aid provided by the relevant executive authorities based on their decisions regarding natural disasters and other emergencies, as well as aid provided by foreign countries and organizations;
- Alimony payments, fees for blood and blood components during donation;
- Amounts of social insurance payments made from mandatory state social insurance contributions;
- State pensions and state benefits provided from the state budget funds based on the laws of the Republic of Azerbaijan and decisions of the relevant executive authorities;
- Insurance payments made in the form of cash or in-kind compensation for damage to the insured's property or property rights during an insurance event, as well as all types of mandatory insurance and voluntary medical insurance premiums paid by the insurer, life and pension insurance premiums paid to insurance companies in Azerbaijan by the insured, not exceeding 50% of the insured's income, under a contract for life insurance and pension insurance for a period of no less than three years, and any amounts paid to the insured or beneficiary after a 3-year period from the start of the contract;
- Income not related to salaried work or business activities (interest income, dividends, income from leasing property, royalties (except for authors' royalties), income from the provision of assets not used for business purposes, gifts and inheritance amounts, winnings from betting on sports, lotteries, as well as other competitions and sweepstakes);
- The value of prizes received in kind or cash in competitions and contests;
- A one-time payment to a civil servant upon voluntary retirement due to reaching pension age;
- Benefits paid to employees for temporary loss of working ability, covered by the insurer's funds;
- Compensation paid to employees sent to work in other places by state bodies for relocation and accommodation costs;
- Allowances, compensations, and monthly salaries paid to diplomatic service staff and administrative-technical personnel of diplomatic service bodies, in accordance with the Law on Diplomatic Service of the Republic of Azerbaijan, Articles 21 and 23.2, and salaries of military personnel assigned to protect Azerbaijani diplomatic missions and consulates abroad;
- The salary fund for foreigners formed under humanitarian programs financed by donor countries, organizations, and private companies, coordinated through relevant executive bodies, and organized by international, local humanitarian and development organizations (insurers);
- Payments made as compensation for damages incurred by employees due to occupational injuries or other health impairments;
- Financial assistance provided by public organizations, charities, and foundations;
- Salaries, bonuses, and other material support paid to individuals cooperating with operational-search subjects, as well as those assisting intelligence and counterintelligence operations;
- Material support paid by the relevant executive authority's designated body (organization);
- Income obtained as a result of social expenses incurred by the insurer's employees, including amounts paid to third parties.