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Tax obligations of an employee working in two positions in the public sector
Tax obligations of an employee working in two positions in the public sector
How is income tax calculated for an employee working in two positions (both positions in the public sector)?
The State Tax Service under the Ministry of Economy has stated that, regardless of the criteria, income tax must be calculated separately for each job — primary and secondary. Specifically, when employees working in public or oil sector enterprises have a salary up to 2,500 manats, 14% income tax is applied. If the salary exceeds 2,500 manats, 25% income tax is charged on the amount exceeding 2,500 manats.
Additionally, according to Article 102.1.6 of the Tax Code, if the monthly income of an individual at their primary workplace (where the work book is held) from any salaried work is up to 2,500 manats, 200 manats is exempt from income tax, and if their annual income is up to 30,000 manats, the portion up to 2,400 manats is also exempt from income tax.
Furthermore, it should be noted that, according to Article 102.8 of the Tax Code, when calculating the income tax, the tax benefits for individuals listed in this article are applied only after the relevant documents confirming these benefits are submitted, and only at the individual’s primary workplace.
If an individual has the status that entitles them to tax benefits but submits the relevant documents confirming the benefits only after their employment contract (agreement) becomes legally effective, the tax benefit will be applied from the date the employment contract (agreement) becomes legally effective.
How is income tax calculated for an employee working in two positions (both positions in the public sector)?
The State Tax Service under the Ministry of Economy has stated that, regardless of the criteria, income tax must be calculated separately for each job — primary and secondary. Specifically, when employees working in public or oil sector enterprises have a salary up to 2,500 manats, 14% income tax is applied. If the salary exceeds 2,500 manats, 25% income tax is charged on the amount exceeding 2,500 manats.
Additionally, according to Article 102.1.6 of the Tax Code, if the monthly income of an individual at their primary workplace (where the work book is held) from any salaried work is up to 2,500 manats, 200 manats is exempt from income tax, and if their annual income is up to 30,000 manats, the portion up to 2,400 manats is also exempt from income tax.
Furthermore, it should be noted that, according to Article 102.8 of the Tax Code, when calculating the income tax, the tax benefits for individuals listed in this article are applied only after the relevant documents confirming these benefits are submitted, and only at the individual’s primary workplace.
If an individual has the status that entitles them to tax benefits but submits the relevant documents confirming the benefits only after their employment contract (agreement) becomes legally effective, the tax benefit will be applied from the date the employment contract (agreement) becomes legally effective.