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The contradiction between labor legislation and the EMS subsystem has been resolved

  • Bloq
  • 28-Feb-2025, 09:23
  • 59
The contradiction between labor legislation and the EMS subsystem has been resolved

The contradiction between labor legislation and the EMS subsystem has been resolved


We had previously informed you that some operations carried out in the EMS subsystem were not in compliance with the subsystem itself. It is encouraging to note that in recent times, efforts have been made to eliminate these inconsistencies. One of the recent changes is the imposition of a restriction on individual entrepreneurs signing labor contracts with themselves in the EMS subsystem.

Prior to the recent changes, although individual entrepreneurs acted as employers, there were no restrictions on signing any labor contract with themselves in the EMS subsystem. However, when an individual entrepreneur signed a labor contract with themselves under the status of “employee” in the EMS subsystem, it created issues in terms of both labor legislation and tax legislation.

According to tax legislation, micro-entrepreneurs with 3 employees are entitled to a 75% tax discount on income tax. However, the status of "employee" in the EMS subsystem for an individual entrepreneur did not meet the requirement of 3 employees in tax legislation. This gap also caused problems in the proper application of tax legislation.

Taking all these factors into account, those responsible for implementing the EMS subsystem decided to impose a restriction on individual entrepreneurs signing labor contracts with themselves under the "employee" status.

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About Us

“AZE Consulting” LLC started its activities in September 2019. Since the day it started its activities, the company has been providing tax, accounting services, and establishment of accounting systems, financial reporting, legal and migration services, personnel record management, human resources management, and occupational safety services to companies operating in various fields.

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