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How is tax applied to the amounts paid and received under life savings insurance?
How is tax applied to the amounts paid and received under life savings insurance?
We hereby inform you that according to Article 99.3.9 of the Tax Code, the difference between the insurance premiums paid by the insured person (or paid on their behalf) and the insurance payments received under life savings insurance is considered non-entrepreneurial income of the individual.
According to Article 102.1.8 of the Tax Code, insurance premiums paid to insurers of the Republic of Azerbaijan under a life savings or pension insurance contract concluded for a period of not less than three years, from no more than 50% of the taxable income of the insured paid by an employer in the non-state sector, as well as any amounts paid to the insured or beneficiary after the three-year period from the date the insurance contract enters into force, are exempt from income tax.
According to Article 116.3 of the Tax Code, if the insurance contract is terminated prematurely, the insurance premiums paid are subject to tax at the source of payment by the insurer.
Please note that under Article 123.4 of the Tax Code, income received in the form of the difference between the insurance premiums paid by the insured (or on their behalf) and the insurance payments under life savings insurance is taxed at a rate of 10% at the source of payment.
We hereby inform you that according to Article 99.3.9 of the Tax Code, the difference between the insurance premiums paid by the insured person (or paid on their behalf) and the insurance payments received under life savings insurance is considered non-entrepreneurial income of the individual.
According to Article 102.1.8 of the Tax Code, insurance premiums paid to insurers of the Republic of Azerbaijan under a life savings or pension insurance contract concluded for a period of not less than three years, from no more than 50% of the taxable income of the insured paid by an employer in the non-state sector, as well as any amounts paid to the insured or beneficiary after the three-year period from the date the insurance contract enters into force, are exempt from income tax.
According to Article 116.3 of the Tax Code, if the insurance contract is terminated prematurely, the insurance premiums paid are subject to tax at the source of payment by the insurer.
Please note that under Article 123.4 of the Tax Code, income received in the form of the difference between the insurance premiums paid by the insured (or on their behalf) and the insurance payments under life savings insurance is taxed at a rate of 10% at the source of payment.