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Are medical expenses deductible from income?
Are medical expenses deductible from income?
We inform you that, in accordance with Article 102.1.3.1 of the Tax Code, the portion of financial assistance or a one-time allowance paid for medical expenses, including surgical operations, up to 10,000 AZN within the country and up to 50,000 AZN abroad, is not subject to taxation. This tax exemption is granted to individuals who have received financial assistance or a one-time allowance for covering medical expenses (including surgery) provided that they submit relevant documents confirming that the funds were used for their intended purpose.
According to Article 108.1 of the Tax Code, except for expenses that are not deductible under this chapter, all expenses related to the generation of income, as well as mandatory payments stipulated by law, are deductible from income. Deductible expenses must be properly documented in accordance with the law. Expenses that are not documented in the legally prescribed manner are not allowed to be deducted.
The mentioned expense is considered a non-commercial activity expense under Article 109.2 of the Tax Code and therefore is not deductible from income.
We inform you that, in accordance with Article 102.1.3.1 of the Tax Code, the portion of financial assistance or a one-time allowance paid for medical expenses, including surgical operations, up to 10,000 AZN within the country and up to 50,000 AZN abroad, is not subject to taxation. This tax exemption is granted to individuals who have received financial assistance or a one-time allowance for covering medical expenses (including surgery) provided that they submit relevant documents confirming that the funds were used for their intended purpose.
According to Article 108.1 of the Tax Code, except for expenses that are not deductible under this chapter, all expenses related to the generation of income, as well as mandatory payments stipulated by law, are deductible from income. Deductible expenses must be properly documented in accordance with the law. Expenses that are not documented in the legally prescribed manner are not allowed to be deducted.
The mentioned expense is considered a non-commercial activity expense under Article 109.2 of the Tax Code and therefore is not deductible from income.