en
What are the legal requirements regarding cashless payments for taxpayers?
What are the legal requirements regarding cashless payments for taxpayers?
We inform you that, in accordance with Article 3.3 of the Law on Cashless Settlements, and taking into account the provisions of Article 3.5 of this Law, payments must be made exclusively in a cashless manner by: VAT-registered taxpayers engaged in trade and/or public catering activities whose taxable transactions exceed 200,000 manats in any month(s) within a consecutive 12-month period, if during a calendar month the total amount of transactions exceeds 2% of the turnover (including VAT) of goods, works, or services provided in the previous calendar month;
Other taxpayers, if the total amount of transactions during a calendar month exceeds 15,000 manats. In the case where 2% of the turnover (including VAT) of goods, works, or services provided in the previous calendar month is less than 30,000 manats, cashless payments are mandatory for total transactions exceeding 30,000 manats in a calendar month. If this 2% exceeds 50,000 manats, cashless payments must be applied to all settlements exceeding 50,000 manats within that calendar month.
Please also note that, according to Article 3.3-1 of the Law, for individuals seasonally engaged in agricultural production under civil law contracts, the daily limit of cash payments per such individual is set at 20 manats. This amount is not included in the cash transaction limits defined under Article 3.3 of the Law.
Furthermore, when a legal entity engages an individual who is not registered with the tax authorities and does not provide a Taxpayer Identification Number (TIN) to perform services (except in cases where an employment contract is concluded), payments made to them are subject to withholding at the source in accordance with Article 150.1.7 of the Tax Code. In this case, 14% tax is withheld from the part of the monthly income up to 2,500 manats, and if the income exceeds 2,500 manats, an additional 350 manats must be added. For amounts exceeding 2,500 manats, 25% income tax is applied. Additionally, mandatory state social insurance contributions are withheld at a rate of 25% of the full payment amount, and mandatory health insurance premiums are withheld at a rate of 2% on the portion of income up to 8,000 manats and 1% on the portion exceeding 8,000 manats.
We inform you that, in accordance with Article 3.3 of the Law on Cashless Settlements, and taking into account the provisions of Article 3.5 of this Law, payments must be made exclusively in a cashless manner by: VAT-registered taxpayers engaged in trade and/or public catering activities whose taxable transactions exceed 200,000 manats in any month(s) within a consecutive 12-month period, if during a calendar month the total amount of transactions exceeds 2% of the turnover (including VAT) of goods, works, or services provided in the previous calendar month;
Other taxpayers, if the total amount of transactions during a calendar month exceeds 15,000 manats. In the case where 2% of the turnover (including VAT) of goods, works, or services provided in the previous calendar month is less than 30,000 manats, cashless payments are mandatory for total transactions exceeding 30,000 manats in a calendar month. If this 2% exceeds 50,000 manats, cashless payments must be applied to all settlements exceeding 50,000 manats within that calendar month.
Please also note that, according to Article 3.3-1 of the Law, for individuals seasonally engaged in agricultural production under civil law contracts, the daily limit of cash payments per such individual is set at 20 manats. This amount is not included in the cash transaction limits defined under Article 3.3 of the Law.
Furthermore, when a legal entity engages an individual who is not registered with the tax authorities and does not provide a Taxpayer Identification Number (TIN) to perform services (except in cases where an employment contract is concluded), payments made to them are subject to withholding at the source in accordance with Article 150.1.7 of the Tax Code. In this case, 14% tax is withheld from the part of the monthly income up to 2,500 manats, and if the income exceeds 2,500 manats, an additional 350 manats must be added. For amounts exceeding 2,500 manats, 25% income tax is applied. Additionally, mandatory state social insurance contributions are withheld at a rate of 25% of the full payment amount, and mandatory health insurance premiums are withheld at a rate of 2% on the portion of income up to 8,000 manats and 1% on the portion exceeding 8,000 manats.