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Tax regulations for individuals starting entrepreneurial activity
Tax regulations for individuals starting entrepreneurial activity
According to Article 33.4 of the Tax Code, an individual engaged in entrepreneurial activity without establishing a legal entity must submit an application to the tax authority for tax registration (to obtain a Taxpayer Identification Number – TIN) before starting the business activity and must pay taxes on the income received to the state budget.
You can be registered for tax purposes by submitting the "Application for Individual Tax Registration" to the tax authority. Registration is carried out free of charge. It is processed at ASAN service centers, or in cities and districts where there are no ASAN service centers, at taxpayer service centers.
Tax obligations will be determined according to the tax regime selected in the application submitted during registration and the taxable objects that arise (simplified tax, income tax, VAT).
If the individual chooses the simplified taxation system, a 2% simplified tax is calculated and paid to the state budget on the income received from trade activities (on total turnover without deducting expenses).
If the activity is carried out under the income tax system, then after deducting the expenses incurred in obtaining the income, a 20% income tax is calculated and paid to the state budget on the remaining amount.
If you qualify as a micro-entrepreneur (having an average number of employees between 1–10 and annual income not exceeding 200,000 manats), you may benefit from a 75% tax discount by keeping records of income and expenses.
According to Article 33.4 of the Tax Code, an individual engaged in entrepreneurial activity without establishing a legal entity must submit an application to the tax authority for tax registration (to obtain a Taxpayer Identification Number – TIN) before starting the business activity and must pay taxes on the income received to the state budget.
You can be registered for tax purposes by submitting the "Application for Individual Tax Registration" to the tax authority. Registration is carried out free of charge. It is processed at ASAN service centers, or in cities and districts where there are no ASAN service centers, at taxpayer service centers.
Tax obligations will be determined according to the tax regime selected in the application submitted during registration and the taxable objects that arise (simplified tax, income tax, VAT).
If the individual chooses the simplified taxation system, a 2% simplified tax is calculated and paid to the state budget on the income received from trade activities (on total turnover without deducting expenses).
If the activity is carried out under the income tax system, then after deducting the expenses incurred in obtaining the income, a 20% income tax is calculated and paid to the state budget on the remaining amount.
If you qualify as a micro-entrepreneur (having an average number of employees between 1–10 and annual income not exceeding 200,000 manats), you may benefit from a 75% tax discount by keeping records of income and expenses.