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Employees who earn a salary will also be required to pay income tax
Employees who earn a salary will also be required to pay income tax
Those with a monthly income of up to 2,500 AZN will pay 3% tax in 2026, 5% in 2027, and 7% from 2028 onwards.
Due to the expiration on January 1, 2026, of the income tax exemption that has been in effect since 2019 for employees working in the non-oil and non-state sectors in Azerbaijan, taxes on the monthly income of individuals from salaried work will be withheld according to new rules.
According to the draft, in 2026, those with a monthly income of up to 2,500 AZN will pay 3%, in 2027 — 5%, and from 2028 — 7%.
For those with a monthly income between 2,500 and 8,000 AZN, the tax will be: in 2026: 75 AZN + 10% of the amount exceeding 2,500 AZN; in 2027: 125 AZN + 10% of the amount exceeding 2,500 AZN; from 2028: 175 AZN + 10% of the amount exceeding 2,500 AZN.
For those with a monthly income exceeding 8,000 AZN, the tax will be:
in 2026: 625 AZN + 14% of the amount exceeding 8,000 AZN; in 2027: 675 AZN + 14% of the amount exceeding 8,000 AZN; from 2028: 725 AZN + 14% of the amount exceeding 8,000 AZN.
It should be noted that for individuals working for taxpayers not involved in the oil and gas sector and classified under the non-state sector, the tax on monthly income from salaried work has been 0% for income up to 8,000 AZN and 14% for income exceeding 8,000 AZN for a period of 7 years starting from January 1, 2019.
Those with a monthly income of up to 2,500 AZN will pay 3% tax in 2026, 5% in 2027, and 7% from 2028 onwards.
Due to the expiration on January 1, 2026, of the income tax exemption that has been in effect since 2019 for employees working in the non-oil and non-state sectors in Azerbaijan, taxes on the monthly income of individuals from salaried work will be withheld according to new rules.
According to the draft, in 2026, those with a monthly income of up to 2,500 AZN will pay 3%, in 2027 — 5%, and from 2028 — 7%.
For those with a monthly income between 2,500 and 8,000 AZN, the tax will be: in 2026: 75 AZN + 10% of the amount exceeding 2,500 AZN; in 2027: 125 AZN + 10% of the amount exceeding 2,500 AZN; from 2028: 175 AZN + 10% of the amount exceeding 2,500 AZN.
For those with a monthly income exceeding 8,000 AZN, the tax will be:
in 2026: 625 AZN + 14% of the amount exceeding 8,000 AZN; in 2027: 675 AZN + 14% of the amount exceeding 8,000 AZN; from 2028: 725 AZN + 14% of the amount exceeding 8,000 AZN.
It should be noted that for individuals working for taxpayers not involved in the oil and gas sector and classified under the non-state sector, the tax on monthly income from salaried work has been 0% for income up to 8,000 AZN and 14% for income exceeding 8,000 AZN for a period of 7 years starting from January 1, 2019.