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NEW Tax Benefits for Entrepreneurs in the Tax Code
NEW Tax Benefits for Entrepreneurs in the Tax Code
Promoting entrepreneurship, optimizing the tax burden, and strengthening the fight against the “shadow economy” constitute the main priorities of the proposed amendments to the Tax Code.
Starting from 2026, tax reductions, business support, and the stimulation of small and medium enterprises are planned. This was stated by Elnur Yusifov, Head of the Tax Legislation Department of the State Tax Service under the Ministry of Economy.
From next year, tax benefits currently applied to the liberated territories will also be extended to businesses operating in the Nakhchivan Autonomous Republic.
Additionally, tax exemptions applied to the production and sale of agricultural products (excluding land tax) will also cover the fishing sector, except for caviar production. The import and sale of organo-mineral fertilizers will also be exempt from VAT, reducing costs and increasing agricultural productivity.
In the public catering sector, key tax incentives are planned to promote cashless payments. Specifically, 50% of cashless turnover through POS terminals will be deducted from VAT-taxable turnover. For simplified taxpayers, the tax rate on cashless POS turnover will be reduced from 8% to 6%.
From next year, the VAT registration threshold will be increased to expand cashless transactions. The limit for cashless turnover in retail trade and services provided to unregistered individuals will rise from 200,000 to 400,000 AZN.
Furthermore, the tax rate on dividend income earned abroad by individuals will be reduced from 14% to 5% to improve the investment climate and boost capital inflow.
Promoting entrepreneurship, optimizing the tax burden, and strengthening the fight against the “shadow economy” constitute the main priorities of the proposed amendments to the Tax Code.
Starting from 2026, tax reductions, business support, and the stimulation of small and medium enterprises are planned. This was stated by Elnur Yusifov, Head of the Tax Legislation Department of the State Tax Service under the Ministry of Economy.
From next year, tax benefits currently applied to the liberated territories will also be extended to businesses operating in the Nakhchivan Autonomous Republic.
Additionally, tax exemptions applied to the production and sale of agricultural products (excluding land tax) will also cover the fishing sector, except for caviar production. The import and sale of organo-mineral fertilizers will also be exempt from VAT, reducing costs and increasing agricultural productivity.
In the public catering sector, key tax incentives are planned to promote cashless payments. Specifically, 50% of cashless turnover through POS terminals will be deducted from VAT-taxable turnover. For simplified taxpayers, the tax rate on cashless POS turnover will be reduced from 8% to 6%.
From next year, the VAT registration threshold will be increased to expand cashless transactions. The limit for cashless turnover in retail trade and services provided to unregistered individuals will rise from 200,000 to 400,000 AZN.
Furthermore, the tax rate on dividend income earned abroad by individuals will be reduced from 14% to 5% to improve the investment climate and boost capital inflow.