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Minister of Finance: “Azerbaijan is reducing the income tax rate by 50%”
Minister of Finance: “Azerbaijan is reducing the income tax rate by 50%”
Azerbaijan is introducing a permanent preferential regime regarding income tax, reducing its rate by 50%.
Sahil Babayev stated this during today’s plenary session of the Milli Majlis while discussing the draft law “On the state budget for 2026” in its second reading.
“If no amendments had been made to the law, income up to 2,500 manats would be taxed at 14%, and income above 2,500 manats at 25%. However, the Government of Azerbaijan, taking into account the development of the private and non-oil-gas sector and its needs, is introducing another major preferential regime and reducing the 14% tax rate to 7%. Moreover, we are doing this gradually.
Thus, in 2026, the income tax paid by individuals earning up to 2,500 manats—which represents the vast majority of salaried employees—will be only 3%. And I once again call on my esteemed colleagues, MPs, and experts to examine the tax systems of different countries and see how many have an income tax rate of 3%. This is a very significant concession and another privilege introduced by the Government of Azerbaijan to support the development of the private sector,” he said.
Azerbaijan is introducing a permanent preferential regime regarding income tax, reducing its rate by 50%.
Sahil Babayev stated this during today’s plenary session of the Milli Majlis while discussing the draft law “On the state budget for 2026” in its second reading.
“If no amendments had been made to the law, income up to 2,500 manats would be taxed at 14%, and income above 2,500 manats at 25%. However, the Government of Azerbaijan, taking into account the development of the private and non-oil-gas sector and its needs, is introducing another major preferential regime and reducing the 14% tax rate to 7%. Moreover, we are doing this gradually.
Thus, in 2026, the income tax paid by individuals earning up to 2,500 manats—which represents the vast majority of salaried employees—will be only 3%. And I once again call on my esteemed colleagues, MPs, and experts to examine the tax systems of different countries and see how many have an income tax rate of 3%. This is a very significant concession and another privilege introduced by the Government of Azerbaijan to support the development of the private sector,” he said.