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More money will be deducted from the incomes of these individuals
More money will be deducted from the incomes of these individuals
“According to the new amendments made to the legislation, the existing regime for fixed receipts and family peasant farms will be maintained; however, the rates will be increased. Thus, under the amendments planned to enter into force next year, the regional coefficients applied to fixed receipts will be raised from 3 percent to 5 percent, and the rates of 5 percent will be increased to 8 percent.”
This means that the payment for activities in the fields of hosting, music performance, dancing, ashug performance, comedy and entertainment at weddings, celebrations, and other events, as well as individual photo, audio, and video services (excluding photo studios), will be increased from 5 percent to 8 percent of the minimum monthly wage. “For other types of activities requiring fixed receipts, the rates will be increased from 3 percent to 5 percent. Taking into account the application of regional coefficients for these activities, the amounts paid in the capital and several large cities will be higher. Specifically, a coefficient of 2.0 is applied in the city of Baku (including villages and settlements), 1.5 in the Absheron district and the cities of Sumgayit and Ganja, and 1.0 in other cities and districts.”
After the new amendments, increases will be recorded in the payments made by those engaged in the aforementioned activities. “For example, individuals engaged in hairdressing activities previously paid 24 manats in Baku (400 manats — minimum wage × 3 percent × coefficient 2), whereas from 2026 they will pay 40 manats (400 manats — minimum wage × 5 percent × coefficient 2). In other words, the monthly payment for hairdressers in Baku will increase by 16 manats. Thus, a 2-percent increase multiplied by a coefficient of 2 results in a 4-percent increase. Since the minimum wage is 400 manats, the increase amounts to 16 manats (400 manats × 4 percent).
Similarly, individuals engaged in individual photography activities previously paid 40 manats in Baku (400 manats — minimum wage × 5 percent × coefficient 2), whereas from 2026 they will pay 64 manats (400 manats — minimum wage × 8 percent × coefficient 2). That is, the payments made by these individuals will increase by 24 manats.
It is expected that the new rates will increase costs in the sectors where fixed receipts are applied. As a rule, when mandatory expenses increase, entrepreneurs tend to raise prices.”
“According to the new amendments made to the legislation, the existing regime for fixed receipts and family peasant farms will be maintained; however, the rates will be increased. Thus, under the amendments planned to enter into force next year, the regional coefficients applied to fixed receipts will be raised from 3 percent to 5 percent, and the rates of 5 percent will be increased to 8 percent.”
This means that the payment for activities in the fields of hosting, music performance, dancing, ashug performance, comedy and entertainment at weddings, celebrations, and other events, as well as individual photo, audio, and video services (excluding photo studios), will be increased from 5 percent to 8 percent of the minimum monthly wage. “For other types of activities requiring fixed receipts, the rates will be increased from 3 percent to 5 percent. Taking into account the application of regional coefficients for these activities, the amounts paid in the capital and several large cities will be higher. Specifically, a coefficient of 2.0 is applied in the city of Baku (including villages and settlements), 1.5 in the Absheron district and the cities of Sumgayit and Ganja, and 1.0 in other cities and districts.”
After the new amendments, increases will be recorded in the payments made by those engaged in the aforementioned activities. “For example, individuals engaged in hairdressing activities previously paid 24 manats in Baku (400 manats — minimum wage × 3 percent × coefficient 2), whereas from 2026 they will pay 40 manats (400 manats — minimum wage × 5 percent × coefficient 2). In other words, the monthly payment for hairdressers in Baku will increase by 16 manats. Thus, a 2-percent increase multiplied by a coefficient of 2 results in a 4-percent increase. Since the minimum wage is 400 manats, the increase amounts to 16 manats (400 manats × 4 percent).
Similarly, individuals engaged in individual photography activities previously paid 40 manats in Baku (400 manats — minimum wage × 5 percent × coefficient 2), whereas from 2026 they will pay 64 manats (400 manats — minimum wage × 8 percent × coefficient 2). That is, the payments made by these individuals will increase by 24 manats.
It is expected that the new rates will increase costs in the sectors where fixed receipts are applied. As a rule, when mandatory expenses increase, entrepreneurs tend to raise prices.”