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Under what circumstances is a tax exemption granted to the children of fallen combatants?
Under what circumstances is a tax exemption granted to the children of fallen combatants?
The father of an employee working in a state authority participated in the Karabakh hostilities in 1993 and passed away in 2009. The employee has been working at the same state authority since 2010. Although a tax benefit for the children of combatants was stipulated in the Tax Code starting from 2019, the employee became aware of this benefit only in 2023, after which he submitted the supporting documents and requested that the benefit be applied retroactively from 2010. From which date should the said tax benefit be applied in respect of this employee?
The State Tax Service under the Ministry of Economy has stated that, pursuant to Article 102.2.5 of the Tax Code, the taxable monthly income from employment of widows (widowers) and children of combatants who were killed or who later passed away is reduced by 400 manats.
This exemption in respect of the children of combatants who were killed or who later passed away has been applied since 1 January 2019.
The list of documents confirming the right to the said benefit, which must be submitted by an individual to the main place of employment, was approved by Resolution No. 4 of the Cabinet of Ministers of the Republic of Azerbaijan dated 4 January 2001. The documents confirming the right to the benefit предусмотренный under Article 102.2.5 of the Tax Code are determined in accordance with Clause 1.5 of the “List of Documents for Determining Individuals’ Rights to Tax Benefits When Calculating Tax Withheld from Wages,” approved by the said Resolution.
Based on this, in the case specified in the inquiry, upon submission to the main place of employment of the relevant supporting document confirming the status of a child of a combatant who was killed or who later passed away, a tax benefit of 400 manats may be applied to that person’s income from employment. In this case, regardless of the time when the document confirming the right to the benefit is submitted to the main place of employment, the said tax benefit will be applied from 1 January 2022.
This is because, pursuant to the amendment made to Article 102.8 of the Tax Code, which entered into force on 1 January 2022, when calculating tax withheld from wages, the tax benefits listed in this article are applied from the moment the documents determined by the relevant executive authority are submitted and are implemented only at the individual’s main place of employment (where the employment record book is kept). If an individual has the status giving rise to the right to receive the tax benefits listed in this article but submits the supporting documents after the employment contract has entered into legal force, the tax benefit is calculated from the date on which the employment contract entered into legal force.
The above matters are regulated by Article 102 of the Tax Code and Resolution No. 4 of the Cabinet of Ministers dated 4 January 2001.
The father of an employee working in a state authority participated in the Karabakh hostilities in 1993 and passed away in 2009. The employee has been working at the same state authority since 2010. Although a tax benefit for the children of combatants was stipulated in the Tax Code starting from 2019, the employee became aware of this benefit only in 2023, after which he submitted the supporting documents and requested that the benefit be applied retroactively from 2010. From which date should the said tax benefit be applied in respect of this employee?
The State Tax Service under the Ministry of Economy has stated that, pursuant to Article 102.2.5 of the Tax Code, the taxable monthly income from employment of widows (widowers) and children of combatants who were killed or who later passed away is reduced by 400 manats.
This exemption in respect of the children of combatants who were killed or who later passed away has been applied since 1 January 2019.
The list of documents confirming the right to the said benefit, which must be submitted by an individual to the main place of employment, was approved by Resolution No. 4 of the Cabinet of Ministers of the Republic of Azerbaijan dated 4 January 2001. The documents confirming the right to the benefit предусмотренный under Article 102.2.5 of the Tax Code are determined in accordance with Clause 1.5 of the “List of Documents for Determining Individuals’ Rights to Tax Benefits When Calculating Tax Withheld from Wages,” approved by the said Resolution.
Based on this, in the case specified in the inquiry, upon submission to the main place of employment of the relevant supporting document confirming the status of a child of a combatant who was killed or who later passed away, a tax benefit of 400 manats may be applied to that person’s income from employment. In this case, regardless of the time when the document confirming the right to the benefit is submitted to the main place of employment, the said tax benefit will be applied from 1 January 2022.
This is because, pursuant to the amendment made to Article 102.8 of the Tax Code, which entered into force on 1 January 2022, when calculating tax withheld from wages, the tax benefits listed in this article are applied from the moment the documents determined by the relevant executive authority are submitted and are implemented only at the individual’s main place of employment (where the employment record book is kept). If an individual has the status giving rise to the right to receive the tax benefits listed in this article but submits the supporting documents after the employment contract has entered into legal force, the tax benefit is calculated from the date on which the employment contract entered into legal force.
The above matters are regulated by Article 102 of the Tax Code and Resolution No. 4 of the Cabinet of Ministers dated 4 January 2001.