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How are tax registration (TIN) and taxation carried out in individual tutoring activities?
How are tax registration (TIN) and taxation carried out in individual tutoring activities?
Pursuant to Article 33.4 of the Tax Code, an individual who carries out entrepreneurial activity without establishing a legal entity must submit an application to the tax authority to be registered for tax purposes and obtain a Tax Identification Number (TIN/VÖEN) before commencing such activity. Taxes on income earned from the activity must be paid to the state budget. Tax obligations are determined based on the taxation system selected at the time of tax registration and the arising taxable objects.
If an individual chooses the simplified taxation system, a simplified tax at a rate of 2 percent is calculated on the obtained income (gross turnover) without deduction of expenses and paid to the state budget.
If the activity is carried out as an income tax payer, income tax at a rate of 20 percent is calculated on the remaining amount after deducting expenses related to earning the income and paid to the state budget.
We also inform you that as of January 1, 2025, 75 percent of the income of individuals engaged in the types of activities specified in Article 102.1.30-1 of the Tax Code, obtained from such activities during a calendar year (without taking expenses into account) up to 45,000 manats, is exempt from income tax.
Services provided in the fields of science, education, culture, and sports are included among the activities specified in the said article (102.1.30-1.6).
If non-commodity transactions are carried out by the taxpayer, the tax exemption established by this article does not apply to income arising from such transactions.
Additionally, if an individual engaged in the specified fields of activity simultaneously carries out other types of activities, they may benefit from the exemption provided under Article 102.1.30-1 only if the share of annual income obtained from the specified activities constitutes at least 50 percent of the total annual income.
Pursuant to Article 33.4 of the Tax Code, an individual who carries out entrepreneurial activity without establishing a legal entity must submit an application to the tax authority to be registered for tax purposes and obtain a Tax Identification Number (TIN/VÖEN) before commencing such activity. Taxes on income earned from the activity must be paid to the state budget. Tax obligations are determined based on the taxation system selected at the time of tax registration and the arising taxable objects.
If an individual chooses the simplified taxation system, a simplified tax at a rate of 2 percent is calculated on the obtained income (gross turnover) without deduction of expenses and paid to the state budget.
If the activity is carried out as an income tax payer, income tax at a rate of 20 percent is calculated on the remaining amount after deducting expenses related to earning the income and paid to the state budget.
We also inform you that as of January 1, 2025, 75 percent of the income of individuals engaged in the types of activities specified in Article 102.1.30-1 of the Tax Code, obtained from such activities during a calendar year (without taking expenses into account) up to 45,000 manats, is exempt from income tax.
Services provided in the fields of science, education, culture, and sports are included among the activities specified in the said article (102.1.30-1.6).
If non-commodity transactions are carried out by the taxpayer, the tax exemption established by this article does not apply to income arising from such transactions.
Additionally, if an individual engaged in the specified fields of activity simultaneously carries out other types of activities, they may benefit from the exemption provided under Article 102.1.30-1 only if the share of annual income obtained from the specified activities constitutes at least 50 percent of the total annual income.