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What is the amount of social insurance contribution for a micro-entrepreneur with an income of 7,000 manats?
What is the amount of social insurance contribution for a micro-entrepreneur with an income of 7,000 manats?
A micro-entrepreneur (individual) records income and expenses using the cash method. In January 2026, they sold goods worth 5,000 manats and issued an e-invoice, but only 4,000 manats were received. Additionally, a 3,000 manat receivable from 2025 was collected in January. From which amount and how much should the social insurance contribution for January 2026 be calculated?
According to Article 132 of the Tax Code of Azerbaijan, when the cash method is applied, income is considered received at the time the cash is actually collected. In this case, the entrepreneur’s income for January 2026 is the actually received amount — 4,000 manats (current sales) + 3,000 manats (previous period receivable), totaling 7,000 manats.
According to Article 14.5.1 of the Law on Social Insurance, a micro-entrepreneur pays the mandatory state social insurance contribution at 2% of their income (before deducting expenses).
Thus, the social insurance contribution for January 2026 is:
7,000 × 2% = 140 manats
(Note: The amount cannot be less than 15% or exceed 100% of the minimum monthly wage.)
A micro-entrepreneur (individual) records income and expenses using the cash method. In January 2026, they sold goods worth 5,000 manats and issued an e-invoice, but only 4,000 manats were received. Additionally, a 3,000 manat receivable from 2025 was collected in January. From which amount and how much should the social insurance contribution for January 2026 be calculated?
According to Article 132 of the Tax Code of Azerbaijan, when the cash method is applied, income is considered received at the time the cash is actually collected. In this case, the entrepreneur’s income for January 2026 is the actually received amount — 4,000 manats (current sales) + 3,000 manats (previous period receivable), totaling 7,000 manats.
According to Article 14.5.1 of the Law on Social Insurance, a micro-entrepreneur pays the mandatory state social insurance contribution at 2% of their income (before deducting expenses).
Thus, the social insurance contribution for January 2026 is:
7,000 × 2% = 140 manats
(Note: The amount cannot be less than 15% or exceed 100% of the minimum monthly wage.)