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Is income earned from the sale of electronic books subject to taxation?
Is income earned from the sale of electronic books subject to taxation?
I want to write an e-book and sell it online on foreign platforms. Can I sell without registering as an individual entrepreneur? If I register as an individual entrepreneur or operate without registration, how much tax will I have to pay?
According to the State Tax Service under the Ministry of Economy, under Article 96.1 of the Tax Code, the taxable income of residents is defined as the difference between total annual income and allowable deductions. Total income includes earnings obtained both within and outside the Republic of Azerbaijan.
This activity is considered entrepreneurial. Under Article 33.4 of the Tax Code, an individual conducting business without establishing a legal entity must register with the tax authority (obtain a taxpayer identification number) before starting the activity and pay tax on the income earned.
Tax obligations depend on the chosen taxation system. If the simplified tax system is selected, a 2% tax is applied to total turnover without deducting expenses. If income tax applies, expenses related to earning the income are deducted, and the remaining amount is taxed at 20%.
According to Article 58.2 of the Tax Code, failure to register with the tax authority within the required time results in a financial penalty of 200 AZN.
Source: Articles 33.4, 58.2, 96.1, 101, 220 of the Tax Code.
I want to write an e-book and sell it online on foreign platforms. Can I sell without registering as an individual entrepreneur? If I register as an individual entrepreneur or operate without registration, how much tax will I have to pay?
According to the State Tax Service under the Ministry of Economy, under Article 96.1 of the Tax Code, the taxable income of residents is defined as the difference between total annual income and allowable deductions. Total income includes earnings obtained both within and outside the Republic of Azerbaijan.
This activity is considered entrepreneurial. Under Article 33.4 of the Tax Code, an individual conducting business without establishing a legal entity must register with the tax authority (obtain a taxpayer identification number) before starting the activity and pay tax on the income earned.
Tax obligations depend on the chosen taxation system. If the simplified tax system is selected, a 2% tax is applied to total turnover without deducting expenses. If income tax applies, expenses related to earning the income are deducted, and the remaining amount is taxed at 20%.
According to Article 58.2 of the Tax Code, failure to register with the tax authority within the required time results in a financial penalty of 200 AZN.
Source: Articles 33.4, 58.2, 96.1, 101, 220 of the Tax Code.