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Tax relief rules for individuals with 3 dependents
Tax relief rules for individuals with 3 dependents
According to Article 102.5 of the Tax Code, regardless of the degree of kinship, the monthly taxable income of one of the spouses who has at least three dependents (including pupils and full-time students under the age of 23) is reduced by 50 AZN. If both parents are employed, this relief applies to only one of them, not both.
It should be noted that individuals receiving scholarships, pensions, or unemployment insurance benefits (except for children), as well as those fully supported by the state under the law, are not considered dependents.
Based on the above, the income earned by an individual from employment at their main workplace (where their employment record is kept) is reduced by 50 AZN if they have 3 dependents, provided that the relevant supporting documents are submitted. These documents include a certificate from the employer at the main workplace confirming whether one of the spouses benefits from this relief, and certificates issued by local executive authorities or municipalities in the form approved by the Ministry of Economy of the Republic of Azerbaijan, in accordance with clause 1.15 of the “List of documents required to determine the right of individuals to tax relief when calculating income tax withheld from wages,” approved by the Resolution No. 4 of the Cabinet of Ministers dated January 4, 2001.
We also inform you that the allowance received during maternity leave does not prevent the use of this tax relief. In this case, since the number of dependents, including two minor children and a spouse, reaches three, the right to benefit from this tax relief arises.
Basis: Article 102 of the Tax Code and the relevant list of documents approved by Resolution No. 4 of the Cabinet of Ministers of the Republic of Azerbaijan dated January 4, 2001.
According to Article 102.5 of the Tax Code, regardless of the degree of kinship, the monthly taxable income of one of the spouses who has at least three dependents (including pupils and full-time students under the age of 23) is reduced by 50 AZN. If both parents are employed, this relief applies to only one of them, not both.
It should be noted that individuals receiving scholarships, pensions, or unemployment insurance benefits (except for children), as well as those fully supported by the state under the law, are not considered dependents.
Based on the above, the income earned by an individual from employment at their main workplace (where their employment record is kept) is reduced by 50 AZN if they have 3 dependents, provided that the relevant supporting documents are submitted. These documents include a certificate from the employer at the main workplace confirming whether one of the spouses benefits from this relief, and certificates issued by local executive authorities or municipalities in the form approved by the Ministry of Economy of the Republic of Azerbaijan, in accordance with clause 1.15 of the “List of documents required to determine the right of individuals to tax relief when calculating income tax withheld from wages,” approved by the Resolution No. 4 of the Cabinet of Ministers dated January 4, 2001.
We also inform you that the allowance received during maternity leave does not prevent the use of this tax relief. In this case, since the number of dependents, including two minor children and a spouse, reaches three, the right to benefit from this tax relief arises.
Basis: Article 102 of the Tax Code and the relevant list of documents approved by Resolution No. 4 of the Cabinet of Ministers of the Republic of Azerbaijan dated January 4, 2001.