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Is a parent on maternity leave considered a dependent?
Is a parent on maternity leave considered a dependent?
There are two minor children in the family. One of the parents is employed under an employment contract, while the other parent is on maternity leave. In this case, can the parent on maternity leave and the minor children be considered dependents of the working parent? If so, is it possible to apply the monthly income tax relief of 50 manats предусмотренное under Article 102.5 of the Tax Code to the working parent? What supporting documents must be submitted to benefit from this relief?
According to the State Tax Service under the Ministry of Economy, pursuant to Article 102.5 of the Tax Code, regardless of the degree of kinship, if one of the spouses has at least three dependents (including pupils and full-time students under the age of 23), their taxable monthly income is reduced by 50 manats. If both parents are employed, this relief applies only to one of them, not both.
It is also 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.
Accordingly, if an individual has three dependents, their income earned from employment at their main workplace (where their employment record book is held) is reduced by 50 manats, provided that the relevant supporting documents are submitted. These documents include, in accordance with clause 1.15 of the “List of documents for determining the right of individuals to tax relief when calculating tax withheld from wages,” approved by Resolution No. 4 of the Cabinet of Ministers of the Republic of Azerbaijan dated January 4, 2001: a certificate from the employer at the main workplace indicating whether one of the spouses uses this relief, and certificates issued by the local executive authority or municipality in the form approved by the Ministry of Economy.
In response to the inquiry, it is stated that the allowance received during maternity leave does not prevent the use of this relief. In this case, since the number of dependents (including two minor children and the spouse) reaches three, the right to benefit from the said relief arises.
Basis: Article 102 of the Tax Code and the “List of documents…” approved by Resolution No. 4 of the Cabinet of Ministers dated January 4, 2001.
There are two minor children in the family. One of the parents is employed under an employment contract, while the other parent is on maternity leave. In this case, can the parent on maternity leave and the minor children be considered dependents of the working parent? If so, is it possible to apply the monthly income tax relief of 50 manats предусмотренное under Article 102.5 of the Tax Code to the working parent? What supporting documents must be submitted to benefit from this relief?
According to the State Tax Service under the Ministry of Economy, pursuant to Article 102.5 of the Tax Code, regardless of the degree of kinship, if one of the spouses has at least three dependents (including pupils and full-time students under the age of 23), their taxable monthly income is reduced by 50 manats. If both parents are employed, this relief applies only to one of them, not both.
It is also 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.
Accordingly, if an individual has three dependents, their income earned from employment at their main workplace (where their employment record book is held) is reduced by 50 manats, provided that the relevant supporting documents are submitted. These documents include, in accordance with clause 1.15 of the “List of documents for determining the right of individuals to tax relief when calculating tax withheld from wages,” approved by Resolution No. 4 of the Cabinet of Ministers of the Republic of Azerbaijan dated January 4, 2001: a certificate from the employer at the main workplace indicating whether one of the spouses uses this relief, and certificates issued by the local executive authority or municipality in the form approved by the Ministry of Economy.
In response to the inquiry, it is stated that the allowance received during maternity leave does not prevent the use of this relief. In this case, since the number of dependents (including two minor children and the spouse) reaches three, the right to benefit from the said relief arises.
Basis: Article 102 of the Tax Code and the “List of documents…” approved by Resolution No. 4 of the Cabinet of Ministers dated January 4, 2001.