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Tax and insurance obligations for individual barbering activity
Tax and insurance obligations for individual barbering activity
We inform that individuals who engage in barbering activity on an individual basis without hiring employees and earn income fulfill their tax obligations by obtaining a “receipt for the payment of the fixed amount of simplified tax, mandatory state social insurance, and compulsory health insurance contributions.”
Accordingly, such individuals must be registered with the tax authority, obtain a Tax Identification Number (TIN), and before starting their activity, voluntarily obtain the mentioned receipt from the State Tax Service for the next month, quarter, half-year, or year.
The monthly fixed simplified tax amount for individuals engaged in barbering activity is 15 manats. The monthly tax is determined by applying the following coefficients:
Baku (including villages and settlements) – 2.0;
Ganja, Sumgayit, and Khirdalan – 1.5;
Absheron region (excluding Khirdalan), as well as Shirvan, Mingachevir, Nakhchivan, Lankaran, Yevlakh, Sheki, and Naftalan – 1.0;
other regions – 0.5.
According to Article 14.5.1-1.2 of the Law “On Social Insurance,” taxpayers engaged in barbering must pay monthly social insurance contributions in the amount of 5% of the minimum wage, applying the relevant coefficients:
Baku – coefficient 2;
Absheron, Sumgayit, and Ganja – coefficient 1.5;
other regions – coefficient 1.
According to Article 15-10.1.3 of the Law “On Compulsory Health Insurance,” a monthly contribution of 4% of the minimum wage is paid, without applying any coefficients.
The receipt is issued within two working days for written applications and in real time for electronic applications.
Under Article 218.4.4 of the Tax Code, the amounts paid are non-refundable and cannot be credited against future periods, regardless of whether the activity is carried out during the validity of the receipt.
According to Article 221.8.3, individuals who do not hire employees are not required to submit tax declarations for this activity.
For more information, you may refer to the “Tax Guide” section or contact the Call Center (195-1) or taxpayer service centers.
Legal basis: Articles 33, 34, 218, and 220 of the Tax Code.
We inform that individuals who engage in barbering activity on an individual basis without hiring employees and earn income fulfill their tax obligations by obtaining a “receipt for the payment of the fixed amount of simplified tax, mandatory state social insurance, and compulsory health insurance contributions.”
Accordingly, such individuals must be registered with the tax authority, obtain a Tax Identification Number (TIN), and before starting their activity, voluntarily obtain the mentioned receipt from the State Tax Service for the next month, quarter, half-year, or year.
The monthly fixed simplified tax amount for individuals engaged in barbering activity is 15 manats. The monthly tax is determined by applying the following coefficients:
Baku (including villages and settlements) – 2.0;
Ganja, Sumgayit, and Khirdalan – 1.5;
Absheron region (excluding Khirdalan), as well as Shirvan, Mingachevir, Nakhchivan, Lankaran, Yevlakh, Sheki, and Naftalan – 1.0;
other regions – 0.5.
According to Article 14.5.1-1.2 of the Law “On Social Insurance,” taxpayers engaged in barbering must pay monthly social insurance contributions in the amount of 5% of the minimum wage, applying the relevant coefficients:
Baku – coefficient 2;
Absheron, Sumgayit, and Ganja – coefficient 1.5;
other regions – coefficient 1.
According to Article 15-10.1.3 of the Law “On Compulsory Health Insurance,” a monthly contribution of 4% of the minimum wage is paid, without applying any coefficients.
The receipt is issued within two working days for written applications and in real time for electronic applications.
Under Article 218.4.4 of the Tax Code, the amounts paid are non-refundable and cannot be credited against future periods, regardless of whether the activity is carried out during the validity of the receipt.
According to Article 221.8.3, individuals who do not hire employees are not required to submit tax declarations for this activity.
For more information, you may refer to the “Tax Guide” section or contact the Call Center (195-1) or taxpayer service centers.
Legal basis: Articles 33, 34, 218, and 220 of the Tax Code.