en
In which cases is the 75% tax exemption applied for micro-entrepreneurs?
In which cases is the 75% tax exemption applied for micro-entrepreneurs?
In response to your inquiry regarding the existence of 3 employees for only 8 months during the calendar year, we inform you that in this case, your right to benefit from the tax exemption предусмотрed under Article 102.1.30 of the Tax Code does not currently arise. According to the requirements of this article, in order to benefit from the 75% tax exemption, the average monthly number of employees over 12 calendar months must be at least 3 persons. In addition, no restriction is предусмотрed regarding whether employees work full-time or part-time for the purposes of this exemption.
At the same time, we inform you that according to Article 102.1.30-1 of the Tax Code, if the annual income (without deducting expenses) earned by individuals engaged in the activities specified in this article does not exceed 45,000 manats during a calendar year, then 75% of such income is exempt from income tax. To obtain information on whether your activity type corresponds to one of the activities specified in this article, you may contact the tax authority where you are registered or the taxpayer service center within its jurisdiction.
Additionally, tax exemptions are applied only for the reporting period (calendar year) in which the relevant conditions are met. If a taxpayer does not meet the conditions established by this article for the application of the tax exemption and in the following reporting year moves from the category of a micro-entrepreneurship entity to another category of business entity, then a tax exemption amounting to 75% of the income tax calculated and paid for the previous 3 calendar years during which the individual entrepreneur qualified as a micro-entrepreneur shall be determined and deducted from the income tax liabilities arising during the periods in which the taxpayer operates as another type of business entity.
If fictitious or non-goods transactions are carried out by the taxpayer, the tax exemption established under this article shall not apply to the income derived from such transactions.
Basis: Article 102 of the Tax Code.
In response to your inquiry regarding the existence of 3 employees for only 8 months during the calendar year, we inform you that in this case, your right to benefit from the tax exemption предусмотрed under Article 102.1.30 of the Tax Code does not currently arise. According to the requirements of this article, in order to benefit from the 75% tax exemption, the average monthly number of employees over 12 calendar months must be at least 3 persons. In addition, no restriction is предусмотрed regarding whether employees work full-time or part-time for the purposes of this exemption.
At the same time, we inform you that according to Article 102.1.30-1 of the Tax Code, if the annual income (without deducting expenses) earned by individuals engaged in the activities specified in this article does not exceed 45,000 manats during a calendar year, then 75% of such income is exempt from income tax. To obtain information on whether your activity type corresponds to one of the activities specified in this article, you may contact the tax authority where you are registered or the taxpayer service center within its jurisdiction.
Additionally, tax exemptions are applied only for the reporting period (calendar year) in which the relevant conditions are met. If a taxpayer does not meet the conditions established by this article for the application of the tax exemption and in the following reporting year moves from the category of a micro-entrepreneurship entity to another category of business entity, then a tax exemption amounting to 75% of the income tax calculated and paid for the previous 3 calendar years during which the individual entrepreneur qualified as a micro-entrepreneur shall be determined and deducted from the income tax liabilities arising during the periods in which the taxpayer operates as another type of business entity.
If fictitious or non-goods transactions are carried out by the taxpayer, the tax exemption established under this article shall not apply to the income derived from such transactions.
Basis: Article 102 of the Tax Code.