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What are the conditions for applying the 75% tax exemption предусмотренной for individual entrepreneurs?
What are the conditions for applying the 75% tax exemption предусмотренной for individual entrepreneurs?
According to Article 102.1.30 of the Tax Code, in order for an individual entrepreneur to benefit from the 75% tax exemption, the average monthly number of employees over a 12-calendar-month period must be at least three. Therefore, having three employees for only eight months does not qualify the entrepreneur for this exemption.
At the same time, the legislation does not impose any restrictions regarding whether employees work full-time or part-time. Thus, part-time employees are also included in the employee count.
In addition, under Article 102.1.30-1 of the Tax Code, 75% of the income earned by individuals engaged in specified types of activities with annual income up to 45,000 AZN is exempt from income tax. To determine whether training services fall within the scope of these activities, it is recommended to consult the tax authority.
Tax exemptions apply only to the reporting period during which the required conditions are met. If an entrepreneur loses micro-business status in subsequent years, 75% of the income tax paid during the previous three years may be credited against future tax liabilities.
This exemption does not apply to income derived from non-goods transactions.
Basis: Article 102 of the Tax Code.
According to Article 102.1.30 of the Tax Code, in order for an individual entrepreneur to benefit from the 75% tax exemption, the average monthly number of employees over a 12-calendar-month period must be at least three. Therefore, having three employees for only eight months does not qualify the entrepreneur for this exemption.
At the same time, the legislation does not impose any restrictions regarding whether employees work full-time or part-time. Thus, part-time employees are also included in the employee count.
In addition, under Article 102.1.30-1 of the Tax Code, 75% of the income earned by individuals engaged in specified types of activities with annual income up to 45,000 AZN is exempt from income tax. To determine whether training services fall within the scope of these activities, it is recommended to consult the tax authority.
Tax exemptions apply only to the reporting period during which the required conditions are met. If an entrepreneur loses micro-business status in subsequent years, 75% of the income tax paid during the previous three years may be credited against future tax liabilities.
This exemption does not apply to income derived from non-goods transactions.
Basis: Article 102 of the Tax Code.