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How is the 200 AZN tax exemption applied to salaries up to 2500 AZN?
How is the 200 AZN tax exemption applied to salaries up to 2500 AZN?
According to the Tax Code, starting from January 1, 2026, income tax for individuals working in the non-oil and non-state sectors is calculated at a 3% rate when their monthly salary is up to 2500 AZN.
At the same time, under Article 102.1.6 of the Tax Code, 200 AZN of the monthly income earned from the primary place of employment is exempt from income tax.
Therefore, for salaries up to 2500 AZN, the 200 AZN exemption should first be applied, and then the 3% income tax should be calculated on the remaining amount.
According to the Tax Code, starting from January 1, 2026, income tax for individuals working in the non-oil and non-state sectors is calculated at a 3% rate when their monthly salary is up to 2500 AZN.
At the same time, under Article 102.1.6 of the Tax Code, 200 AZN of the monthly income earned from the primary place of employment is exempt from income tax.
Therefore, for salaries up to 2500 AZN, the 200 AZN exemption should first be applied, and then the 3% income tax should be calculated on the remaining amount.