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trAre mandatory social security contributions deducted from income earned through Forex trading?
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Are mandatory social security contributions deducted from income earned through Forex trading?
I am currently employed at a manufacturing company under an employment contract, and mandatory state social insurance (MDSS) and compulsory health insurance (CHI/İTS) contributions are deducted from my salary. If I keep my primary employment and register as an individual taxpayer to obtain a Taxpayer Identification Number (VÖEN) for Forex trading, will I have to pay social contributions (MDSS and CHI/İTS) on the income earned from those transactions in addition to income tax, or will I be exempt from such payments?
According to the State Tax Service under the Ministry of Economy, an individual earning income from Forex transactions must register with the tax authorities, obtain a Taxpayer Identification Number (VÖEN), calculate 14% income tax in accordance with Article 101.2 of the Tax Code, and submit an annual income tax return no later than March 31 of the following year, paying the calculated tax to the state budget.
Under Article 99.3.8 of the Tax Code, any other income indicating an increase in the taxpayer's assets (other than salary income) is considered non-business income.
Furthermore, Article 15.12 of the Law of the Republic of Azerbaijan "On Social Insurance" provides that mandatory state social insurance contributions are not calculated on income that is not related to employment or entrepreneurial activity.
In addition, pursuant to Article 15-2.2.2 of the Law "On Medical Insurance", individuals registered as taxpayers (including sole proprietors, private notaries, members of the Bar Association, and mediators) act as insured persons themselves, except where their business or other taxable activities have been temporarily suspended.
Accordingly, Azerbaijani legislation does not require compulsory health insurance (CHI/İTS) contributions to be paid on income earned from Forex transactions.
Legal basis: Article 99.3 of the Tax Code, and the Laws of the Republic of Azerbaijan "On Social Insurance" and "On Medical Insurance."
I am currently employed at a manufacturing company under an employment contract, and mandatory state social insurance (MDSS) and compulsory health insurance (CHI/İTS) contributions are deducted from my salary. If I keep my primary employment and register as an individual taxpayer to obtain a Taxpayer Identification Number (VÖEN) for Forex trading, will I have to pay social contributions (MDSS and CHI/İTS) on the income earned from those transactions in addition to income tax, or will I be exempt from such payments?
According to the State Tax Service under the Ministry of Economy, an individual earning income from Forex transactions must register with the tax authorities, obtain a Taxpayer Identification Number (VÖEN), calculate 14% income tax in accordance with Article 101.2 of the Tax Code, and submit an annual income tax return no later than March 31 of the following year, paying the calculated tax to the state budget.
Under Article 99.3.8 of the Tax Code, any other income indicating an increase in the taxpayer's assets (other than salary income) is considered non-business income.
Furthermore, Article 15.12 of the Law of the Republic of Azerbaijan "On Social Insurance" provides that mandatory state social insurance contributions are not calculated on income that is not related to employment or entrepreneurial activity.
In addition, pursuant to Article 15-2.2.2 of the Law "On Medical Insurance", individuals registered as taxpayers (including sole proprietors, private notaries, members of the Bar Association, and mediators) act as insured persons themselves, except where their business or other taxable activities have been temporarily suspended.
Accordingly, Azerbaijani legislation does not require compulsory health insurance (CHI/İTS) contributions to be paid on income earned from Forex transactions.
Legal basis: Article 99.3 of the Tax Code, and the Laws of the Republic of Azerbaijan "On Social Insurance" and "On Medical Insurance."