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tr“I am an individual entrepreneur with no employees. Am I eligible for a tax exemption?” — OFFICIAL RESPONSE
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“I am an individual entrepreneur with no employees. Am I eligible for a tax exemption?” — OFFICIAL RESPONSE
I am an individual micro-entrepreneur with no employees. My main activity code is 7312001 (Advertising activity), and I earn income from the “YouTube” platform. Under Article 102.1.30-1 of the Tax Code, does the “at least 3 employees” requirement apply to me because I am engaged in advertising activities? Can I benefit from the 75% tax exemption on my income without having any employees? Also, should I submit my income tax return for this activity quarterly or annually (no later than March 31 of the following year)?
The State Tax Service under the Ministry of Economy told FED.az that, pursuant to Article 102.1.30-1 of the Tax Code, if the annual income earned by individuals from the types of activities specified in that article does not exceed AZN 45,000 (without taking expenses into account), 75% of such income is exempt from income tax.
If the taxpayer carries out non-commodity transactions, the tax exemption established by this article does not apply to income arising from such transactions.
It was additionally stated that if an individual engaged in the specified types of activities also carries out other activities, the individual may benefit from the exemption provided for in Article 102.1.30-1 only if the share of annual income derived from the specified activities in total annual income is at least 50%.
In response to the inquiry, it was also stated that the income tax return must be submitted to the tax authority no later than March 31 of the year following the reporting year: “Furthermore, if your annual income does not exceed AZN 45,000, the ‘3 employees’ requirement does not apply to you, and if your activity falls under the advertising services specified in Article 102.1.30-1 of the Tax Code, you may benefit from the 75% exemption.”
Legal basis: Articles 102.1.30-1 and 149 of the Tax Code.
I am an individual micro-entrepreneur with no employees. My main activity code is 7312001 (Advertising activity), and I earn income from the “YouTube” platform. Under Article 102.1.30-1 of the Tax Code, does the “at least 3 employees” requirement apply to me because I am engaged in advertising activities? Can I benefit from the 75% tax exemption on my income without having any employees? Also, should I submit my income tax return for this activity quarterly or annually (no later than March 31 of the following year)?
The State Tax Service under the Ministry of Economy told FED.az that, pursuant to Article 102.1.30-1 of the Tax Code, if the annual income earned by individuals from the types of activities specified in that article does not exceed AZN 45,000 (without taking expenses into account), 75% of such income is exempt from income tax.
If the taxpayer carries out non-commodity transactions, the tax exemption established by this article does not apply to income arising from such transactions.
It was additionally stated that if an individual engaged in the specified types of activities also carries out other activities, the individual may benefit from the exemption provided for in Article 102.1.30-1 only if the share of annual income derived from the specified activities in total annual income is at least 50%.
In response to the inquiry, it was also stated that the income tax return must be submitted to the tax authority no later than March 31 of the year following the reporting year: “Furthermore, if your annual income does not exceed AZN 45,000, the ‘3 employees’ requirement does not apply to you, and if your activity falls under the advertising services specified in Article 102.1.30-1 of the Tax Code, you may benefit from the 75% exemption.”
Legal basis: Articles 102.1.30-1 and 149 of the Tax Code.