BAKU: Azerbaijan has introduced significant tax exemptions for micro-entrepreneurs across various service sectors, aiming to stimulate economic growth and entrepreneurship. Starting today, individuals who operate in specific fields with an annual turnover of up to 45,000 manats will benefit from a 75 percent tax exemption on their income, without the usual prerequisites of employing three staff members or having no outstanding state social insurance contributions.

According to Azeri-Press News Agency, the tax exemptions are part of amendments to the Tax Code approved by President Ilham Aliyev. The sectors eligible for these exemptions include software development, project design and decoration, translation, advertising, research, and services related to science, education, culture, sports, and more. This move is expected to incentivize individuals working in these areas, thereby boosting overall economic activity.

The new tax policy builds on previous measures from January 1 of this year, where 75 percent of the income earned by micro-entrepreneurs, meeting specific employment and insurance contribution criteria, was exempted from income tax. However, the current update significantly relaxes these conditions, allowing broader access to the tax benefits.

While the exemptions apply solely to individuals, legal entities will still need to meet the previous requirements, including maintaining an average monthly employee count of at least three and having no debt on mandatory state social insurance contributions, to avail the benefits. The amendments are seen as a strategic effort to enhance the business environment for individual entrepreneurs in Azerbaijan.