Due to the expiration on January 1, 2026, of the tax exemption introduced in 2019 for employees working in the non-oil-gas and non-state sectors in Azerbaijan, income tax on individuals’ monthly salaries will be deducted under a new procedure, APA reports.
This is reflected in the proposed amendments to the Tax Code discussed today at a meeting of the Parliamentary Committee on Economic Policy, Industry, and Entrepreneurship.
According to the draft, in 2026, individuals with a monthly income of up to 2,500 manats will pay 3% tax, in 2027 – 5%, and from 2028 onward – 7%.
The tax for those with a monthly income of 2,500 to 8,000 manats will be 75 manats + 10% of the portion from 2,500 to 8,000 manats in 2026, 125 manats + 10% of the portion from 2,500 to 8,000 manats in 2027, and 175 manats + 10% of the portion from 2,500 to 8,000 manats from 2028.
For individuals earning more than 8,000 manats per month, the tax will be 625 manats plus 14% of the portion exceeding 8,000 manats in 2026; 675 manats plus 14% of the portion exceeding 8,000 manats in 2027; and 725 manats plus 14% of the portion exceeding 8,000 manats from 2028 onward.
It should be noted that the tax on the monthly income from hired work of individuals who do not have activities in the oil and gas sector and work for taxpayers belonging to the non-state sector was withheld for 7 years from January 1, 2019 at a rate of 0 percent if the monthly income is up to 8,000 manats, and 14 percent if it exceeds 8,000 manats.
