16:52 - 17.09.2025

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September 17, Fineko/abc.az. Starting from January 1, 2026, the period of income tax benefits in the private sector will expire in Azerbaijan. There has been no official announcement about the extension of the deadline yet.

ABC.AZ informs that according to the amendments, a 14% tax is currently levied on salaries over 8,000 manats in the private sector. If the benefits are abolished, a 14% tax will be levied on the part of the salary up to 2,500 manats, and on the part above it - 25%.

Expert economist Khalid Karimli noted in this regard: "The main purpose of this benefit, introduced in January 2019, was to increase public interest in formalizing the salaries of employers and employees, as well as in paying taxes.

The term of this benefit was set at 7 years. Current forecasts show that the government has no plans to extend this period, and it is for this reason that an increase in tax collections is already expected. This suggests that the tax burden on both companies and individuals will return to its previous level or increase. According to the new rules, citizens will now pay an income tax of 14%, the payment to the Pension Fund will be reduced from 10% to 3%, 2.5% compulsory health insurance and 0.5% unemployment insurance will remain."