16:22 - 2.12.2025

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December 2, Fineko/abc.az. Azerbaijan introduces a permanent preferential treatment for income tax, reducing the rate of this tax by 50%.

As reported by ABC.AZ, this was stated by Finance Minister Sahil Babayev at today's plenary session of the parliament in the second reading of the Draft Law on the State Budget for 2026.

"If the law had not been amended, income up to 2,500 manats would have been taxed at a rate of 14%, and income over 2,500 manats at a rate of 25%. However, the government of Azerbaijan, taking into account the development of the private and non-oil and gas sector and its needs, introduces another large preferential regime, reducing the tax from 14% to 7%. And we are doing this gradually. In other words, the income tax, which in 2026 will be paid by persons with incomes up to 2,500 manats, covering the vast majority of employees, is only 3%. And I once again appeal to my distinguished colleagues, deputies, as well as our experts: let them study the tax regimes of any countries and see if there are many countries where the income tax is 3%. This is a very big benefit and another advantage created by the Azerbaijani government for the development of the private sector," he said.