New amendments reduce taxes for people with disabilities in Azerbaijan

Amendments have been made to the Tax Code and the Law on Social Insurance to encourage people with disabilities to engage in their skills and creativity and boost their economic activity.

Azernews reports, citing the State Tax Service under the Ministry of Economy, note that current legislation requires individuals earning income through entrepreneurial activity to register with tax authorities, declare their income, and pay applicable taxes to the state budget.

According to the amendments, income earned by people with disabilities will now be taxed at a reduced rate, and tax administration processes related to them will be simplified.

Going forward, a 2 percent withholding tax will be deducted and declared by the Agency for Sustainable and Operative Social Security (DOST Agency) under the Ministry of Labor and Social Protection of the Population, from income earned through the sale of handicrafts via the DOST Agency’s official e-commerce platform.

As a result, individuals with disabilities will no longer be required to register with tax authorities, submit tax reports, or complete other administrative procedures.

Additionally, under amendments to the Law on Social Insurance, mandatory state social insurance contributions will not be deducted from income earned by these individuals through the sale of handicrafts on the DOST Agency’s e-commerce platform.