阿塞拜疆启动灵活公平的新阶段税收改革

Core Viewpoint - Azerbaijan's tax policy will enter a more flexible, fair, and development-oriented phase starting in 2026, with 145 adjustments to 45 articles of the tax law aimed at stimulating capital return and supporting key industries [1][2] Group 1: Tax Rate Adjustments - The tax rate on overseas dividend income will be reduced to encourage capital repatriation and voluntary income declaration by entrepreneurs [1] - Personal income tax rates will increase for citizens earning up to 2500 Manats (approximately 1470.6 USD), from 3% this year to 7% by 2026, and further adjustments planned for 2028 [1] - For those earning between 2500 and 8000 Manats (1470.6-4705.9 USD), the fixed tax amount will rise from 75 Manats (44.1 USD) to 125 Manats (73.5 USD) in 2027 and 175 Manats (102.9 USD) in 2028 [1] - Citizens earning over 8000 Manats (4705.9 USD) will see the fixed tax amount increase from 625 Manats (367.7 USD) to 675 Manats (397.1 USD) in 2026 and 725 Manats (426.5 USD) in 2028 [1] Group 2: Support for Key Industries - Tax incentives will be expanded for non-oil sectors such as agriculture, fisheries, shipbuilding, and the restaurant industry to enhance value creation [1] - The VAT refund program will be extended to include personal services like hairdressing and beauty, promoting legal operations among small and medium-sized enterprises [1] Group 3: Business Environment Improvements - The threshold for mandatory VAT registration will be raised from 200,000 Manats (approximately 118,000 USD) to 400,000 Manats (approximately 235,000 USD) to alleviate burdens on entrepreneurs [1] - Tax benefits will be provided to restaurants that comply with regulations and adopt non-cash payment systems [1] Group 4: Financial Impact - The total amount of tax benefits and exemptions in 2025 is projected to reach 77 billion Manats (approximately 4.53 billion USD), accounting for about 20% of budget revenues, primarily sourced from the non-oil private sector [2]