Income Tax of Physical Persons
Tax Rate
Form of payment
Reference to legislation
Taxpayers
Residents and non-residents physical persons
Tax Code, Article 95
Rates
Tax on income from employment – for oil and government sectors of activties
Tax on pensions, paid by legal entities or enterprenuers, excluding pensions paid through the government system of sosial security
Tax on income paid for services (works) to physical persons not registered as taxpayers
for monthjly income up to 2500 manat – 14%
for monthly income over than 2500 manats – 350 manat + 25% on amount exceeding 2500 manat
at the source of payment or by declaration
Tax Code, Article 101.1, 101.1-3.
Tax on income from employment – for other sectors of employment (valid until 01.01.2026)
up to 31.12.2025 – 5% from amount exceeding 8000 manat
from 01.01.26 till 31.12.32 – 5%
at the source of payment
Tax Code, Article 101.7
Tax on icome from employment with tax payers – residents of technologies parks within activities in systems integration, software programming and development outside of technologies parks
for monthjly income up to 8000 manat – 0%
for monthly income over than 8000 manats – 14% on amount exceeding 2500 manat
at the source of payment
Tax Code, Article 101.1-1
Tax on income from non-enterpreneurial activities
Tax on financial assistance, bonuses and scholarships paid to not emloyed phisycal persons paid by legal entities or individual entrepreneurs
Tax on income of lawyers performing their activities within law offices paid by those law offices.
14%
at the source of payment or by declaration
Tax Code, Article 101.2
Tax on income from entrepreneurial activities received by physical persons
20%
by declaration
Tax Code, Article 101.3
Tax on notary fees received by private notaries
10%
by declaration
Tax Code, Article 101.4
Tax on winnings (prises) from sport betting games, lotteries, other competitions and contests organized within the territory of Azerbaijan received in cash
10%
at the source of payment
Tax Code, Articles 101.5, 150.1.10, 150.1.11
Tax on payments to physical personsç not registered as taxpayers for goods purchased for cash (according to Law on cashless settlements)
5%
at the source of payment
Tax Code, Article 101.6, Law on Cashless settlements, Article 3.5