The main directions of amendments to the Code are to encourage entrepreneurial activity, expand the tax base, reduce the financial and tax burden of the population through social benefits, improve tax accounting, taxation and tax control mechanisms, provide tax incentives to business entities, etc.
It is noted that one of the proposals to reduce the tax burden of the population through social benefits is the exemption from income tax of material assistance up to 10,000 manats ($5,884), provided to members of the family of martyrs and military personnel who have been assigned disabilities in connection with military operations for the freedom, sovereignty and territorial integrity of Azerbaijan.
As a continuation of the attention and care shown to members of the families of martyrs and servicemen who have been assigned disabilities in connection with the military operations carried out for the freedom, sovereignty and territorial integrity of Azerbaijan, it is proposed to exempt from income tax material assistance up to 10,000 manats provided to individuals belonging to this category, regardless of its intended purpose.
Another amendment to the income tax is an exemption from this tax of up to 10,000 manats of a lump-sum, material assistance to pay for treatment within the country, including surgical operations, as well as up to 40,000 manats ($23,536) of material assistance, a lump-sum to pay for medical treatment abroad, including surgical operations.
Since 2001, when the Tax Code came into force, the cost of treatment up to 1,000 manats ($588) was exempted from income tax and up to 2,000 manats ($1,176) - material assistance and benefits for paying for treatment abroad.
Taking into account the rise in prices in the medical field, as well as the existing prices for surgical operations, it was proposed to increase these amounts from 1,000 manats to 10,000 manats, and treatment abroad, including payment for surgical operations, from 2,000 manats to 40,000 manats.
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