Date: 08 November 2018, 17:11, READ:
He noted that in order to reduce informal employment, reduction in the rate of compulsory social insurance for entrepreneurs is expected. Rajabli said that fundamental reforms in the areas of taxation are also expected.
The amendments proposed to the tax legislation for 2019 envisage introduction of the differentiation of contributions on compulsory social insurance. Thus, if the employee’s salary is 200 manats, the social insurance contributions will remain at the current level: the employee pays 3 percent of the salary, and the employer pays 22 percent.
If the employee’s salary exceeds 200 manats, it is proposed to apply another deduction principle: the employee pays 6 manats and 10 percent of the amount exceeding 200 manats, and the employer pays 44 manats and 15 percent of the amount exceeding 200 manats.
These changes also affect those working in the private sector and not engaged in the oil and gas sector. At the same time, the Ministry of Taxes will control social security payments and unemployment insurance.
(1.7 manats = 1 USD on Nov. 8)