The 200 ₼ tax-free part
Under article 102.1.6, when monthly income at the main workplace is up to 2,500 ₼, 200 ₼ of it is free of income tax. It applies at the main workplace.
One qəpik over 2,500 ₼ and the whole 200 ₼ is lost. That jump is worked through in the guide to the 2,500 ₼ threshold.
Reliefs by category
These reliefs come on top of the 200 ₼ and each one reduces monthly taxable income:
| Relief | Who gets it | Article |
|---|---|---|
| 800.00 ₼ | Family of a martyr: parent, widow or widower, child | 102.1-1 |
| 400.00 ₼ | War heroes, war-disabled people and veterans, widows and children of fallen soldiers | 102.2 |
| 200.00 ₼ | People with a 61–100% disability, a parent or guardian caring for a disabled child | 102.3 |
| 100.00 ₼ | Parents of fallen soldiers, internally displaced people, servicemen sent to combat zones | 102.4 |
| 50.00 ₼ | I support three or more dependants | 102.5 |
The exact wording of the 102.2, 102.3 and 102.4 categories comes from State Tax Service guidance; check that guidance and the Code for the full list.
- 800 ₼: parents, widows and widowers, and children of people with martyr status (102.1-1).
- 400 ₼: Heroes of the Patriotic War and National Heroes of Azerbaijan, people with war-related disability, widows and children of fallen fighters without martyr status, war veterans, people affected by Chernobyl radiation (102.2).
- 200 ₼: people with disabilities, children with disabilities under 18, and a parent, spouse or guardian who cares for such a child or for a person needing permanent care (102.3).
- 100 ₼: parents of fallen servicemen, related categories, and internally displaced persons (102.4).
How the reliefs combine
Under article 102.7, a person entitled to more than one of the 800 ₼, 400 ₼, 200 ₼ and 100 ₼ reliefs gets only the largest. They do not add up.
Article 102.5 takes a further 50 ₼ off the income of one spouse who supports at least 3 dependants. It is not in the 102.7 list, so it adds to a category relief. With one dependant there is no entitlement.
Category reliefs add to the 200 ₼. This follows from the text of articles 102.1.6 and 102.1-1 to 102.5 and was confirmed by runs on the State Tax Service calculator.
The relief is subtracted from income and the income tax scale is applied to what is left. Social, unemployment and medical insurance are charged on the full salary, so nothing changes on the insurance side.
Worked at a salary of 1,000 ₼
Private sector, main job, with the 400 ₼ relief: taxable income is 400.00 ₼ and the tax is 12.00 ₼.
From the employee’s pay per month, ₼
Employer cost per month, ₼
The same relief with three dependants: taxable income falls to 350.00 ₼.
From the employee’s pay per month, ₼
Employer cost per month, ₼
With the 800 ₼ relief:
From the employee’s pay per month, ₼
Employer cost per month, ₼
Taxable income cannot go below zero. At a salary of 300 ₼ with the 800 ₼ relief, the tax is 0.00 ₼.
Conditions
- Reliefs apply only at the main workplace (where the employment record book is kept), article 102.8. At a second job the tax is worked out separately and no relief comes off.
- A relief applies from when the supporting documents are given to the employer. State Tax Service guidance says that if they are handed in after the contract starts, the relief counts from the contract start date.
- The 2,500 ₼ threshold is tested on gross pay whatever the category relief. At 2,500.01 ₼ with a 400 ₼ relief, for example, the 200 ₼ still does not come off: taxable income is 2,100.01 ₼ and the tax is 63.00 ₼.
Pick the reliefs that apply to you in the salary calculator. The other deductions are on the salary deductions page.
Questions and answers
Who gets income tax reliefs in Azerbaijan?
800 ₼ for martyrs’ families, 400 ₼ for heroes and veterans, 200 ₼ for people with disabilities, 100 ₼ for parents of fallen servicemen and displaced persons, plus 50 ₼ for supporting 3 or more dependants. If several apply, only the largest category relief is given.
Who gets the 200 ₼ tax-free part?
Anyone at the main workplace with monthly pay of 2,500 ₼ or less. Above that threshold it disappears entirely.
Do reliefs apply at a second job?
No. Article 102.8 gives them only at the main workplace; at a second job tax starts from the first manat.
Do reliefs reduce insurance contributions?
No. They only reduce the base for income tax; social, medical and unemployment insurance are charged on the full salary.