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Taking into account the perspectives of leading business representatives and the overall level of business preparedness regarding the anticipated expiration of existing personal income tax exemptions starting from 2026, AmCham Azerbaijan has developed a “Position Paper.”
The document provides a comprehensive analysis of the issue’s relevance, as well as its potential impact on the business environment and labor market. Based on this analysis, the paper proposes a gradual phase-out of the temporary exemptions currently applied to income tax and mandatory state social insurance contributions. This approach would help minimize the negative effects on employees’ incomes during the transition period and support the preservation of economic stability.
At the same time, the “Position Paper” outlines recommendations on introducing incentive mechanisms for employers to ensure the protection of employees’ net incomes, along with measures to be implemented in the long term.
AmCham Azerbaijan believes that the implementation of the proposals set forth in the “Position Paper” would not only ensure a gradual and balanced transition within the tax system but also contribute to maintaining employment and competitiveness in the non-oil sector.
You can access the “Position Paper” through the following link:
It should be noted that since its establishment in 1996, AmCham Azerbaijan, representing nearly 300 member companies, has been actively continuing its efforts as a leading business association dedicated to promoting a favorable business environment in the country.
