75% Profit Exemption • Effective 5% CIT • Art. 102.1.30 • State Tax

Azerbaijan Micro-Enterprise 75% Profit Exemption Calculator 🇦🇿

Calculate Azerbaijani micro-business tax relief under Tax Code Article 102.1.30: 75% statutory exemption on taxable profits, resulting in an effective 5% corporate tax rate.

Calculation Summary & Statutory Breakdown

Total Net Business Profit --
75% Statutory Exempt Profit --
25% Net Taxable Base --
Actual Tax Payable (Effective 5.0%) --
Total Tax Savings from Exemption --
Comparison: 2% Simplified Turnover Tax --

Micro-Entrepreneurship Tax Exemption (Mikro sahibkarlıq) in Azerbaijan

Under Article 102.1.30 and Article 106.1.20 of the Tax Code of the Republic of Azerbaijan, micro-entrepreneurs enjoy massive tax relief:

  • Micro-Business Qualification: Annual revenue up to 200,000 AZN and up to 10 employees.
  • 75% Statutory Exemption on Net Profits:
    • 75.0% of the net taxable profits of micro-entrepreneurs and micro-companies is completely exempt from tax.
    • Only the remaining 25.0% is taxed at the standard 20% CIT rate.
    • This produces an extraordinarily competitive effective tax rate of just 5.0% on net profits (25% × 20% = 5%).
  • Alternative to Simplified Tax: Ideal for micro-businesses with high deductible operating expenses that would pay more under the 2% gross turnover simplified tax.

Statutory Regulatory Framework: Compliant with the Tax Code of the Republic of Azerbaijan, Labor Code of the Republic of Azerbaijan, Law on Social Insurance (SSPF / DSMF), and regulatory decrees issued by the State Tax Service, Tariff (Price) Council, and State Customs Committee.

📊 Azərbaycan Qanunvericilik və Vergi Hesablama Matrisi

Statutory Component / Legal Deduction Item Calculated Amount (AZN)
Primary Net / Statutory Payable Amount 0.00 ₼
MS

Engr. Muhammad Shahzad

Principal Financial Systems Architect & Azerbaijani Tax Code & SSPF Social Security Specialist

Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.

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