Azerbaijan to Raise Income Tax Rates from January 1

New personal income tax rates on wages come into force on January 1.

Under the new rules, employees with a monthly income of up to 2,500 manats will be subject to a 5% tax rate.

For salaries between 2,500 and 8,000 manats, the tax will be 125 manats plus 10% of the amount exceeding 2,500 manats.

If monthly income exceeds 8,000 manats, the tax will be calculated at 675 manats plus 14% of the amount above 8,000 manats.

Thus, the new scale imposes a higher tax burden on citizens with higher incomes.