Azerbaijan proposes taxing individual couriers at a fixed rate

Individuals engaged in courier activity on an individual basis (without hiring employees) are proposed to calculate the simplified tax on the basis of a fixed monthly amount (15 manats).

As 1news.az reports with reference to APA, this is reflected in the proposed amendment to the Tax Code.
It is noted that the delivery of orders by couriers is carried out using various means of transport, such as cars, motorcycles, bicycles, and scooters. Such persons practically lack the skills to submit reports to the tax authorities and to keep records of income and expenses, and in many cases the existing administrative burden pushes them to carry out their activity informally.

At the same time, courier activity has in recent years developed rapidly alongside the expansion of e-commerce and has turned into a service sector carried out mainly by individuals operating on an individual basis, without hiring employees. In this regard, it is proposed to establish a simplified tax based on a fixed monthly amount and to fulfill tax obligations by means of a fixed receipt. This will significantly simplify the administration of tax calculation, payment, and reporting, as well as reduce accounting costs.

The proposed fixed tax model also facilitates control and administration for the tax authorities, encourages the formalization of transactions, and makes it possible to ensure more transparent accounting of turnover in the sector. As a result, the transition of couriers operating informally to official activity is stimulated, and the operating expenses of entrepreneurs are reduced.