Quick answer: simplified tax in 2026
- The general simplified-tax rate for other qualifying activities is 2% of gross proceeds; eligibility depends on the statutory criteria.
- Qualifying public-catering businesses above the AZN 200,000 threshold use 8%, while a 6% rate applies to specified POS turnover from 2026.
- The return and payment are due no later than the 20th day of the month following the reporting quarter.
Detailed legal overview
The simplified tax is a lighter regime intended for small and medium-sized business. Its key difference from profit tax is that the tax is calculated on turnover rather than profit — expenses are not taken into account. The reporting period is the quarter.
Who can use the simplified tax?
The regime is available mainly to
- Persons not registered for VAT whose turnover over 12 consecutive months does not exceed 200,000 manats;
- Persons engaged in trade or public catering whose turnover exceeds 200,000 manats (in the manner provided by law).
Mandatory simplified taxpayers
For some activities the regime is not a choice but an obligation
- Taxi and other passenger transport;
- Sports betting and lottery activity;
- Supply of residential and non-residential premises held in ownership;
- Supply of land plots held in ownership;
- Certain individual activities carried out without employees (for example barbers, tailors);
- Building construction activity.
Who cannot use the regime?
- Wholesale trade;
- Rental and royalty income;
- Production of excisable goods and goods subject to mandatory marking;
- Certain financial and licensed activities;
- Those whose residual value of fixed assets at the start of the year exceeds 1,000,000 manats (exceptions may apply);
- Those whose average number of employees in production per quarter exceeds 10.
Object and base of taxation
General rule: gross revenue from sales, works and services during the quarter, together with non-sales income.
| Activity | Base |
|---|---|
| General rule | Quarterly turnover (gross revenue) |
| Transport activity | Vehicle and its indicators (number of seats, tonnage, etc.) |
| Supply of immovable property | Area (sq.m) |
| Betting and lottery | Receipts from ticket sales, or the commission paid to the seller |
| Cash withdrawal | Amount withdrawn |
Simplified tax rates
| Case | Rate |
|---|---|
| Basic rate (on turnover) | 2 per cent |
| Trade and public catering (in cases provided by law) | 6 per cent or 8 per cent |
| Transport activity | Fixed monthly amounts and territorial coefficients |
| Supply of immovable property | 15 manats per sq.m plus a territorial coefficient |
| Betting and lottery — operator/organiser | 6 per cent |
| Betting and lottery — seller's commission | 4 per cent |
| Cash withdrawal | 1 per cent |
How is the simplified tax calculated?
Quarterly turnover × rate = simplified tax
In special cases the calculation uses the fixed amounts, areas and coefficients set out in law.
Example 1 — basic rate
- Quarterly turnover: 50,000 manats
- 50,000 × 2% = 1,000 manats
Example 2 — trade activity
The same 50,000 manat turnover under the special rates for trade
- At 6 per cent: 50,000 × 6% = 3,000 manats
- At 8 per cent: 50,000 × 8% = 4,000 manats
The type of activity can therefore change the tax burden three- or fourfold.
Example 3 — supply of immovable property
- Area: 120 sq.m
- 120 × 15 manats = 1,800 manats (before the territorial coefficient)
Example 4 — cash withdrawal
- Amount withdrawn: 10,000 manats
- 10,000 × 1% = 100 manats
Return and payment
After the end of each quarter, the return is filed and the tax is paid to the state budget by the 20th of the following month.
Frequently asked questions
What is the turnover threshold?
Persons not registered for VAT whose turnover over 12 consecutive months does not exceed 200,000 manats may use the regime.
What happens if my turnover exceeds 200,000 manats?
Those engaged in trade and public catering may remain in the regime above 200,000 manats in the manner provided by law. For other activities the position must be checked separately.
Can I deduct my expenses?
No. The tax is calculated on gross revenue, that is on turnover — unlike profit tax, expenses are not taken into account.
Is there a limit on the number of employees?
Those whose average number of employees in production per quarter exceeds 10 are not eligible for the regime.
When must I file the return?
After the end of each quarter, by the 20th of the following month.
Is the regime optional for taxi activity?
No. Taxi and other passenger transport fall within the cases treated as mandatory simplified taxpayers.
Note: the calculations above are simple arithmetic examples based on the rates stated in this article. The key criteria for correct application are VAT status, 12-month turnover, type of activity and the structure of transactions — these must be checked in each specific case.
Official sources
This article provides general information and does not replace advice based on the facts of a specific matter. Legislation may change; verify current rules before acting.
