As it is known, the President of the Republic of Azerbaijan signed an Order dated December 10, 2021 "On some measures related to accelerate economic development in the liberated territories". The Law of the Republic of Azerbaijan "On Social Insurance" has been amended in connection with the implementation of the order.
As amended by legislation, entrepreneurs operating in those areas will be able to reimburse the compulsory state social insurance fees they paid through a subsidy from the state budget. According to the amendment, the compulsory state social insurance fees paid in favor of insured persons who received income from salaried work at the expense of the insurer during the quarter will be subsidized from the state budget for a period of 10 years. The subsidization process will be carried out in stages. Social insurance contributions paid for workers by employers operating in our liberated territories will be fully subsidized by the state until 2026. The subsidy percentage will be 80% for 3 years starting from 2026, 60% for the next 2 years, and 40% thereafter.
In addition to entrepreneurs with salaried employees, natural persons engaged in entrepreneurial activity, including natural persons operating by obtaining fixed receipts and insignia, will be subsidized by the state budget in the amount of 100 percent for a period of 10 years.
The main purpose of the amendment is to create favorable conditions for improving the business environment in the liberated territories, as well as to reduce the costs of insurers to the minimum level.
Subsidization does not apply to contractors in the state and oil and gas sectors, as well as in the non-governmental sector, engaging in the freight transportation activities by financial and motor vehicles, as well as providing goods (works and services) at the expense of the state budget.
The subsidy will be implemented at the expense of the state budget within 30 days after the end of the reporting period stipulated in the Law "On Social Insurance", as well as after the end of the quarter for natural persons acting individually by obtaining a fixed receipt and "Insignia".
