Cabinet of Ministers: Radical reform of the tax system will be implemented soon

Baku. 13 November. REPORT.AZ/ “As in all countries of the world formalization of labor relations, protection of labor and social rights of citizens is very important for Azerbaijan. Non-formal employment seriously hinders labor market regulation, tax, social insurance and other mandatory payments, and employee's future social security rights," Commission for Regulation and Coordination of Labor Relations of the Cabinet of Ministers told Report.

Significant steps are taken to eliminate informal labor relations in Azerbaijan.

"On March 17, 2017, by the order of the President of Azerbaijan Ilham Aliyev, in order to formalize the employer-employee relations, to improve the mechanisms for controlling the payment of labor and to implement a more coherent policy between the state bodies in this area, the Commission on Regulation and Coordination of Labor Relations was established and the Action Plan on the Prevention of Non-formal Employment in the Republic of Azerbaijan on October 9, 2017 was approved.

In order to prevent informal employment in the country, relevant working groups have been set up under the Commission, the existing legal framework has been improved, and draft amendments to a number of normative legal acts have been prepared.

As a result of the effective work of the Commission, the  number of active legal entities operating in the country as well as individuals who are physical persons have recently grown dramatically in the country.