Tax and administrative burden of taxpayers to be reduced in Azerbaijan

Tax and administrative burden of taxpayers to be reduced in Azerbaijan

BAKU, Azerbaijan, April 26

By Eldar Janashvili - Trend:

The problems caused by the COVID-19 pandemic are being resolved today through the decisions rapidly made by the Azerbaijani government and a flexible response to the raised issues, including support rendered by the government to the business entities working in the spheres affected by the pandemic and providing them with tax benefits and tax holidays, which are another important step of the government in this sphere.

First of all, when developing the package, tax benefits and tax holidays, the government thoroughly took into account the entrepreneurs’ opinions, clearly showing that it intends to solve the problems of entrepreneurs within the partnership.

The second important moment is the coverage of the preferential package. The proposals prepared by the State Tax Service under the Ministry of Economy envisage the necessary amendments not only to the Tax Code, but also to the social insurance legislation.

One of the key points here is the content of the package of proposals, which generally stipulates that the draft documents have a social core, serve to reduce the tax and administrative burden of taxpayers.

It is planned to fully exempt taxpayers involved in the spheres directly affected by the COVID-19 pandemic since January 1, 2020 from property tax and land tax for a period of one year, as well as a number of tax benefits depending on the taxation method they choose.

So, in accordance with the proposals, taxpayers working in the profit / income tax regime are planned to be provided with tax benefits in the amount of 75 percent of revenues.

Taxpayers operating in the field of public catering and passenger transportation, and paying the simplified tax, are provided with a 50 percent discount, for example, the tax rate in public catering decreases from eight percent to four percent.

Moreover, the reduction in the tax and administrative burden of taxpayers also affected the package of benefits.

So, among the proposed benefits are to reduce the tax rate for individuals levied from the source of payment for the rental of real estate from 14 percent to seven percent, exempt from current tax payments for up to one year and issuing of certificates about current tax payments, extend the deadline for paying the last tax for 2019 until September 1, 2020, extend the period for payment of income tax and property tax calculated for the previous year by taxpayers who are not micro-entrepreneurs until September 1, 2020, defer the accrued interest on compulsory state social insurance and unemployment insurance contributions since April 1, 2020 through January 1, 2021, as well as extend the rights of people engaged in VAT registered public catering from April 20 through September 1 to choose a simplified taxation method for 2020.

There is no doubt that the consequences of a pandemic greatly disturb micro-entrepreneurs. However, the taken measures give the ground to say that there are no grounds for micro-entrepreneurs’ concern.

Thus, there is a particularly sensitive approach towards the micro-entrepreneurs in a package of proposals. The package envisages the benefits for all micro-entrepreneurs, regardless of whether the pandemic affected them or not, which is the great help for them. For example, in accordance with the project, it is planned to provide micro-entrepreneurs with a 50 percent discount on simplified tax - from two percent to one percent of the tax rate.

It is also planned to submit the reports on simplified tax, income tax and property tax as of the first and second quarters of 2020 and to use tax holiday for the payment of accrued tax to the budget until September 1, 2020.

It is planned not to include the periods of time during which the relevant activity is fully or partially limited and to postpone the repayment of taxes for further months upon the Cabinet of Ministers’ decision for taxpayers who are individually engaged in receiving a fixed check.

The proposals also contain the answer to the question about the fate of all other entrepreneurs. So, a number of tax benefits and exemptions covers all business entities.

The benefits of this category include unlimited deduction of expenses from income for the necessary preventive measures which are carried out by the taxpayer to prevent epidemics and protect the life and health of the population, as well as the preterm exemption of certain types of food and medical supplies necessary for the population from VAT.

Finally, one of the most relevant benefits is the exemption of medical equipment and medical supplies, as well as certain types of food products, including baby food from VAT for the period required to combat the coronavirus pandemic, which testifies to the social content of the package.

Economy Department at Trend News Agency

Construction of KAMAZ service centers in Turkmenistan to allow implementation of new projects
Construction of KAMAZ service centers in Turkmenistan to allow implementation of new projects
KAMAZ, Turkmenistan work to expand supply, technical support of vehicles in country
KAMAZ, Turkmenistan work to expand supply, technical support of vehicles in country
Dostlug field to help develop Azerbaijan’s petrochemicals industry – Bryza
Dostlug field to help develop Azerbaijan’s petrochemicals industry – Bryza
Loading Bars
Latest
Half of Azerbaijan's population economically active as of 2020
Azerbaijan disseminates footage from Kendyeri village of Kalbajar district (PHOTO/VIDEO)
TANAP’s gas supplies exceed 9 bcm
U.S. weekly jobless claims decline moderately
Georgian Sweeft Digital company to cooperate with Berlin-based software company in open banking field
Flydubai resumes flights to Georgia
Construction of KAMAZ service centers in Turkmenistan to allow implementation of new projects
SOCAR Aviation starts supplying fuel to Izmir Adnan Menderes Airport
Standard & Poor's predicting growth in Azerbaijani Pasha Bank's 2021-22 capitalization
Turkish YDA Holding constructing multidisciplinary hospital in North Kazakhstan
Total cost of cars exported by Georgia to Azerbaijan down
Reforms in real sector of economy to be main drivers of Uzbekistan’s economy in 2021
Georgia reduces imports of building materials from Azerbaijan
Iran's Sefiddasht-Shahrekord railway project progressing
Azerbaijani population’s nominal income down in 2020
Kazakhstan decreases petroleum oils export to Lithuania amid COVID-19
Azerbaijan confirms 770 more COVID-19 recoveries
No Tsunami risk after 7.0 magnitude quake at sea near Philippines
Number of new apartment transactions down in Georgia's Tbilisi - Colliers International
Azerbaijan shows footage from Dordchinar village of Fuzuli district (PHOTO/VIDEO)
KAMAZ, Turkmenistan work to expand supply, technical support of vehicles in country
Asset quality of Georgian TBC Leasing' deteriorates in 9M2020
Samarkand region leads in total production volume of Uzbekistan’s agriculture, forestry and fisheries fields
Georgia reduces export of cattle to Azerbaijan
Volume of passenger traffic by all vehicles in Azerbaijan down
Azerbaijani minister denies possibility of selling SOCAR’s shares
Azerbaijani ministry talks about project of North-South international transport corridor
Azerbaijan sees decline in 2020 alcoholic, tobacco production
Azerbaijan records slowdown in cargo movement by all types of transport
Kazakhstan amending agreements on int'l road traffic with Georgia
Volkswagen faces EU fine for missing 2020 emissions targets
EBRD supports Georgian currency and capital markets dev't to promote economic resilience
Kazakhstan's revenue from maritime cargo transport surges
Data on 2020 cargo traffic via TRACECA's Azerbaijani segment revealed
Azerbaijan appoints new coach for Women's Artistic Gymnastics national team
Dostlug field to help develop Azerbaijan’s petrochemicals industry – Bryza
Kazakhstan meets local demand in meat by boosting annual production
Azerbaijan reveals 2020 maritime cargo handling figures
Azerbaijani citizens arrested in Libya set free, return home
Azerbaijan discloses amount of Kapital Bank’s deposits accounting for legal entities
Uzbekistan reports increase in cars imports for 2020
Net profit of Georgian commercial banks down
Rehabilitation of tea plantations to enter active phase in 2021 in Georgia
Azerbaijan to make environmental monitoring by UAVs in liberated territories
Azerbaijan - one of most secured countries in CIS with int'l reserves - Gazprombank
Azerbaijan uses innovative method of covered wagons to import Turkish products (PHOTO)
Kazakh, Uzbek companies agree on joint manufacturing of kitchen stoves, water heaters
Iran reveals COVID-19 data for January 21
Azerbaijan Industry Bank’s total assets down in 2020
Iran’s NISOC boosts oil extraction
Uzbekistan’s Central Bank keeps base rate unchanged
Georgia’s beer export to Azerbaijan down
Bitcoin slumps 10% as pullback from record continues
Azerbaijan, Turkmenistan sign memorandum on joint development of Dostlug field
Azerbaijani, Turkmen FMs talk significance of joint collaboration on Caspian Sea (PHOTO)
Kazakhstan taking measures to boost investments co-op with IFC
Iran’s Bahar Azadi gold coin price continues to rise
Turkmenistan considers co-op with number of Austrian pharmaceutical companies
State Commercial Bank Turkmenistan opens tender for consulting services
Iran launches mega refinery project
Important facilities to be upgraded in Iran's Razavi Khorasan Province
Georgian medicine export to Azerbaijan decreases
MoU on Dostluk oil & gas field is new milestone in dev’t of Azerbaijan-Turkmenistan ties - SOCAR
Azerbaijan increases gas export along Baku-Tbilisi-Erzurum route
Azerbaijan discloses total capital of ASB Bank
Azerbaijani banks buy more foreign currency at CBA's auction
Uzbekistan reveals share of retail trade turnover in 2020
Kazakhstan’s only lowcoster launching flights on more new routes
Uzbek-Korean JV to buy electric motor via tender
Azerbaijani ASB Bank reveals its 2020 net income
Azerbaijani SOCAR suspends work offshore, open onshore areas due to bad weather
China remains Uzbekistan’s main trade partner in 2020
Precious metal prices up in Azerbaijan
Turkmenistan bank opens tender for audit
Azerbaijan to open bus routes to Shusha and other liberated lands
Demand for notes of Azerbaijani Central Bank significantly exceeds supply
Azerbaijan looking to create favorable conditions for Turkish investors
Geostat reveals volume of gas imported by Georgia from Azerbaijan
Uzbekistan reveals COVID-19 data for January 21
Kazakhstan’s national atomic company reports COVID-19 cases at its JV with France
Meeting through video conferencing held between presidents of Azerbaijan, Turkmenistan (PHOTO)
Azerbaijan ups trade turnover of food, beverages, tobacco products in 2020
Suicide attack kills three, injures 16 in central Baghdad market
Azerbaijan to be telecommunication hub between Europe, Asia via TASIM implementation
Bank Melli Iran unveils amount of loans issued for coronavirus pandemic
Kazakhstan’s National Bank sets up monetary policy committee
Turkmenistan begins harvesting first tomatoes in new year
Azerbaijani oil prices rising
Kazakhstan multifold decreases imports of Brazil-made goods
Kazakhstan reports decrease in raw sulfur production volume
Azerbaijan discloses volume of oil transportation via BTC pipeline in 2020
Turkish companies to initially invest in textile sector in Azerbaijan's Karabakh
Azerbaijani currency rates for Jan.21
Gold and foreign exchange reserves increases in Uzbekistan in 2021
Iran discloses amount of investments made in petrochemical sector
Azerbaijan's 'Regional Development' Public Association launches new portal (VIDEO)
Trading platform IG to buy U.S. brokerage tastytrade for $1 billion
Turkmenistan among top three countries in terms of potato imports from Russia
Representatives of Turkish companies arrive in Azerbaijan to support restoration of liberated lands (PHOTOS)
Average downloads speed in Azerbaijan reduce
All news