Azerbaijani Parliament adds new chapter to tax code
BAKU, Azerbaijan, May 8
By Elchin Mehdiyev – Trend:
A new, eighteenth chapter has been added to the Tax Code of Azerbaijan entitled 'temporary tax regime applicable in connection with a significant change in economic conditions as a result of the spread of the coronavirus pandemic', Trend reports on May 8.
The issue was discussed at the Azerbaijani Parliament.
According to the amendment, taxpayers in areas directly affected by the pandemic and envisaged in the document, are offered tax benefits in full of property and land tax in the amount of 75 percent of profit.
Moreover, taxpayers engaged in catering and passenger transportation, who are payers of simplified tax, along with the above-mentioned privileges on property and land taxes, are provided with a 50 percent discount to the amount of simplified tax.
Also, it is planned to provide a number of other benefits in the areas of economic activity that have felt the negative impact of the COVID-19 pandemic, including reducing the tax rate for individuals levied from the source of payment for renting real estate from 14 to 7 percent, 1 year exemption from paying current tax payments and issuing certificates of current tax payments, extending the deadline for paying the last tax for 2019 until September 1, 2020, extending until September 1, 2020 accrued profit and property tax borrowers who are not subjects of micro entrepreneurship, as well as deferral of accrual of interest on unpaid taxes, compulsory state social insurance and unemployment insurance contributions from April 1, 2020 to January 1, 2021.
Among these benefits, taxpayers are also provided with a deduction of expenses for necessary preventive measures from income excluding; tax exemptions, and exemption from VAT of certain types of products necessary for food and medical needs of the population, without taking into account the limitation of expenses incurred for disinfection.
The total cost of the package of tax benefits is about 114 million manat ($67 million).
After discussions, the amendment was put to the vote and adopted in the third reading.