Azerbaijan Changed Taxation of Companies Engaged in Housing Construction

Politics Materials 16 January 2007 17:20
Azerbaijan Changed Taxation of Companies Engaged in Housing Construction

Starting from January 1, 2007, Azerbaijan has changed the system of taxation of companies engaged in housing construction in the country.

Akif Musayev, the Chief of the Central Department for Tax Policy and Strategic Researches of the Azerbaijan Taxes Ministry, said during the today press-conference that applied property and profit tax, however, starting from 2007, these companies have turned into the simplified taxation system.

The companies will pay 10 AZN per 1 square meter. Coefficients are expected to be introduced depending on the territorial placement of housing construction.

According to Mr. Musayev, the proposals have already been prepared and will be submitted to the Cabinet of Ministers for approval.

The above-mentioned payments system for construction companies was introduced for the term of 2 years and each quarter вЂ" 12% out of the total payment. The total volume of payment which will be separated by 8 equal parts with paying them within two years is expected to be set up.

The Cabinet of Ministers will also approve the indicator of minimal turnover. Taking into consideration this indicator, companies engaged in housing construction will pay VAT.

Though simplified tax payers are not subjected to VAT, housing construction will be an exception, said the Chief of the Department of the Ministry.

According to Mr. Musayev, changing the housing construction taxation system will not lead to a tax burden.