Azerbaijan reveals total value of tax benefit package envisioned due to COVID-19
BAKU, Azerbaijan, Apr. 28
By Elchin Mehdiyev - Trend:
The total cost of a package of tax benefits intended for entrepreneurship entities operating in areas affected by the COVID-19 pandemic is about 114 million manat ($67 million), said First Deputy Minister of Taxes Sahir Mammadkhanov at a meeting of Azerbaijani Parliament’s committee on economic policy, industry and entrepreneurship, Trend reports.
He noted that a new 18th chapter (temporary tax regime applicable in connection with a significant change in economic conditions as a result of the spread of the coronavirus pandemic) shall be added to the national Tax Code.
The respective amendment envisions offering tax benefits in full of property and land tax in the amount of 75 percent of profit (income) to taxpayers in areas directly affected by the pandemic.
Moreover, along with the incentives on property and land taxes, it’s envisioned to grant the taxpayers, who are engaged in catering services and passenger transportation and pay simplified tax, with a 50 percent discount in the amount of the simplified tax.
Besides, it’s planned to provide a number of other benefits in the areas of economic activity negatively affected by the pandemic, including reduction of the tax rate on individuals, levied from the source of payment for renting a real estate from 14 to 7 percent, their exemption from current tax payments for a period of one year and the issuance of statements on current tax payments.
The proposed benefits also include extension of the deadline for paying the final tax envisioned for 2019 until September 1, 2020, extension of deadline for paying accrued profit (income) and property tax of taxpayers, who are not micro entrepreneurship entities, until September 1, 2020, as well as a deferment of interest on unpaid taxes, compulsory state social insurance and unemployment insurance fees from April 1, 2020 to January 1, 2021.
It’s intended to provide the micro entrepreneurship entities with a 50 percent incentive on simplified tax, ease submitting simplified tax, income tax (property) and property tax reports by them for the 1st and 2nd quarters of 2020 and grant them tax vacation until September 1 of the current year for payment of accrued taxes to the state budget.
The proposed tax benefits also include the deduction of expenses incurred by the taxpayers for necessary preventive measures, including disinfection covering all the micro entrepreneurship entities, and VAT-exemption of certain types of products necessary for food and medical needs of the population.