USAID proposes increasing VAT payment term

Business Materials 28 April 2011 16:30 (UTC +04:00)

Azerbaijan, Baku, April 28 / Trend N. Ismayilova /

USAID proposes to increase a VAT payment term for enterprises with an annual turnover of more than 500,000 manat from one to two months, Mitch Mokhtari, the agency's expert, said at the first conference on taxation in Azerbaijan.

It was organized by the American Chamber of Commerce in Azerbaijan (AmCham) on April 28.

"USAID made recommendations to improve the tax system in Azerbaijan in four areas: paying of VAT under the simplified tax, income tax and improving the tax administration," he said.

USAID also recommends eliminating the tax at source at 10 percent. The non-residents pay this tax from the income earned for the period of activity in the country.

He said that according to Azerbaijani legislation, the simplified tax paid by physical entities with an annual turnover of no more than 90,000 manat is considered an acceptable level.

"We propose to reduce the rate of the simplified tax for legal entities, which amounts to 150,000 manat per year," he said.

The official exchange rate is 0,7914 manat to $1.