Taxation of private notaries in Azerbaijan to change
Azerbaijan, Baku, March 7 / Trend A.Hasanov, A.Akhundov /
Azerbaijan plans to improve the mechanism of taxation of private notaries, the country's government told Trend on Wednesday.
"These changes will be included in the draft amendments to the Tax Code to be submitted to Parliament by May 15. Preparation of draft amendments and supplements to tax legislation is planned to be completed by the end of this week," the source said.
Ministry of Justice prepared proposals to resolve the issues of taxation of private notaries.
Deputy Head of the General Department of Registration and Notary of the Justice Ministry Mehman Soltanov told Trend that the Ministry proposes changes to tax rates for private notaries.
"The adoption of these proposals will enhance the activities of private notaries in the country and create conditions for improving the quality of services," said Soltanov.
Law "On Notariat" which, along with notaries public authorized activities of private notaries, was adopted on November 26, 1999 and entered into force on January 30, 2000.
Soltanov said currently 49 private notaries operate in the country, 32 of which operate in Baku, and 17 - in the regions.
The tax legislation does not provide a separate item of taxation for private notaries.
The Ministry of Taxes of Azerbaijan told Trend on Wednesday that different approaches of taxation are applied now to private notaries operating in Azerbaijan.
"Some of them pay a simplified income tax, some - with income (before deducting expenses)," said the ministry.
The activities of notaries is not a business, so, according to the project of the Ministry of Justice, it is proposed to introduce a 10 percent tax on their income (before deducting expenses), the source said.
"The income of notaries include charges for services rendered by them, state tax and other payments, and a 10-per cent tax will be withheld from their total amount before deduction of expenses," the Ministry of Taxes said.
Only persons engaged in entrepreneurial activities may be payers of simplified tax in the Tax code.
Article 25 of the Law "On Notariat" states that the main purpose of the notary is not aimed at making a profit, and Article 3 prohibits notary from engaging in entrepreneurial activities and performing other paid work except scientific, pedagogical and creative activity.
On the basis of Article 14 of the Law "On Social Insurance" private notary is obliged to pay to the social security fund 20 percent of income as a compulsory insurance amount.
Public Notaries in the country are not taxed.
The official exchange rate is 0.7863 AZN to $1 on March 7.