Expert: Azerbaijan should change simplified taxation regime
Azerbaijan, Baku, April 30 / Trend A. Akhundov /
Azerbaijan should change its simplified taxation regime, 'PricewaterhouseCoopers Azerbaijan' Baku office senior manager Arif Guliyev said.
"It is not necessary to conduct cost accounting given the simplified tax regime in Azerbaijan," he told Trend today. "Tax is withheld and drwan from the income. This creates conditions to purchase goods in cash, non-registration of operations and thus avoiding taxation."
He said that there is the need to maintain a simplified tax regime. However, it needs changing.
"Taxation in this way may be applied to the income after deducting expenditure," he said. "For example, the tax rate is 20 per cent for ordinary taxpayers' income. Then lower rates can be applied in the simplified method, or any specific policy of tax accounting and so on may be created."
He added that it could become one of the ways to reduce the volume of cash transactions. "It is possible to stop and limit the development of the shadow economy by reducing cash payments," Guliyev said.
According to Azerbaijani tax legislation, the simplified tax is paid by those with an annual turnover not exceeding 90,000 manat, and the level of simplified tax for legal entities is 150,000 manat per year.
The simplified tax rate is four per cent for Baku and two per cent for the regions.
The official exchange rate is 0,7862 AZN/USD on April 30.