Azerbaijan, Baku, Jan. 7 / Trend A. Akhundov /
The issue of introducing a consolidated taxation system of integrated organisations became urgent for Azerbaijan, director of the General Directorate for Tax Policy and Strategic Studies of the Ministry of Taxes Akif Musayev said today.
'Taking into account Azerbaijan's rapid integration into the world economy, it is necessary to consider the issue of including items on the consolidated taxation system in the Tax Code', Musayev's article, published in the Ministry's newspaper Taxes said.
He said that the system is characterised by the following features in world practice:
- A group of integrated organisations (a holding) is considered as a single taxpayer;
- The main organisation included in the group, fulfils the obligation to pay taxes;
- A group's tax liability is declared by a single tax declaration;
- Income and expenses of members of the group are mutually taken into account;
- Intra-group transactions are exempt from taxation within certain limitations.
"The consolidated taxation system is being applied in many developed countries, including the U.S., Great Britain, France and Germany," Musayev said.