Azerbaijan introduces temporary tax regime

Business Materials 26 August 2020 16:20 (UTC +04:00)
Azerbaijan introduces temporary tax regime

BAKU, Azerbaijan, Aug. 26

By Eldar Janashvili – Trend:

A temporary tax regime has come into force in Azerbaijan for taxpayers working in the spheres affected by the pandemic, where they have been provided with tax breaks and tax exemptions, Trend reports citing the Azerbaijani Tax Service.

“As part of the amendments to the Tax Code, taxpayers were provided with special privileges and tax exemptions, as well as the changes were made to the reports that must be submitted to the tax authorities to use the relevant benefits and tax exemptions,” Deputy Head of the Main Directorate of the State Tax Service under the Azerbaijani Ministry of Economy Elmir Ramazanov said.

As part of the changes, the corresponding individuals are fully exempted from property tax and land tax in 2020 and also receive tax breaks worth 75 percent out of profit or income in 2020. Moreover, in the case of renting real estate, the tax rate on rental fee was reduced by half, down to seven percent.

For those paying a simplified tax on public catering facilities operating in a simplified regime at a rate of eight percent, the tax rate has been reduced down to four percent and two percent, for others paying a simplified tax – down to one percent.

The imported products are exempt from VAT and air carriers transporting passengers are completely exempt from property tax to ensure the health and necessary needs of the population during the period of the temporary tax regime.

Ramazanov stressed that to reflect these benefits and tax exemptions in the declarations of the State Tax Service, several declarations, forms, and rules were approved.

“First of all, after making amendments for the payers of the simplified tax, a "simplified tax declaration" was introduced. A new version of the program related to declarations has been launched since August 19,” the deputy added.

“Currently, the work is underway to take into account benefits and tax exemptions when submitting e-declarations on value-added tax, income tax, and property tax,” Ramazanov said.

The deputy stressed that these declarations will be sent to the taxpayers in e-form soon.