The Government of Azerbaijan changed the taxation system for the housing construction. The Taxes Minister of Azerbaijan, Fazil Mammadov, informed Trend that after the Azerbaijani President confirmed the law On making amendments and appendixes to the Tax Code, coefficients will be made, on base of which the buildings will be applied with taxation. The coefficients will differ depending on the location of the housing complexes.
The Minister is against the opinion that after application of this taxation mechanism, the houses will become more expensive.
For each square meter, the coefficient may be defined for suburb of Baku and center of the capital, beginning from AZN 10-15 to AZN 150.
The taxes will be applied not to contractor companies, but owners of the housing complexes. This payment system for the construction companies has been made for two years under 12,5% out of gross payment in each quarter. It is intended to appoint the gross amount of the payment, which will be divided into 8 parts.
The construction companies will be able to think of their financial plans beforehand. The necessity of changing the taxation system appeared due to the issue that the construction companies hide their revenues, and the State budget is left out from this business, said Mammadov.