BAKU, Azerbaijan, Oct. 29
Trend:
Azerbaijan’s tax authorities are proposing to reimpose VAT, income tax or tax on profits on homebuilders, Trend reports referring to a government source.
The change is envisaged in the amendments to the Tax Code, sent for consideration to the Azerbaijani Parliament.
According to the proposed amendments, persons involved in housing construction will be deprived of the right to pay only simplified tax, and will pay VAT and income tax if the builder is a legal entity, or VAT and tax on profits if the builder is an individual.
Previously, persons involved in housing construction were given the right to pay only simplified tax and at the same time be exempted from paying VAT, tax on profits, income and property taxes.
If these persons did not exercise the right to be payers of simplified tax (regardless of the area of buildings under construction), they were registered as VAT payers, and at the end of the year they paid income tax.
The current housing construction tax system has been applied since Jan. 1, 2016.
Thus, a return to the system that was used before Jan. 1, 2016, will expand the tax base.
If amendments are adopted, they will enter into force on Jan. 1, 2020.