BAKU, Azerbaijan, Dec. 19
By Eldar Janashvili - Trend:
Azerbaijan’s Taxes Ministry spoke about amendments to the Azerbaijani presidential decree dated Sept. 5, 2012 No. 706 “On ensuring activity of State Agency for Public Service and Social Innovations under the President of Azerbaijan,” Trend reports referring to the press service of the ministry.
So, starting from Jan. 1, 2020, there are plans to abolish the right of persons involved in the construction of buildings for simplified taxation and apply tax liabilities to them in a single way - as payers of VAT and income tax.
Prior to this date, a taxpayer, who began construction work and to whom a simplified taxation method is applied, will continue paying taxes on construction and installation work in the same manner.
Taxpayers who began construction and installation work starting from Dec. 1, 2019, have the opportunity to choose a taxation method for construction and installation work until Jan. 1, 2020.
According to article 2.2 of the law, a taxpayer who began construction and installation work after Dec.1, 2019, must submit to the tax authority, where he or she is registered, the information about the chosen method of taxation for construction and installation work until Jan. 1, 2020.
Otherwise, tax liabilities for the constructed buildings will be calculated in the manner prescribed by the law “On Amendments to Azerbaijan’s Tax Code”, that is, the taxpayer will pay VAT and income (profit) tax.