All business entities may be provided with tax holidays in Azerbaijan

Finance Materials 22 April 2020 14:10 (UTC +04:00)
All business entities may be provided with tax holidays in Azerbaijan

BAKU, Azerbaijan, April 22

By Eldar Janashvili - Trend:

All business entities may be provided with tax holidays in Azerbaijan, Trend reports on April 22 referring to the Azerbaijani Taxes Ministry.

In accordance with the Action Plan approved upon the resolution of the Cabinet of Ministers on April 4, 2020, the Azerbaijani Ministry of Taxes has been tasked to provide entrepreneurs working in the spheres affected by the pandemic with tax benefits and vacations.

Thus, the package for all business entities envisages deductions of taxpayer expenses for necessary preventive measures, including disinfection carried out by taxpayer to prevent an epidemic and protect the life and health of the population, from the income without taking into account restrictions, as well as periodic exemption of certain types of food and medical supplies necessary for the population from VAT.

The necessary medical equipment and supplies, as well as certain types of food products to meet the needs of the population, including food for children, will be temporarily exempt from VAT within the fight against the coronavirus pandemic.

The social insurance burden of a number of enterprises operating in the districts affected by the coronavirus pandemic may also be reduced. The concessions which are being discussed in this regard cover a wide range.

The package of proposals on tax incentives was widely discussed with the state structures, public organizations of entrepreneurs, including the National Confederation of Entrepreneurs (Employers’) Organizations, the Azerbaijan Banks Association, as well as with business entities operating in individual sectors within the working group created to assess the negative impact of the coronavirus pandemic (COVID-19) on the national economy.

In this regard, the Azerbaijani Ministry of Economy prepared the proposals on the necessary amendments to the Tax Code and the Azerbaijani law "On Social Insurance". After re-consideration in the government, draft documents included in the package of proposals were submitted to the Azerbaijani parliament.


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