BAKU, Azerbaijan, Nov. 30
Trend:
The privileges may be given in Azerbaijan to support taxpayers offering local transport and forwarding services, Trend reports citing the State Tax Service under the Azerbaijani Ministry of Economy.
The proposed package of amendments to the Tax Code is already being discussed in the parliament.
The main spheres of the proposed changes to the legislation include stimulating of entrepreneurial activity, expanding of the tax base, reducing of the financial and tax burden on the population through social benefits, improving of tax accounting, taxation and tax control mechanisms and providing tax incentives for business.
As far as the bill is being discussed, the State Tax Service under the Ministry of Economy disclosed some of the proposed changes.
One of the important changes which is proposed to be made in the Tax Code is to apply a VAT rate of 0 percent while rendering freight forwarding services related to the international and transit cargo transportation.
According to the current legislation, a VAT rate of 0 percent is applied to the international and transit cargo and passenger transportation, as well as cargo handling services directly related to the transit cargo transportation.
A VAT rate of 18 percent is applied for rendering freight forwarding services related to the international and transit cargo transportation, which are additional transport services associated with this activity.
According to the proposed amendment to the Tax Code, it is envisaged to apply a VAT rate of 0 percent for rendering freight forwarding services directly related to the international and transit freight and passenger transportation to promote freight forwarding services, ensure the stability of local transport and forwarding services amid foreign enterprises engaged in similar activity in other transit countries.