BAKU, Azerbaijan, June 5
By Eldar Janashvili – Trend:
The changes to the Tax Code have been approved upon the Azerbaijani president’s decrees, Trend reports referring to the State Tax Service under the Azerbaijani Ministry of Economy.
Thus, the provisions related to the improvement of the financial condition of taxpayers have been included into the legislation and the application of a temporary tax regime has been launched in the country in connection with a big change in the economic conditions due to the coronavirus pandemic (COVID-19).
While commenting on the main changes in the tax legislation, Head of the State Tax Service Avaz Guliyev said that the changes envisage the introduction of a temporary tax regime and big benefits and exemptions for taxpayers working in the spheres affected by the pandemic.
Guliyev stressed that the spheres of activity affected as a result of the pandemic have been clearly indicated in the law.
The temporary tax regime has been applied in these spheres. They onclude passenger transportation, hotels and motels, tour operators, travel agents, delivery of goods upon orders, training courses, out-of-school educational institutions, psychological centers, sports and health centers, recreation and entertainment centers, cinemas, theaters, museums and concert halls, as well as the spheres the activity of which have been limited by the Operational Headquarters under the Cabinet of Ministers.
Accordingly, big tax benefits are envisaged for taxpayers in these spheres for a period of one year, that is, they are fully exempt from the property and land taxes for 2020 and also receive tax benefits in the amount of 75 percent of their profit or income.
Touching upon other tax benefits, Guliyev said that if taxpayers involved in these spheres rent real estate from individuals, the rental rate of real estate decreases by twofold up to seven percent.
These benefits will be applied for one year. Moreover, the amount that makes up the tax base will be reduced by 50 percent for taxpayers engaged in transportation with a special sign and stably fulfilling their tax obligations. Regardless of the damage caused as a result of the pandemic, the tax rate for micro-entrepreneurs operating throughout the country and who are payers of simplified tax in the amount of two percent also decreases by twofold up to one percent.
Guliyev stressed that the deadlines for the payment of income tax and profit of taxpayers working in unprofitable spheres, as well as people who are not involved in microenterprises, are extended till September 1, 2020. The interest for this period will not be charged. The deadline for filing in income and property tax declarations is also extended till September 1, 2020.
During the pandemic, many taxpayers regularly disinfected their offices and incurred certain expenses. In accordance with the provision in the law regarding the temporary tax regime, the funds spent for the disinfection and preventive measures of taxpayers indicated in the documents will be attributed to the direct unlimited expenses.
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