BAKU, Azerbaijan, Oct. 3
Trend:
Azerbaijan is applying a number of benefits for entrepreneurs in order to expand use of non-cash payments, Azerbaijani State Tax Service under the Ministry of Economy of Azerbaijan told Trend.
The service representative said that these benefits are of a stimulating nature and are regulated by legislative acts.
"Azerbaijan applies benefits which are provided for both individual entrepreneurs and legal entities engaged in trade activities on selling goods in the retail sector," the service said.
The service said that according to Articles 102.1.24., 106.9., 218-1.2. of the Tax Code of Azerbaijan, the amount of income tax payable to the budget by an individual entrepreneur, legal entity and payers of simplified tax operating in the field of trade and (or) public catering for the sale of goods in retail trade, from January 1, 2019, is reduced by 25 percent from the tax, established in accordance with the share in the total income of payments made in non-cash form through the POS-terminal, established by the Law of the Republic of Azerbaijan "On Protection of Consumer Rights", for a period of 3 years.
"When determining the right to receive such a benefit, the amount of payments made by persons registered with the tax authority through a POS terminal is not taken into account," the representative said.
The service emphasized that the amount of income and profit tax payable to the budget by an individual entrepreneur and legal entities engaged in trade and public activities for the sale of goods through retail trade is reduced by three years in the amount of 25 percent of the tax determined in accordance with with the specific weight of the total income of payments made in non-cash form through a POS terminal.
"This provision in the Tax Code is aimed at encouraging the use of a POS terminal for non-cash transactions. The use of the exemption enables individuals involved in retail trade and catering to pay less income or income tax," the department noted.
