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Tax amendments in Azerbaijan consider interests of business sector – ministry

03 December 2018 [15:59] - TODAY.AZ

By  Trend


Amendments to the tax legislation in Azerbaijan, which will come into force Jan. 1, 2019, consider the interests of the business sector and have been developed in accordance with the strategic road maps, Samira Musayeva, director general of the Tax Policy Department of Azerbaijan’s Ministry of Taxes, said at a briefing Dec. 3.

She noted that the amendments are aimed at the implementation of the tasks set before the ministry in the strategic road maps.

In the process of their development, meetings with entrepreneurs were held and international trends were studied, she said.

Musayeva noted that the amendments can be divided into five areas: ensuring transparency of taxation, expanding the taxable base, improving tax administration, supporting the development of entrepreneurship, increasing the economic efficiency of benefits and exemptions.

She noted that one of the significant changes was the exemption of employees with a monthly income of up to 8,000 manats from income tax.

Another important amendment is the return to taxpayers of 15 percent of the goods’ value when implementing non-cash payments and 10 percent on the basis of a cash register check for cash payments, she said.

The changes also affect the articles on tax administration, she added.

In order to improve it, for example, next generation cash registers will be installed, and taxpayers will be registered in the area where they carry out economic activities, Musayeva said.

The issue of expanding the rights of taxpayers and supporting entrepreneurship was also discussed.

Musayeva said that according to the changes, simplified tax throughout Azerbaijan will be 2 percent (presently, it amounts to 4 percent for Baku and 2 percent for districts).

At the same time, in case of administrative complaints, the tax authorities will no longer withdraw funds from the deposit, but freeze them, she noted.

Entrepreneurs who will operate in clusters of small and medium businesses will be exempted from income tax, land tax and profit tax for a period of seven years, startups in the small and medium businesses segment will also receive benefits in the form of exemption from profit tax and income tax for a period of three years, she added.

URL: http://www.today.az/news/business/176625.html

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