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Minister: New amendments to Tax Code to ensure transparency of economy

08 November 2019 [17:35] - TODAY.AZ

By Azernews


By Ofeliya Afandiyeva

Azerbaijan’s Economy Minister Mikayil Jabbarov has said that the draft amendments to the country’s Tax Code will ensure transparency in economy, develop entrepreneurship and simplify the accounting system for tax payments.

Jabbarov made the remarks at a meeting of the country's parliamentary committee on economic policy, industry and entrepreneurship on November 8.

The proposed amendments to the Tax Code cover seven major fields.

They have to do with “ensuring a transparent environment (fight against taxpayers conducting non-trade transactions with the conclusion of false transactions, strengthening control over taxpayers of risk groups, strengthening the fight against cases of tax evasion), improving the administration of VAT, reducing the administrative burden of entrepreneurs and encouraging entrepreneurship, reducing financial (tax) burden of the population through social preferences, the tax burden of business entities, the expanding the base of taxation, fulfillment of obligations on international taxation and information exchange.”

The draft law on amendments to the Tax Code includes 164 paragraphs that will reflect the repeal of simplified taxation of persons involved in the construction of buildings and provision of their activities in a single tax regime (using VAT and income tax), the definition of the concept of "Group of multinational companies", four-year extension of the release from the poultry and meat sales from VAT.

The draft law also envisages minimizing contact between government bodies and taxpayers in the country.

"Enhanced electronic information exchange with government authorities will be helpful in reducing cases of abuse. Improving the free business environment in the country is always in the spotlight," Jabbarov noted.

Furthermore, the minister said that the country’s non-oil sector has increased by 8.9 per cent and this trend is expected to continue in the following years.

In the past ten years, the volume of the non-oil sector in Azerbaijan’s GDP increased by 2.8 times, while the total GDP increased by more than three times.

The last amendments to the Tax Code were approved by the presidential decree in December 2018 and entered into force in January 2019.

Under this amendment, the income tax for individuals working in the private sector and non-oil and gas industry with a monthly income of up to AZN 8,000 was set at 0 percent, the monthly income more than AZN 8,000 – at 14 percent. The new amendment will be valid for 7 years.

URL: http://www.today.az/news/business/188112.html

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