New tax legislation to strengthen market control and combat shadow economy

One of the key innovations aimed at systematically combating the "shadow economy," enhancing tax control mechanisms, and expanding the tax base involves recent changes to tax legislation governing market operations, Azernews reports, citing the State Tax Service (SST) under the Ministry of Economy.

According to information, these changes stipulate that tenants can only operate in markets once the properties they rent are registered with the tax authority. Market owners are responsible for ensuring this registration.

Additionally, when real estate is used for entrepreneurial activities in markets, the owner must display registration details—such as the taxpayer’s name and tax identification number (TIN)—at the entrance of the business premises.

Under the new legislation, market owners are also required to submit quarterly reports to tax authorities, detailing tenants whose lease agreements have ended, those who have ceased operations, and those who continue to operate. These requirements do not apply to agricultural product markets or agricultural cooperatives.

The amendments to the Tax Code, designed to enhance tax control over markets, will take effect nine months after the law is adopted. Market owners will also have six months to ensure that all unregistered properties are registered with the tax authority and that tenants comply.

These changes are expected to prevent illegal business activities, strengthen accounting discipline, ensure timely tax payments to the state budget, and protect consumer rights. Ultimately, the amendments will help formalize market operations, encourage legal compliance, and foster greater transparency.