Amendments to Tax Code Approved

The current composition of the Milli Majlis at the last meeting approved amendments to the Tax Code.

As Turan wrote earlier, now the individuals engaged in trade and catering will pay the simplified tax, regardless of the size of their turnover. Traders will pay 6%, and restaurateurs - 8% of the turnover.

Fines for violation of the rules of cash payments by entrepreneurs in trade and catering have grown. So, for a first offense in a calendar year he will have to pay 2 thousand AZN (which was 400 manats before). For the second time the fine will double up to 4 thousand AZN (now - 800 manats). For the third time the entrepreneur will have to pay 6,000 AZN (now - 1,200 manats).

Also accepted were the proposals on taxation (10%) of winning in sports betting.

Also approved was the amendment that the legal entities and individuals dealing with housing will only pay the simplified tax without VAT. This amount is calculated from the base of 45 manats (today - 10 manats) per square meter plus a coefficient applied to the zones of cities and districts of the country.

The amendments also touched upon the property of satellites and other space objects. At the same time they introduced the property tax in respect of product lines. The changes will also affect the list of products and services exempt from VAT.

The legislative powers of the Ministry of Taxes were enhanced - it has the right to apply to the courts with an initiative to restrict exit of tax debtors abroad, in particular regarding the companies’ head officials. Amendments to the Tax Code will come into force on 1 January next year. --17D-