New Tariffs on Property, Including Individuals

As reported by Turan yesterday, the Cabinet of Ministers approved the ratios for the amount of tax on the metropolitan individual property. The procedure for calculating was published in the Government Decision №101 of 6 April.

As mentioned in the information on the website of the Ministry of Taxes, the coefficients are determined by 12 areas of the capital property. For the first area the ratio is 1.5 and beyond - in descending order. For the second zone - 1.4, for the third - 1,3, fourth - 1.2, fifth - 1.1, sixth - 1.00. Beginning with the seventh zone, sparing factors are defined - from 0.95 to 0.7 in the 12th area of ??the capital.

The most popular first zone includes the area from the Palace of Hand Games on the Boulevard (Sabail district) to Richard Zorghe Street near Richard Zorghe Park (Nasimi district). The last, 14th area includes remote settlements of the Garadag, Khazar and Sabunchu districts.

According to the text, the new rules came into force on January 1 this year. For those interested, there is a link (http://www.taxes.gov.az/uploads/qanun/2015/nk/06042015elave.pdf).

Recall that earlier if the average property tax was levied at the rate of inventory value of the building, from the beginning of the year they started to use a progressive tax (depending on the area privately owned). The poor are virtually exempt from tax, as in accordance with the amended Tax Code approved in 2014, an area up to 30 square meters of property is not taxed.

According to the amendments to the Tax Code, the property tax rates are as follows: for Baku - 40 kopecks per year for each square. m exceeding 30 square meters, for the Absheron district, as well as the cities of Ganja and Sumgait - 30 kopecks, for other regional centers and towns of the republican subordination - 20 kopecks, for other cities, towns and villages (with the exception of Baku, Sumgait and villages in the Absheron district) - 10 kopecks.

There are also fees for land and dacha plots of citizens, as well as yards of the residential fund in industry, construction, transport, communications, trade and consumer services. For the second category in Baku and its suburbs - 10 manat for every 100 square meters within 1 hectare, more than a hectare - 20 manat. In Ganja, Sumgayit, Khirdalan and Absheron - 8 and 16 manat, respectively. In other cities and regional centers - 4 and 8 manat, and in other localities - 2 and 4 manat. Rates for the first category, respectively are 0.6 and 1.2, 0.5 and 1, 0.3 and 0.6, 0.1 and 0.2 AZN.

Previously, the property tax was collected by municipalities, but they could not cope with the task, as the inventory value of buildings had not been determined.

Now the payment of local taxes by individuals is centralized and carried out through banks, post offices and e-terminals for cashless payments. --17D-