Tax Officers Hope to Change System of Payments in Housing

The founders of companies and private enterprises engaged in housing construction, in the case of the adoption of amendments to the Tax Code, only a simplified tax will be applied. VAT will be canceled. Recall the simplified tax for residents of the capital is 4% and for the representatives of the periphery it is 2% of the turnover.

According to the Minister of Taxes Fazil Mammadov, during the meeting of the parliamentary committee on economic policy, according to the legislation in force today, the simplified tax is collected from builders, and for the operation of residential areas the value added tax is collected. It is planned to levy a simplified tax from entities without payment of VAT and income and property taxes, and individuals will be exempt from VAT and income tax.

The simplified tax will be 45 manats (today - 10) for each square meter of taxable object (residential and non-residential areas of a building under construction, except for the part allocated to the state, including buildings without contact with other facilities, separate individual or personal residential or country houses). The coefficients in the zones of cities and districts of the country will remain in force.

According to the minister, the expected changes will let not pay taxes before the sale of apartments, which, in turn, will have a positive impact on the construction sector and the financial situation of businesses. --17D-