Azerbaijan introduces tax concessions over COVID-19

(MENAFN- AzerNews)  

By Ayya Lmahamad

Azerbaijan continues implementing support measures and programs to mitigate the impact of the coronavirus pandemic on economy and businesses.

The country has introduced significant benefits for taxpayers working in areas affected by the pandemic are provided with significant benefits, according to the State Tax Service.

Thus, taxpayers whose businesses have been affected by COVID-19 are completely exempt from property and land taxes, and have been given tax breaks of 75 percent of their income.

Moreover, for individuals who rent real estate, the rental rate has been reduced from 14 to 7 percent.

The deadline for the payment of income taxes for taxpayers, and those who are not micro-entrepreneurs engaged in the affected areas have been extended to September 1, 2020.

Additionally, the deadline for filling a simplified tax declaration by micro-entrepreneurs for the first and second quarters of 2020, has been extended to September 1, 2020.

On August 19, a new version of the "Program for compiling a declaration" was launched, which enables taxpayers operating in areas affected by the pandemic to submit electronic "tax returns, with the application of appropriate benefits and exemptions," "land tax returns" and "income tax returns to tax authorities.

Currently, work is under way to record benefits and exemptions when compiling declarations for other payments, including value added tax, income tax and property tax in electronic form. In the near future, the electronic form of these declarations will also be available to taxpayers.

Earlier, it was reported that as part of the second phase of financial support program to businesses, AZN 50.38 million ($29.6M) have been transferred to the bank accounts of 22,603 taxpayers affected by coronavirus pandemic as of August 19. Some 228,175 employees are among those receiving the financial aid.

The number of employees covered by the second phase of the financial support program is by 112,177 more than the number of employees who received funding in the first phase, due to the increase in the number of employees who signed employment contacts as a result of transparency.

Earlier, it was reported that legal entities and individual entrepreneurs in Azerbaijan operating in the spheres negatively affected by the COVID-19 will be exempted from rental payment for the period of nine months.

Thus, according to the amendment, legal entities and individual entrepreneurs operating in the spheres negatively affected by the coronavirus pandemic in the territory of Azerbaijan, except for legal entities controlled by the state, the rent established in accordance with regulation will not be charged from April 1, 2020 till January 1, 2021.


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