Azerbaijan Awards Tourism Entities Real Estate Tax Breaks
Date
12/27/2023 7:16:11 AM
(MENAFN- Trend News Agency) BAKU, Azerbaijan, December 27. Tourism-related
activities have been awarded Real estate tax exemptions in
Azerbaijan, Trend reports via the
State Tax Service under Azerbaijan's Ministry of Economy.
The bill "On Amendments to the Tax Code" and other relevant
draft legal acts developed to strengthen tax legislation and
administration were adopted in the third reading by Azerbaijan's
Milli Majlis (Parliament). As in previous years, the main goal
directions of Tax Code amendments are to optimize the tax burden of
business entities, stimulate entrepreneurial activity, reduce the
tax burden of the population through social tax benefits, and
improve measures to combat the "shadow economy." The allocation of
real estate tax benefits to tourist subjects (hotels, inns, and
sanatoriums) is one of the significant improvements in the
direction of reducing the tax burden of business and boosting
entrepreneurial activity.
"As it is known, the income of regional tourism is mostly
derived from seasonal activities, with the amount of income in this
sector dramatically reducing during the rest of the year. The asset
value of lodging facilities in the tourism industry is relatively
significant. As a result of being a fixed expense, property tax
imposes a considerable tax burden on seasonally operating firms,"
the State Service noted.
Tax incentives are granted to enhance regional tourism and lower
fixed tax expenses for tourism firms (hotels, inns, and
sanatoriums). To that end, the Tax Code has been amended to provide
for a 75 percent reduction in the tax on immovable property used in
hotel, inn, and sanatorium activities (except for the period of
temporary cessation of entrepreneurial activity in accordance with
Article 16.3 of the Tax Code) in Azerbaijani cities and districts
other than Baku, Sumgayit, Khirdalan, and Absheron district for a
period of three years beginning January 1, 2024. The major goal of
the modifications is to promote regional tourism and reduce
enterprises' fixed tax bills.
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