Post by conflict on Dec 25, 2015 10:47:45 GMT 4
Preventing individuals who have tax debts from leaving the
country
The tax authorities will now have the right to obtain a court
order to temporarily restrict the rights of taxpayers who have tax
debts from leaving the country. This restriction will also apply to
the heads of management bodies of legal entities that have tax
debts.
Severe penalties for the violation of cash settlement rules by
persons involved in trading and public catering activities
Penalties for the violation of cash settlement rules by persons
involved in trade and/or public catering activities whose income in
any month or months during a consecutive period of 12 months
exceeds AZN 200,000 will be as follows:
- One-off offense – AZN 2,000
- Second offense within one calendar year period – AZN
4,000 - Three or more offenses within one calendar year period –
AZN 6,000
Certain income tax changes
Income from sport betting games will now be subject to a 10
percent withholding tax.
A tax benefit equal to one living wage will apply to monthly
employment income of up to AZN 2,500. For annual income of up to
AZN 30,000, the tax benefit will be 12 times the living minimum
wage. The living minimum wage for 2016 is established as AZN
136.
Taxation of the sale of immovable property
Sellers of residential and non-residential property, except for
individuals who sell residential property where they have resided
for at least 5 years, will become simplified taxpayers. The
applicable tax will be AZN 15 per each square meter of the
property, multiplied, depending on the location of the building, by
a coefficient ranging from 0.5 to 4.0 for residential areas and a
coefficient of 1.5 for non-residential areas. The tax will be
withheld by notaries who will certify the sale and purchase
transaction.
VAT threshold increased
The threshold for obligatory VAT registration will be AZN
200,000. Previously, it was AZN 120,000.
VAT exempt list of operations increased
The VAT exempt list will now include the import of goods by
humanitarian organizations for humanitarian aid purposes; the
import of goods by individuals other than for industrial or
commercial purposes; the import of goods for special economic zones
(except for excise goods) and the import of equipment and materials
for export oriented oil and gas activities; as well as the import
of fixed assets which are the object of leasing agreements.
Mining tax rates increased
In most cases, the mining tax has increased two-fold.
Major amendments to the simplified tax introduced
Simplified taxpayers may be
(i) Persons who have the right to become such taxpayers
- Whose income in any month or months during a consecutive period
of 12 months does not exceed AZN 200,000 - Who are involved in trading and/or public catering activities
whose income in any month or months during a consecutive period of
12 months exceeds AZN 200,000 - Who are involved in building construction
(ii) Persons who are simplified taxpayers, irrespective of the
above
- Who are involved in passenger and cargo transportation using
their own vehicles or vehicles in their use or involved in
transportation based on an agreement though other persons - Who are operators and sellers of sport betting games
- Who are sellers of residential and non-residential property,
except for individuals who sell residential areas where they have
resided for at least five years
Simplified tax in respect of trade activity will be six percent
of sales turnover (less turnover with regard to the sale of goods
with state regulated prices) and for public catering activity
– eight percent of sales turnover.
Simplified tax on persons involved in construction activity will
be AZN 45 per square meter of the property, multiplied, depending
on the location of the building, by a coefficient from 0.5 to 4.0
for residential areas and coefficient of 1.5 for non-residential
areas.