MSU students are bound by the amendments to the Tax Code

took part in an educational event

Employees of Territorial Taxes Department # 11 held an event to inform taxpayers in the assembly hall of Mingachevir Municipality. Responsible representatives of small and medium entrepreneurship entities, legal and physical taxpayers operating in Mingachevir, and students and teachers from Mingachevir State University attended the event.

Gudrat Mammadov, Director of Tax Payers Service and Transparent Tax Partnership Department, Department of Territorial Taxes # 11 noted that the Tax Code of the Republic of Azerbaijan, dated November 30, 2018, No. 1356-VQD, "On Making Amendments to the Tax Code of the Republic of Azerbaijan" important changes have been made:

• Support for entrepreneurship;

• Reduction of tax avoidance and the "shadow economy";

• Expansion of the tax base;

• Improvement of tax administration;

• Improving the effectiveness of tax rebates.

According to Gudrat Mammadov, the monthly salary of physical persons working in the taxpayers who are not engaged in the oil and gas sector and who are not involved in the oil and gas sector, is higher than 8000 manats, while the salary is higher than 8000 manats or more than 8000 manats % determined by volume. The new approach is expected to apply from 1 January to 7 January 2019.

The director said that the excise rates applied to cars imported to Azerbaijan are increasing.

It is also mentioned in the document that alcoholic, non-alcoholic energy drinks, cigars and electronic cigarettes produced in Azerbaijan are excluded from the excise tax.

According to the document, the excise tax of 12 manat cigarettes from tobacco and its substitutes will be raised to 20 manat.

According to these commodities, the amount of the quiz is calculated at the exclusion rate by applying the actual amount of those goods.

According to the draft amendments to the Tax Code, imported buses to Azerbaijan will also be subject to excise tax.

Under the amendment draft, a 6% simplified tax is canceled for those involved in trading activities. The 8% simplified tax rate on public catering activities is kept.

According to Gudrat Mammadov, according to another amendment, the simplified tax (except for the taxpayers referred to in Article 218.4.2 of the Code, except for the taxpayers referred to in Article 218.4), shall include the payment of taxpayers' payment of goods, works, services 2% from the amount of the proceeds (total production volume) and out-of-sale revenues.

It should be noted that at present, this tax is 4% in the city of Baku, 2% in the other city, district and Nakhichevan Autonomous Republic.

In other words, VAT paid for goods purchased by retailers or public catering companies in Azerbaijan by consumers of physical persons can be refunded 15% on non-cash payments and 10% on cash payments.

In addition, tax evasion for 3 years from the date of acquisition of startup certificates by micro and small entrepreneurship entities and legal entities acting as a legal entity in Azerbaijan has been confirmed.

The director said that according to the amendment to the Code, at least three years, the taxpayer received 50% of its share of the ownership interest or the share of the entity, 75% of the profits gained from the entrepreneurial activity of the micro-entrepreneurship entities added to the list.

In addition, the benefit of the small and medium-sized business cluster is based on a contract with small and medium-sized business cluster company, a small and medium-size business cluster member, for a period of seven years from the date when the small and medium business cluster was included in the registry of small and medium business cluster companies the portion of the profit earned on the goods (works, services) provided for capital expenditures shall be exempt from tax for a period of 7 years.

According to Gudrat Mammadov, Director of Tax Payers Service and Transparent Tax Partnership, individuals will be simplified taxpayers, individuals engaged in catering services, and individual hairdressing and tailoring services. The waiters will pay a monthly fixed tax on simplified tax - 30 manat, hairdressers - 20 manat, and tailors - 10 manat.

In addition, the simplified tax will be calculated at a rate of 2% of taxpayers' income from the submission of goods, works, services, and non-sales revenues.

In the end, Gudrat Mammadov, Director of Tax Payers Service and Transparent Tax Partnership, Department of Territorial Taxes # 11, answered numerous questions of taxpayers and students participating in the awareness-raising event on the amendments to the Tax Code of the Republic of Azerbaijan.