04.01.2019 / 16:51
According to the amendments to the Tax Code, startups that are micro or small businesses in Azerbaijan and operate as a legal entity are exempt from tax for 3 years from the date of receipt of the certificate "Startup".
In addition, an entity designated by the relevant executive authority of not more than 10% of the taxpayer's profit for the reporting year, except for legal entities in which 51% or more of the shares (shares) are directly and indirectly owned by the state and public legal entities established on behalf of the state The part is transferred to enterprises, departments and organizations operating in the field of education, health, sports and culture that meet the criteria set by the organization determined by executive power. It should be noted that the provisions of this article apply only to non-cash expenses.
According to the amendment to the Code, 50% of the taxpayer's share or income from the provision of shares for at least 3 years, 75% of the profits from the entrepreneurial activities of legal entities that are micro-enterprises are added to the list of tax exemptions.
In addition, the profit of a SME cluster company is the capital expenditure of goods (works, services) provided by a legal entity participating in a SME cluster under a contract with a SME cluster company for a period of 7 years from the date of inclusion of the SME cluster in the register of SME cluster companies. The part intended for withdrawal will be exempt from tax for a period of 7 years.
The amount of profit (income) tax payable to the budget by legal entities engaged in trade and (or) catering activities for the sale of goods at retail for a period of 1 to 3 years from January 1, 2019 "On protection of consumer rights" "Non-cash payments through POS-terminals established by the Law of the Republic of Azerbaijan are reduced by 25 percent of the tax determined in accordance with the share of total income. When determining the right to receive this discount, the amount of payments made by persons registered with the tax authority through the POS-terminal is not taken into account.
Dividend income of legal entities that are founders (shareholders) or shareholders of a resident enterprise that keeps records of income and expenses in accordance with the law, are not registered for VAT purposes and the volume of transactions in any month (months) of a consecutive 12-month period is exempt from income tax.
According to another innovation, no more than 10% of the taxpayer's profit for the reporting year is transferred to enterprises, departments and organizations operating in the field of education, health, sports and culture that meet the criteria set by the relevant executive authority. is exempt from income tax for a period of 10 years from January 1, 2006. The provisions of this article shall apply only to non-cash expenses and this exemption shall not apply to legal entities in which 51% or more of the shares (stocks) belong directly or indirectly to the state and to public legal entities established on behalf of the state.
