Tax code

Amendments to the Azerbaijan Tax Code – Taxation


Azerbaijan: Amendments to the Azerbaijan tax code

To print this article, simply register or connect to Mondaq.com.

On June 21, 2021, an amendment was made to the Azerbaijani Tax Code (“Amendment Law”).

Under the amending law, auction organizers are required to withhold a simplified tax on the mortgagee when the mortgagee receives the property from a natural person (who is not registered with the tax authorities), which serves as collateral for a loan facility. If, however, the property of an individual entrepreneur (registered with the tax authorities) serves as collateral for a loan facility, then the individual entrepreneur is obliged to calculate the simplified tax and pay it to the budget of the ‘State when collateral is received by mortgagee. In other words, the organizers of auctions are exempt from the obligation to calculate taxes and pay them to the state budget when the mortgagor is a private taxpayer.

In addition, the provision of real estate given as collateral for the benefit of a bank or other credit institution and transferred to a bank or other credit institution by auction, as well as the provision of real estate acquired in accordance with Article 43 of the Law of the Republic of Azerbaijan “on mortgage” are not considered transactions subject to VAT up to the value of the amount of the principal outstanding debt.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

POPULAR POSTS ON: Azerbaijan Tax

UK tax rally

Proskauer Rose LLP

Welcome to the November edition of the UK Tax Round Up. This month saw the publication of the 2021-22 finance bill (which will become the 2022 finance law) including a bill for the reform of the base period …

Property tax update – December 2021

Hillier Hopkins

As the holiday season approaches, there are a few important updates you need to know ahead of the New Year. As always, we’re here to help if you need it.

Rules are rules: input VAT requirements

Berg kaprow lewis

Mpala Mufwankolo ran a pub in Tottenham, renting the property from an owner who chose to tax it. HMRC refused to authorize the collection of the relevant input tax and, in [2021] UKFTT 388 (TC), the court of first instance agreed with HMRC. Why is that ?