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 (âAmendment Lawâ).
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 âon mortgageâ 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