Tax code

Azerbaijan amends tax code to ensure transparent regulations

January 12, 2022 11:35 am (UTC + 04:00 am)

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Through Tendency

Amendments have been made to Azerbaijan’s Tax Code to strengthen tax control and ensure transparency in the conduct of settlements, said the State Tax Service (STS) under the Ministry of Economy. Tendency.

The changes plan to boost business activities, broaden the tax base, reduce the financial and fiscal burden through social payments, as well as improve accounting, tax and control mechanisms.

“One of the important modifications of the Tax Code is due to the fact that from January 1 of this year, during a payment transaction between taxpayers, a payment order submitted to a bank or to other persons performing banking transactions must contain information on details for the purpose of payment, “said STS.” Thus, taxpayers are required to provide information on specific details of payment orders for the transfer of goods, works and services received, as well as debts and prepayments received by taxpayers. In the event of non-compliance with these obligations, the General Tax Code provides for penalties.

Thus, depending on the service, taxpayers must provide information containing the number of the electronic invoice to which the payment belongs, the series and number of the customs cargo declaration (CCD) or an abbreviated import declaration on the foreign economic activity, the date and number of the invoice for the purchase of services.

In addition, the information must contain the deposit or the date and number of the agreement or annex to the agreement between the parties, the date and number of the loan agreement concluded between the parties, or the date and debt repayment request number.

“A taxpayer who does not indicate or misrepresent the above information in a payment order is liable to a financial penalty in the amount of 100 manat ($ 58.8) for each payment order”, added the STS. “In practice, when settling between business entities, many disputes over tax control measures arise. In this regard, changes in legislation reflect information on specific details in the appointment of payment orders in order to improve regulations, strengthen tax control in this area and ensure the transparency of transactions.

“These changes will increase the discipline of payment in settlements between taxpayers and eliminate disputes during tax control measures,” added the National Tax Service.

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