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trNew tax incentives on VAT and corporate income tax are proposed for freight carriers
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New tax incentives on VAT and corporate income tax are proposed for freight carriers
One of the expected amendments to the Tax Code will concern the taxation of legal entities and individuals engaged in domestic freight transportation. Under the proposed changes, freight carriers will be able to choose an alternative tax regime in addition to the existing value-added tax (VAT) and corporate income tax systems.
AZE Finance reports that this was announced by Avez Guliyev, Deputy Head of the Main Department of Tax Policy of the State Tax Service under the Ministry of Economy, in an interview with ATV's “İqtisadi zona” programme.
According to him, a new tax option will be introduced for freight carriers:
“As is known, the tax regime for domestic freight transportation has been regulated since 2024. Individuals operating in this sector can now, instead of the fixed payment system, calculate their tax based on the difference between income and expenses, paying personal income tax or corporate income tax, or, depending on their choice, apply the simplified tax method based on turnover.”
Further changes to the taxation of this sector are expected from next year:
“Starting next year, the introduction of an alternative tax regime for freight carriers is being proposed. In addition to traditional taxation methods, namely personal income tax, corporate income tax or the simplified tax regime, individual carriers and businesses with an annual turnover exceeding AZN 200,000 will also be able to choose a simplified tax regime at a rate of 8% of turnover.
Under this regime, entrepreneurs will pay tax at a rate of 8% on their turnover and will not bear the VAT and corporate income tax burden. In other words, the legislation will provide them with an alternative taxation regime, allowing businesses to choose one of the available options based on their preferences and financial and economic calculations”, he noted.
One of the expected amendments to the Tax Code will concern the taxation of legal entities and individuals engaged in domestic freight transportation. Under the proposed changes, freight carriers will be able to choose an alternative tax regime in addition to the existing value-added tax (VAT) and corporate income tax systems.
AZE Finance reports that this was announced by Avez Guliyev, Deputy Head of the Main Department of Tax Policy of the State Tax Service under the Ministry of Economy, in an interview with ATV's “İqtisadi zona” programme.
According to him, a new tax option will be introduced for freight carriers:
“As is known, the tax regime for domestic freight transportation has been regulated since 2024. Individuals operating in this sector can now, instead of the fixed payment system, calculate their tax based on the difference between income and expenses, paying personal income tax or corporate income tax, or, depending on their choice, apply the simplified tax method based on turnover.”
Further changes to the taxation of this sector are expected from next year:
“Starting next year, the introduction of an alternative tax regime for freight carriers is being proposed. In addition to traditional taxation methods, namely personal income tax, corporate income tax or the simplified tax regime, individual carriers and businesses with an annual turnover exceeding AZN 200,000 will also be able to choose a simplified tax regime at a rate of 8% of turnover.
Under this regime, entrepreneurs will pay tax at a rate of 8% on their turnover and will not bear the VAT and corporate income tax burden. In other words, the legislation will provide them with an alternative taxation regime, allowing businesses to choose one of the available options based on their preferences and financial and economic calculations”, he noted.