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Are individuals with arable land required to report to the tax authority?
Are individuals with arable land required to report to the tax authority?
I have a share of land and I receive social assistance. I myself work as a worker in private farms. They want me to submit a single quarterly report from the tax authority. Does this apply to us? Or is it enough that I pay the tax every month and get a receipt?
The State Tax Service under the Ministry of Economy stated that according to Article 203 of the Tax Code, all land owners or users are subject to land tax in the form of a fixed payment per land area every year, regardless of the results of economic activity. For this, resident and non-resident natural persons, as well as enterprises, after receiving the documents confirming their ownership and use rights for land plots, natural persons and municipal enterprises must register with the municipalities, and other enterprises with the tax authority within 1 month.
We would like to inform you that according to Article 14 of the Law "On Social Insurance", able-bodied individuals (with the exception of those who work in other fields and pay compulsory state social insurance) and family peasant farms who use agricultural lands in their possession are able-bodied (61- Mandatory state social insurance fee for each family member, except for persons with 100 percent disability and persons with disabilities under the age of 18, persons aged 15 to the age limit established by Article 7 of the Law of the Republic of Azerbaijan "On Labor Pensions" depending on the area of the land, the minimum monthly wage is calculated according to the following rates:
- in the case of up to 5 hectares - in the amount of 2 percent;
- from 5 to 10 hectares - in the amount of 6 percent;
- If it is over 10 hectares - in the amount of 10 percent.
The social insurance fee of natural persons who use the agricultural land in their possession is paid when receiving the "Receipt for the payment of a fixed amount for the simplified tax, mandatory state social insurance and mandatory medical insurance fee" and it is not required to submit declarations (reports) on this activity.
For more information about your application, you can contact the Call Center (195-1) or taxpayer service centers.
In addition, it was stated that the activity mentioned in the request (labor service) is considered an entrepreneurial activity. According to Article 33.4 of the Tax Code, a natural person who carries out entrepreneurial activity without creating a legal entity must be registered for tax by submitting an application for tax registration to the tax authority (obtain a TIN) and pay tax from the income to the state budget.
You can be registered for tax by submitting the "Application for registration of a natural person" to the tax authority. Registration is free of charge. Accounting is carried out at ASAN service centers, and in cities and regions where there are no ASAN service centers, at taxpayer service centers.
Tax obligations will consist of appropriate taxes (simplified tax or income tax, VAT) in accordance with the taxation system selected in the application submitted for tax accounting and the resulting taxation objects.
Thus, in the event that the individual chooses the simplified taxation system, the simplified tax is calculated at the rate of 2 percent from the income obtained from the trade activity (from the total output) without deducting the expenses and paid to the state budget.
If the mentioned activity is carried out as a payer of income tax, income tax is calculated at the rate of 20 percent and paid to the state budget from the remaining amount after deducting the expenses incurred in connection with obtaining that income.
According to Article 102.1.30 of the Tax Code, a discount is applied to 75 percent of the income obtained from entrepreneurial activity of individuals who are micro-entrepreneurial subjects with an average number of salaried employees of not less than 3 persons for the relevant year and who do not have debts for mandatory state social insurance fees.
The average monthly number of salaried employees for the relevant year is determined by summing the number of salaried employees during the calendar year and dividing by 12.
In response to the inquiry, it was stated that in the event that the taxpayer ceases to operate, in terms of the application of Article 102.1.30 of the Tax Code, the average monthly number of salaried employees is determined according to the period of actual activity.
If the taxpayer does not meet the conditions defined in this article for the purpose of applying the tax relief, and in the next accounting year, when he switches from a micro-entrepreneurial entity to another category of entrepreneurial entity, he shall be granted a tax relief in the amount of 75 percent of the income tax calculated and paid according to the results of the previous 3 calendar years in which the legal entity was a micro-entrepreneur. is deducted from the income tax liability in the periods when it is a subject.
In the case of non-commodity transactions by the taxpayer, the tax relief specified by this article shall not be applied to income from non-commodity transactions.
To get more detailed information about accounting procedures in tax authorities, the actions you should take depending on the characteristics of your activity, read the information posted in the "Tax guide" section on the official website of the State Tax Service, and if you have additional questions, contact the Call Center (195-1) or taxpayer service centers you can apply.
Main: Articles 16, 97, 101, 102 and 220 of the Tax Code.
Main: Articles 16, 33, 97, 101, 102 of the Tax Code, approved by the decision of the Board of the Ministry of Taxes of the Republic of Azerbaijan No. 1917050000006200 "Registration of natural persons, re Registration and deregistration Rules" and Law No. 250-IQ of the Republic of Azerbaijan "On Social Insurance".
I have a share of land and I receive social assistance. I myself work as a worker in private farms. They want me to submit a single quarterly report from the tax authority. Does this apply to us? Or is it enough that I pay the tax every month and get a receipt?
The State Tax Service under the Ministry of Economy stated that according to Article 203 of the Tax Code, all land owners or users are subject to land tax in the form of a fixed payment per land area every year, regardless of the results of economic activity. For this, resident and non-resident natural persons, as well as enterprises, after receiving the documents confirming their ownership and use rights for land plots, natural persons and municipal enterprises must register with the municipalities, and other enterprises with the tax authority within 1 month.
We would like to inform you that according to Article 14 of the Law "On Social Insurance", able-bodied individuals (with the exception of those who work in other fields and pay compulsory state social insurance) and family peasant farms who use agricultural lands in their possession are able-bodied (61- Mandatory state social insurance fee for each family member, except for persons with 100 percent disability and persons with disabilities under the age of 18, persons aged 15 to the age limit established by Article 7 of the Law of the Republic of Azerbaijan "On Labor Pensions" depending on the area of the land, the minimum monthly wage is calculated according to the following rates:
- in the case of up to 5 hectares - in the amount of 2 percent;
- from 5 to 10 hectares - in the amount of 6 percent;
- If it is over 10 hectares - in the amount of 10 percent.
The social insurance fee of natural persons who use the agricultural land in their possession is paid when receiving the "Receipt for the payment of a fixed amount for the simplified tax, mandatory state social insurance and mandatory medical insurance fee" and it is not required to submit declarations (reports) on this activity.
For more information about your application, you can contact the Call Center (195-1) or taxpayer service centers.
In addition, it was stated that the activity mentioned in the request (labor service) is considered an entrepreneurial activity. According to Article 33.4 of the Tax Code, a natural person who carries out entrepreneurial activity without creating a legal entity must be registered for tax by submitting an application for tax registration to the tax authority (obtain a TIN) and pay tax from the income to the state budget.
You can be registered for tax by submitting the "Application for registration of a natural person" to the tax authority. Registration is free of charge. Accounting is carried out at ASAN service centers, and in cities and regions where there are no ASAN service centers, at taxpayer service centers.
Tax obligations will consist of appropriate taxes (simplified tax or income tax, VAT) in accordance with the taxation system selected in the application submitted for tax accounting and the resulting taxation objects.
Thus, in the event that the individual chooses the simplified taxation system, the simplified tax is calculated at the rate of 2 percent from the income obtained from the trade activity (from the total output) without deducting the expenses and paid to the state budget.
If the mentioned activity is carried out as a payer of income tax, income tax is calculated at the rate of 20 percent and paid to the state budget from the remaining amount after deducting the expenses incurred in connection with obtaining that income.
According to Article 102.1.30 of the Tax Code, a discount is applied to 75 percent of the income obtained from entrepreneurial activity of individuals who are micro-entrepreneurial subjects with an average number of salaried employees of not less than 3 persons for the relevant year and who do not have debts for mandatory state social insurance fees.
The average monthly number of salaried employees for the relevant year is determined by summing the number of salaried employees during the calendar year and dividing by 12.
In response to the inquiry, it was stated that in the event that the taxpayer ceases to operate, in terms of the application of Article 102.1.30 of the Tax Code, the average monthly number of salaried employees is determined according to the period of actual activity.
If the taxpayer does not meet the conditions defined in this article for the purpose of applying the tax relief, and in the next accounting year, when he switches from a micro-entrepreneurial entity to another category of entrepreneurial entity, he shall be granted a tax relief in the amount of 75 percent of the income tax calculated and paid according to the results of the previous 3 calendar years in which the legal entity was a micro-entrepreneur. is deducted from the income tax liability in the periods when it is a subject.
In the case of non-commodity transactions by the taxpayer, the tax relief specified by this article shall not be applied to income from non-commodity transactions.
To get more detailed information about accounting procedures in tax authorities, the actions you should take depending on the characteristics of your activity, read the information posted in the "Tax guide" section on the official website of the State Tax Service, and if you have additional questions, contact the Call Center (195-1) or taxpayer service centers you can apply.
Main: Articles 16, 97, 101, 102 and 220 of the Tax Code.
Main: Articles 16, 33, 97, 101, 102 of the Tax Code, approved by the decision of the Board of the Ministry of Taxes of the Republic of Azerbaijan No. 1917050000006200 "Registration of natural persons, re Registration and deregistration Rules" and Law No. 250-IQ of the Republic of Azerbaijan "On Social Insurance".