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Taxation of rental service abroad
Taxation of rental service abroad
Are rental services provided by a non-resident taxpayer in foreign countries payable to a resident taxpayer?
The Ministry of Economy and the State Tax Service stated that according to Article 125.1 of the Tax Council, the non-resident's income from Azerbaijan is determined as follows: Taxes are deducted from the total income of residents and non-residents. those who do not belong to the permanent population of the Republic of Azerbaijan without deducting taxes from the source of payment.
When we say income from Azerbaijan, the income mentioned in Article 13.2.16 of the Tax Council is taken into account.
It can be noted that in accordance with Article 13.2.16.12 of the Tax Council, income from real estate in the Republic of Azerbaijan is considered income from the transfer of shares in this property.
According to Article 169.1 of the Tax Code, if a non-resident who is not registered for the purposes of VAT provides services or works for a tax agent mentioned in Articles 169.2 or 169.5 of this Code in the territory of the Republic of Azerbaijan (including Azerbaijan in the electronic trade order Performance of works and provision of services, except services for ordering hotel services and air tickets outside the borders of the Republic), performance of works or provision of services for the purposes of this chapter shall be taxed in accordance with this article.
In addition, it was stated that in order to express an accurate attitude to the issues raised in the application, it is recommended to apply to the tax authority where the taxpayer is registered with the actual circumstances of the transaction and relevant supporting documents.
Are rental services provided by a non-resident taxpayer in foreign countries payable to a resident taxpayer?
The Ministry of Economy and the State Tax Service stated that according to Article 125.1 of the Tax Council, the non-resident's income from Azerbaijan is determined as follows: Taxes are deducted from the total income of residents and non-residents. those who do not belong to the permanent population of the Republic of Azerbaijan without deducting taxes from the source of payment.
When we say income from Azerbaijan, the income mentioned in Article 13.2.16 of the Tax Council is taken into account.
It can be noted that in accordance with Article 13.2.16.12 of the Tax Council, income from real estate in the Republic of Azerbaijan is considered income from the transfer of shares in this property.
According to Article 169.1 of the Tax Code, if a non-resident who is not registered for the purposes of VAT provides services or works for a tax agent mentioned in Articles 169.2 or 169.5 of this Code in the territory of the Republic of Azerbaijan (including Azerbaijan in the electronic trade order Performance of works and provision of services, except services for ordering hotel services and air tickets outside the borders of the Republic), performance of works or provision of services for the purposes of this chapter shall be taxed in accordance with this article.
In addition, it was stated that in order to express an accurate attitude to the issues raised in the application, it is recommended to apply to the tax authority where the taxpayer is registered with the actual circumstances of the transaction and relevant supporting documents.