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Who should pay the tax for renting an apartment?
Who should pay the tax for renting an apartment?
Today, the owner of the apartment I want to rent asked me to pay 14 percent tax. As far as I know, the landlord pays the tax, not the tenant. Please let me know about it.
The State Tax Service under the Ministry of Economy stated that according to Article 124.1 of the Tax Code, if the income from rent for movable and immovable property is obtained from an Azerbaijani source in accordance with Article 13.2.16 of this Code, tax is charged at the source of payment at the rate of 14 percent.
Based on the above, when rent is paid to a resident individual by persons registered as a taxpayer, the tax liability on rental income is fulfilled by the lessee at the source of payment (at a rate of 14 percent).
If the person paying the rent is not registered as a tax payer, the natural person giving the rent must be registered with the tax authority as a tax payer (receive a VAT number) and calculate the tax at the rate of 14 percent from the income obtained from this activity, no later than March 31 of the year following the reporting year. He must pay the income tax calculated during that period to the state budget by submitting the "Income Tax Declaration" to the tax authority.
Today, the owner of the apartment I want to rent asked me to pay 14 percent tax. As far as I know, the landlord pays the tax, not the tenant. Please let me know about it.
The State Tax Service under the Ministry of Economy stated that according to Article 124.1 of the Tax Code, if the income from rent for movable and immovable property is obtained from an Azerbaijani source in accordance with Article 13.2.16 of this Code, tax is charged at the source of payment at the rate of 14 percent.
Based on the above, when rent is paid to a resident individual by persons registered as a taxpayer, the tax liability on rental income is fulfilled by the lessee at the source of payment (at a rate of 14 percent).
If the person paying the rent is not registered as a tax payer, the natural person giving the rent must be registered with the tax authority as a tax payer (receive a VAT number) and calculate the tax at the rate of 14 percent from the income obtained from this activity, no later than March 31 of the year following the reporting year. He must pay the income tax calculated during that period to the state budget by submitting the "Income Tax Declaration" to the tax authority.