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How is the tax base determined for simplified taxpayers?
How is the tax base determined for simplified taxpayers?
In order to develop the work of accountants in our country, improvements are being made in the Professional Accountant Certificate (PMS) exams. Tax experts explain the essence of the questions asked in this regard.
In the table presented in the question about simplified tax, the answers required from the participants are related to "object of taxation", "taxation base" and "amount of simplified tax".
The object of taxation and the taxation base are defined by Article 12 of the Tax Code, being the main elements of taxation. In short, the object of taxation is the source of the tax, and the tax base is the quantitative expression of the taxable part of the object of taxation.
Example: Transactions of a simplified taxpayer in the 1st quarter are as follows:
25,000 manats for the presentation of goods;
Income on bonds - 800 manats;
Income from forgiveness of tax debt to the state budget - 500 manats.
2,000 manats of the value of the provided goods were not paid during the reporting period.
Here, it is required to find the object of taxation, the tax base and the simplified tax amount.
First of all, let's define the object of taxation. According to Article 219.1 of the Tax Code, the object of taxation for simplified taxpayers is the general production and non-sale income from the provision of goods (works and services), property (except for those that are taxed at the source of payment).
In our example, although the value of the goods presented is 25,000 manats, since 2,000 manats were not paid for the reporting period, the revenue is accepted as 23,000 manats:
25000 - 2000 = 23000 manats.
Income from bonds (800 AZN) and tax debt forgiveness from the state budget (500 AZN) is considered as an object of taxation as income other than sales. Thus, the funds subject to taxation are 24,300 manats in total:
23000 + 800 + 500 = 24300 manats.
And since the tax base is the taxable part of the tax object, we must deduct any type of income that is exempt from the tax object. According to Article 218-1 of the Tax Code, in our example, the income from the remission of tax debt to the state budget (500 manats) is exempted from tax.
Tax base: 24300 – 500 = 23800 manats.
The rate of the simplified tax is 2%.
Amount of simplified tax: 23800 x 2% = 476 manats.
In order to develop the work of accountants in our country, improvements are being made in the Professional Accountant Certificate (PMS) exams. Tax experts explain the essence of the questions asked in this regard.
In the table presented in the question about simplified tax, the answers required from the participants are related to "object of taxation", "taxation base" and "amount of simplified tax".
The object of taxation and the taxation base are defined by Article 12 of the Tax Code, being the main elements of taxation. In short, the object of taxation is the source of the tax, and the tax base is the quantitative expression of the taxable part of the object of taxation.
Example: Transactions of a simplified taxpayer in the 1st quarter are as follows:
25,000 manats for the presentation of goods;
Income on bonds - 800 manats;
Income from forgiveness of tax debt to the state budget - 500 manats.
2,000 manats of the value of the provided goods were not paid during the reporting period.
Here, it is required to find the object of taxation, the tax base and the simplified tax amount.
First of all, let's define the object of taxation. According to Article 219.1 of the Tax Code, the object of taxation for simplified taxpayers is the general production and non-sale income from the provision of goods (works and services), property (except for those that are taxed at the source of payment).
In our example, although the value of the goods presented is 25,000 manats, since 2,000 manats were not paid for the reporting period, the revenue is accepted as 23,000 manats:
25000 - 2000 = 23000 manats.
Income from bonds (800 AZN) and tax debt forgiveness from the state budget (500 AZN) is considered as an object of taxation as income other than sales. Thus, the funds subject to taxation are 24,300 manats in total:
23000 + 800 + 500 = 24300 manats.
And since the tax base is the taxable part of the tax object, we must deduct any type of income that is exempt from the tax object. According to Article 218-1 of the Tax Code, in our example, the income from the remission of tax debt to the state budget (500 manats) is exempted from tax.
Tax base: 24300 – 500 = 23800 manats.
The rate of the simplified tax is 2%.
Amount of simplified tax: 23800 x 2% = 476 manats.