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Calculation of property tax relief for natural persons
Calculation of property tax relief for natural persons
Which area of the apartment should be calculated for property tax: living area or total area? It is known that the amount of property tax that the persons specified in Articles 102.1-1 and 102.2 of the Tax Code, as well as pensioners and conscripts and their family members must pay for buildings during the period of conscript military service, is reduced by 30 manats. As I am a pensioner, should I be exempted under the mentioned clause? Does the applied discount apply to both apartments that I own or only to the apartment that I am registered with?
The State Tax Service under the Ministry of Economy stated that according to Article 197.1.1 of the Tax Code, buildings or their parts that are privately owned by resident and non-resident natural persons and located in the territory of the Republic of Azerbaijan are subject to taxation for property tax purposes. Appropriate rates are applied for each square meter of the area of such buildings and buildings in private ownership (in relation to residential areas - the part exceeding 30 square meters) (if the building is located in Baku, those rates are lower than 0.7 and 1.5- by applying coefficients not higher than).
Residential area - is a separate area that is considered real estate in accordance with the Civil Code of the Republic of Azerbaijan and is suitable for permanent residence of citizens (meeting the established sanitary and technical norms and rules, other requirements of the legislation). The total area of the residential area consists of the sum of the area of all parts of the residential area, including the area of auxiliary areas (except for balconies or balconies) intended to meet the household and other needs of citizens due to their living in the residential area.
According to Article 199.3 of the Tax Code, with the exception of cases where buildings are leased, rented, as well as used to engage in entrepreneurial or commercial activities, persons specified in Articles 102.1-1 and 102.2 of the Tax Code, as well as pensioners and term-time military personnel the amount of property tax that servicemen and their family members have to pay for buildings during the term of military service is reduced by 30 manats. The mentioned discount is not applied separately for each building. 30 manats are deducted from the total payable amount.
When we say pensioners, it is possible to determine who is meant based on the Law "On Labor Pensions". According to Article 4 of that Law, labor pensions are divided according to age, disability and loss of the head of the family. Since Article 199.3 of the Tax Code does not provide any exception for pensioners, the right to a discount of 30 manats applies to all types of labor pensions.
Property tax for buildings privately owned by individuals is calculated by the municipality of the area where they are located. Municipalities must give tax payment notice to taxpayers no later than August 1. The property tax of individuals for buildings, water and air vehicles is paid to the local (municipal) budget.
Which area of the apartment should be calculated for property tax: living area or total area? It is known that the amount of property tax that the persons specified in Articles 102.1-1 and 102.2 of the Tax Code, as well as pensioners and conscripts and their family members must pay for buildings during the period of conscript military service, is reduced by 30 manats. As I am a pensioner, should I be exempted under the mentioned clause? Does the applied discount apply to both apartments that I own or only to the apartment that I am registered with?
The State Tax Service under the Ministry of Economy stated that according to Article 197.1.1 of the Tax Code, buildings or their parts that are privately owned by resident and non-resident natural persons and located in the territory of the Republic of Azerbaijan are subject to taxation for property tax purposes. Appropriate rates are applied for each square meter of the area of such buildings and buildings in private ownership (in relation to residential areas - the part exceeding 30 square meters) (if the building is located in Baku, those rates are lower than 0.7 and 1.5- by applying coefficients not higher than).
Residential area - is a separate area that is considered real estate in accordance with the Civil Code of the Republic of Azerbaijan and is suitable for permanent residence of citizens (meeting the established sanitary and technical norms and rules, other requirements of the legislation). The total area of the residential area consists of the sum of the area of all parts of the residential area, including the area of auxiliary areas (except for balconies or balconies) intended to meet the household and other needs of citizens due to their living in the residential area.
According to Article 199.3 of the Tax Code, with the exception of cases where buildings are leased, rented, as well as used to engage in entrepreneurial or commercial activities, persons specified in Articles 102.1-1 and 102.2 of the Tax Code, as well as pensioners and term-time military personnel the amount of property tax that servicemen and their family members have to pay for buildings during the term of military service is reduced by 30 manats. The mentioned discount is not applied separately for each building. 30 manats are deducted from the total payable amount.
When we say pensioners, it is possible to determine who is meant based on the Law "On Labor Pensions". According to Article 4 of that Law, labor pensions are divided according to age, disability and loss of the head of the family. Since Article 199.3 of the Tax Code does not provide any exception for pensioners, the right to a discount of 30 manats applies to all types of labor pensions.
Property tax for buildings privately owned by individuals is calculated by the municipality of the area where they are located. Municipalities must give tax payment notice to taxpayers no later than August 1. The property tax of individuals for buildings, water and air vehicles is paid to the local (municipal) budget.