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The importance of timely filing of tax returns
The importance of timely filing of tax returns
It is the duty of everyone to pay taxes and other state payments established by law in full and on time. This point, mentioned in the Constitution of the Republic of Azerbaijan, draws attention to the importance of paying taxes. Because the taxes we pay directly affect the growth of the state budget, economic development and the improvement of our social welfare. The reforms carried out in the tax system of Azerbaijan have formed a favorable tax administration for taxpayers by harmonizing the practices applied in the world's advanced tax systems with the local business environment. The global ratings demonstrating the continuous growth in the number of taxpayers, the dynamics of tax revenues and the increase in international trust in the local tax system are indicators characterizing the development of tax administration. Various services and tools are put into use to ensure transparency, accountability and flexibility in the local tax system. In this regard, the most optimal methods of taxation are applied in our country.
Forms of taxation in our country
According to the Tax Code, taxation is carried out in 3 forms. The direct source taxation method involves withholding tax before income or profit is earned, the declaration method involves withholding tax after income or profit is earned, and the notification method involves paying tax by the taxpayer based on the payment notification submitted by the tax authority or municipality for the amount calculated based on the value and area of the taxable object. In Azerbaijan, the majority of taxpayers use the tax return submission method among the forms of taxation when fulfilling their obligations. The procedure for compiling and submitting a tax report is regulated by the Tax Code. It reflects the deadlines and other rules related to the submission of declarations. Taxpayers must make the final calculation and pay the tax by the specified time for submitting the declaration. Otherwise, they may be subject to fines and sanctions established by law.
In our country, it is also possible to submit tax declarations in electronic form. In accordance with the development priorities in order to adapt the tax system to the requirements of taxpayers, simplification and optimization of some declarations are also being carried out. In this direction, relevant work has been carried out to improve the “Single Declaration on Withholding Taxes Related to Wage Work” and a simplified single declaration form has been developed. This, in addition to reducing the administrative burden of taxpayers, allows micro and small business entities to conveniently submit the declaration without contacting service centers. Currently, the possibilities of applying the pre-filling system for other declarations are being explored. All this serves to create favorable operating opportunities for tax authorities. In other words, the tax authority acts as a partner by creating favorable conditions for taxpayers to fulfill their obligations.
Being a disciplined taxpayer is the social responsibility of business
Reforms that facilitate the work of taxpayers form an environment of mutual trust in the business environment. In this favorable ecosystem where tax services are expanding, taxpayers also have their own obligations. This obligation is to support activities within the framework of the law and ensure accountability. Timely submission of tax returns is of equal importance for tax authorities and taxpayers. While timely filing of tax returns is a legal requirement, it is also a social responsibility. This process is an indicator of taxpayer compliance with the law, contributing to transparency, and actively participating in ensuring accountability. Fulfilling this obligation increases disciplined habits in the business environment. Complying with the law and submitting tax returns on time and correctly demonstrates that the business is responsible. This increases the reputation of the business with potential customers, partners, and regulatory authorities. At the same time, it strengthens trust and relationships with stakeholders by reflecting transparency in financial transactions.
It is the duty of everyone to pay taxes and other state payments established by law in full and on time. This point, mentioned in the Constitution of the Republic of Azerbaijan, draws attention to the importance of paying taxes. Because the taxes we pay directly affect the growth of the state budget, economic development and the improvement of our social welfare. The reforms carried out in the tax system of Azerbaijan have formed a favorable tax administration for taxpayers by harmonizing the practices applied in the world's advanced tax systems with the local business environment. The global ratings demonstrating the continuous growth in the number of taxpayers, the dynamics of tax revenues and the increase in international trust in the local tax system are indicators characterizing the development of tax administration. Various services and tools are put into use to ensure transparency, accountability and flexibility in the local tax system. In this regard, the most optimal methods of taxation are applied in our country.
Forms of taxation in our country
According to the Tax Code, taxation is carried out in 3 forms. The direct source taxation method involves withholding tax before income or profit is earned, the declaration method involves withholding tax after income or profit is earned, and the notification method involves paying tax by the taxpayer based on the payment notification submitted by the tax authority or municipality for the amount calculated based on the value and area of the taxable object. In Azerbaijan, the majority of taxpayers use the tax return submission method among the forms of taxation when fulfilling their obligations. The procedure for compiling and submitting a tax report is regulated by the Tax Code. It reflects the deadlines and other rules related to the submission of declarations. Taxpayers must make the final calculation and pay the tax by the specified time for submitting the declaration. Otherwise, they may be subject to fines and sanctions established by law.
In our country, it is also possible to submit tax declarations in electronic form. In accordance with the development priorities in order to adapt the tax system to the requirements of taxpayers, simplification and optimization of some declarations are also being carried out. In this direction, relevant work has been carried out to improve the “Single Declaration on Withholding Taxes Related to Wage Work” and a simplified single declaration form has been developed. This, in addition to reducing the administrative burden of taxpayers, allows micro and small business entities to conveniently submit the declaration without contacting service centers. Currently, the possibilities of applying the pre-filling system for other declarations are being explored. All this serves to create favorable operating opportunities for tax authorities. In other words, the tax authority acts as a partner by creating favorable conditions for taxpayers to fulfill their obligations.
Being a disciplined taxpayer is the social responsibility of business
Reforms that facilitate the work of taxpayers form an environment of mutual trust in the business environment. In this favorable ecosystem where tax services are expanding, taxpayers also have their own obligations. This obligation is to support activities within the framework of the law and ensure accountability. Timely submission of tax returns is of equal importance for tax authorities and taxpayers. While timely filing of tax returns is a legal requirement, it is also a social responsibility. This process is an indicator of taxpayer compliance with the law, contributing to transparency, and actively participating in ensuring accountability. Fulfilling this obligation increases disciplined habits in the business environment. Complying with the law and submitting tax returns on time and correctly demonstrates that the business is responsible. This increases the reputation of the business with potential customers, partners, and regulatory authorities. At the same time, it strengthens trust and relationships with stakeholders by reflecting transparency in financial transactions.