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Who should pay the tax on the apartment rental?
Who should pay the tax on the apartment rental?
Today, the owner of the apartment I want to rent demanded that I pay 14 percent tax. As far as I know, the tax is paid by the landlord, not the tenant. Please provide information about this.
The State Tax Service under the Ministry of Economy stated that, according to Article 124.1 of the Tax Code, if 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 withheld at the source of payment at a rate of 14 percent.
Based on the above, when rent is paid to a resident individual by persons registered as taxpayers, the tax liability on rental income is fulfilled at the source of payment (at a rate of 14 percent).
If the person paying the rent is not registered as a taxpayer, the individual providing the rent must be registered with the tax authority as a taxpayer (receive a TIN) and must calculate tax at a rate of 14 percent on the income earned from this activity, submit an "Income Tax Declaration" to the tax authority no later than March 31 of the year following the reporting year, and pay the income tax calculated during that period to the state budget.
Today, the owner of the apartment I want to rent demanded that I pay 14 percent tax. As far as I know, the tax is paid by the landlord, not the tenant. Please provide information about this.
The State Tax Service under the Ministry of Economy stated that, according to Article 124.1 of the Tax Code, if 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 withheld at the source of payment at a rate of 14 percent.
Based on the above, when rent is paid to a resident individual by persons registered as taxpayers, the tax liability on rental income is fulfilled at the source of payment (at a rate of 14 percent).
If the person paying the rent is not registered as a taxpayer, the individual providing the rent must be registered with the tax authority as a taxpayer (receive a TIN) and must calculate tax at a rate of 14 percent on the income earned from this activity, submit an "Income Tax Declaration" to the tax authority no later than March 31 of the year following the reporting year, and pay the income tax calculated during that period to the state budget.