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VAT refunds have started in this sector
VAT refunds have started in this sector
"Based on the changes made to the Tax Code, the application of new tax exemptions has begun in the cultural sector. The goal of these new changes is to stimulate the development of this sector by attracting more investments. At the same time, these changes may lead to a reduction in the cost of certain services in the cultural sector and a decrease in prices.
The income of several micro-entrepreneurs is exempt from taxes up to 75%, without the requirement for 3 employees.
Economist Vüqar Bayramov stated that VAT refunds have already begun in the cultural sector starting this month.
"Specifically, 50% of the VAT paid for services related to theater performances, film screenings, museum visits, and symphonic orchestra concerts (paid by non-cash methods) is refunded as part of the ‘VAT cashback’ program. In other words, cashback is now also applied to cultural services.
Another change is that, starting this month, cultural sector entities will receive a full exemption from land tax for 5 years and a 90% reduction in profit (income) tax. Furthermore, the size of the profit (income) tax exemption has increased from 75% to 90%. According to the current legislation, the number of subjects eligible for these exemptions has increased from 1 to 5. The list of those benefiting from the exemptions now includes theaters, museums, symphonic orchestras, and film producers."
"Based on the changes made to the Tax Code, the application of new tax exemptions has begun in the cultural sector. The goal of these new changes is to stimulate the development of this sector by attracting more investments. At the same time, these changes may lead to a reduction in the cost of certain services in the cultural sector and a decrease in prices.
The income of several micro-entrepreneurs is exempt from taxes up to 75%, without the requirement for 3 employees.
Economist Vüqar Bayramov stated that VAT refunds have already begun in the cultural sector starting this month.
"Specifically, 50% of the VAT paid for services related to theater performances, film screenings, museum visits, and symphonic orchestra concerts (paid by non-cash methods) is refunded as part of the ‘VAT cashback’ program. In other words, cashback is now also applied to cultural services.
Another change is that, starting this month, cultural sector entities will receive a full exemption from land tax for 5 years and a 90% reduction in profit (income) tax. Furthermore, the size of the profit (income) tax exemption has increased from 75% to 90%. According to the current legislation, the number of subjects eligible for these exemptions has increased from 1 to 5. The list of those benefiting from the exemptions now includes theaters, museums, symphonic orchestras, and film producers."