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Calculation of property tax exemptions for individuals
Calculation of property tax exemptions for individuals
Which area of the apartment should be calculated for property tax: the living area or the total area? It is known that according to Articles 102.1-1 and 102.2 of the Tax Code, the amount of property tax that must be paid by individuals listed, as well as pensioners, soldiers on active military service, and their family members during their military service period, is reduced by 30 manat. Since I am a pensioner, should this exemption apply to me based on the mentioned provision? Does the applied exemption apply to both of my apartments, or only to the apartment I am registered in?
The State Tax Service under the Ministry of Economy has stated that according to Article 197.1.1 of the Tax Code, buildings or parts thereof owned by resident and non-resident individuals and located on the territory of the Republic of Azerbaijan are considered taxable objects for property tax purposes. The relevant rates are applied to the area of such buildings (for residential areas - to the portion exceeding 30 square meters) per square meter (if the building is located in Baku, the rates are applied with a coefficient determined by the executive authority, which is no less than 0.7 and no more than 1.5).
Residential area – is a separate area of real estate considered suitable for citizens' permanent residence, in accordance with the Civil Code of the Republic of Azerbaijan, meeting the established sanitary and technical standards and other legislative requirements. The total area of the residential space includes not only the living area but also the auxiliary areas (excluding balconies or verandas) intended for the satisfaction of citizens' household and other needs, which are part of the total area of that residential space.
According to Article 199.3 of the Tax Code, except in cases where buildings are rented, leased, or used for business or commercial activities, the amount of property tax to be paid by the individuals mentioned in Articles 102.1-1 and 102.2 of the Tax Code, as well as pensioners and military personnel on active service and their families during their military service, is reduced by 30 manat. This exemption is not applied separately for each building. The 30 manat reduction is made from the total amount to be paid.
Pensioners are defined based on the Law on "Labor Pensions," according to which, labor pensions are divided into pensions based on age, disability, and loss of the breadwinner. Since no exceptions are provided for pensioners in Article 199.3 of the Tax Code, the 30 manat exemption applies to all types of labor pensions.
The property tax for buildings owned by individuals in private ownership is calculated by the municipality of the area where the buildings are located. Municipalities must notify taxpayers about the payment of taxes by August 1st at the latest. Property taxes on buildings, water, and air transportation means are paid to the local (municipal) budget.
Which area of the apartment should be calculated for property tax: the living area or the total area? It is known that according to Articles 102.1-1 and 102.2 of the Tax Code, the amount of property tax that must be paid by individuals listed, as well as pensioners, soldiers on active military service, and their family members during their military service period, is reduced by 30 manat. Since I am a pensioner, should this exemption apply to me based on the mentioned provision? Does the applied exemption apply to both of my apartments, or only to the apartment I am registered in?
The State Tax Service under the Ministry of Economy has stated that according to Article 197.1.1 of the Tax Code, buildings or parts thereof owned by resident and non-resident individuals and located on the territory of the Republic of Azerbaijan are considered taxable objects for property tax purposes. The relevant rates are applied to the area of such buildings (for residential areas - to the portion exceeding 30 square meters) per square meter (if the building is located in Baku, the rates are applied with a coefficient determined by the executive authority, which is no less than 0.7 and no more than 1.5).
Residential area – is a separate area of real estate considered suitable for citizens' permanent residence, in accordance with the Civil Code of the Republic of Azerbaijan, meeting the established sanitary and technical standards and other legislative requirements. The total area of the residential space includes not only the living area but also the auxiliary areas (excluding balconies or verandas) intended for the satisfaction of citizens' household and other needs, which are part of the total area of that residential space.
According to Article 199.3 of the Tax Code, except in cases where buildings are rented, leased, or used for business or commercial activities, the amount of property tax to be paid by the individuals mentioned in Articles 102.1-1 and 102.2 of the Tax Code, as well as pensioners and military personnel on active service and their families during their military service, is reduced by 30 manat. This exemption is not applied separately for each building. The 30 manat reduction is made from the total amount to be paid.
Pensioners are defined based on the Law on "Labor Pensions," according to which, labor pensions are divided into pensions based on age, disability, and loss of the breadwinner. Since no exceptions are provided for pensioners in Article 199.3 of the Tax Code, the 30 manat exemption applies to all types of labor pensions.
The property tax for buildings owned by individuals in private ownership is calculated by the municipality of the area where the buildings are located. Municipalities must notify taxpayers about the payment of taxes by August 1st at the latest. Property taxes on buildings, water, and air transportation means are paid to the local (municipal) budget.