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Financial Sanctions for Market Owners and Tenants - Terms and Amounts
Financial Sanctions for Market Owners and Tenants - Terms and Amounts
The topic is explained by expert Khayal Feyzullayev. One of the most important changes in the Tax Code that came into effect in 2025 concerns the regulation of market activities. In this regard, new articles 16.1.11-15, 16.1.11-16, and 16.1.11-17 have been added to the Tax Code. According to these articles, market owners or the managers of markets (except for agricultural product markets and agricultural cooperative markets) must adhere to the following rules:
- Create conditions for the lessees to operate in the leased property (the object) after the property is registered with the tax authorities.
Based on this article, market owners (or managers) should not allow lessees to operate on the leased properties until the lessees have registered the property with the tax authorities. If market owners (or managers) fail to comply with this rule, financial sanctions may be applied in accordance with Article 58.15-2 of the Tax Code, which came into effect in 2025. If this violation is detected for the first time during the calendar year, a fine of 2,000 manats will be imposed; for the second time, the fine will be 4,000 manats; and for three or more times, the fine will be 6,000 manats.
For reference, Article 58.15-2 of the Tax Code will come into effect nine months after the adoption of the Law of the Republic of Azerbaijan on December 16, 2024, "On Amendments to the Tax Code of the Republic of Azerbaijan."
- Submit information to the tax authorities about taxpayers who have terminated their lease agreements and are no longer operating at the leased property, as well as those who continue to operate (a special form will be approved for this purpose) by the 20th of the following month after the end of each quarter.
Additionally, failure to submit this information to the tax authorities in a timely manner will result in a financial sanction of 1,000 manats for market owners (or managers) under Article 57.3 of the Tax Code.
Furthermore, market owners (or managers), as well as lessees who use the property for business purposes, must display information (a certificate) about the registration of the property with the tax authorities (indicating the taxpayer's name and TIN) at the entrance of the property.
At the same time, under the amendment to Article 58.2-1 of the Tax Code, a financial sanction of 40 manats will be applied to micro-enterprises, non-commercial organizations, and individuals engaged in non-commercial activities if they fail to display this information (certificate). For other individuals, the fine will be 400 manats.
The topic is explained by expert Khayal Feyzullayev. One of the most important changes in the Tax Code that came into effect in 2025 concerns the regulation of market activities. In this regard, new articles 16.1.11-15, 16.1.11-16, and 16.1.11-17 have been added to the Tax Code. According to these articles, market owners or the managers of markets (except for agricultural product markets and agricultural cooperative markets) must adhere to the following rules:
- Create conditions for the lessees to operate in the leased property (the object) after the property is registered with the tax authorities.
Based on this article, market owners (or managers) should not allow lessees to operate on the leased properties until the lessees have registered the property with the tax authorities. If market owners (or managers) fail to comply with this rule, financial sanctions may be applied in accordance with Article 58.15-2 of the Tax Code, which came into effect in 2025. If this violation is detected for the first time during the calendar year, a fine of 2,000 manats will be imposed; for the second time, the fine will be 4,000 manats; and for three or more times, the fine will be 6,000 manats.
For reference, Article 58.15-2 of the Tax Code will come into effect nine months after the adoption of the Law of the Republic of Azerbaijan on December 16, 2024, "On Amendments to the Tax Code of the Republic of Azerbaijan."
- Submit information to the tax authorities about taxpayers who have terminated their lease agreements and are no longer operating at the leased property, as well as those who continue to operate (a special form will be approved for this purpose) by the 20th of the following month after the end of each quarter.
Additionally, failure to submit this information to the tax authorities in a timely manner will result in a financial sanction of 1,000 manats for market owners (or managers) under Article 57.3 of the Tax Code.
Furthermore, market owners (or managers), as well as lessees who use the property for business purposes, must display information (a certificate) about the registration of the property with the tax authorities (indicating the taxpayer's name and TIN) at the entrance of the property.
At the same time, under the amendment to Article 58.2-1 of the Tax Code, a financial sanction of 40 manats will be applied to micro-enterprises, non-commercial organizations, and individuals engaged in non-commercial activities if they fail to display this information (certificate). For other individuals, the fine will be 400 manats.