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Obligations of a taxpayer who has temporarily suspended their activity
Obligations of a taxpayer who has temporarily suspended their activity
I would like to know whether a taxpayer is required to submit a quarterly report before temporarily suspending their activity, or if the declaration should be submitted after the suspension takes effect?
According to the information provided by the State Tax Service under the Ministry of Economy, the procedures for deregistration from tax records and temporary suspension of activity by a taxpayer are different.
A taxpayer wishing to temporarily suspend their activity must submit a document titled “Notification on the Suspension of Activity of the Taxpayer, its Branch, Representative Office, or Other Business Entity (Facility) and Other Taxable Operations.” This notification must indicate the duration of the suspension of entrepreneurial activity or other taxable operations. If, after the expiration of this period, no further application is submitted for extension, the taxpayer's activity will automatically be considered resumed starting from the day following the end date specified in the initial notification. From that moment, the obligation to submit relevant tax declarations to the tax authority arises.
Detailed information about the procedures to be followed in relation to the termination of a natural person's tax registration can be found in the relevant section of the State Tax Service's official website. If the taxpayer has an enhanced electronic signature (including Asan Imza), the termination of an individual’s activity can be carried out online via the Internet Tax Office portal.
In response to the inquiry, it has been clarified that when a taxpayer ceases activity within the Republic of Azerbaijan, or when an individual taxpayer terminates their business activity, they are required to submit a tax declaration to the relevant tax authority within 30 days. For the purpose of this requirement, the reporting period covers the time from the beginning of the tax year until the date the activity is suspended or terminated.
Additionally, taxpayers are required to submit the “Declaration on Taxes Withheld at the Source of Payment for Salaried Work, Mandatory State Social Insurance, Unemployment Insurance, and Compulsory Health Insurance Contributions” to the tax authority they are registered with, no later than the 20th day of the month following the end of the quarter.
I would like to know whether a taxpayer is required to submit a quarterly report before temporarily suspending their activity, or if the declaration should be submitted after the suspension takes effect?
According to the information provided by the State Tax Service under the Ministry of Economy, the procedures for deregistration from tax records and temporary suspension of activity by a taxpayer are different.
A taxpayer wishing to temporarily suspend their activity must submit a document titled “Notification on the Suspension of Activity of the Taxpayer, its Branch, Representative Office, or Other Business Entity (Facility) and Other Taxable Operations.” This notification must indicate the duration of the suspension of entrepreneurial activity or other taxable operations. If, after the expiration of this period, no further application is submitted for extension, the taxpayer's activity will automatically be considered resumed starting from the day following the end date specified in the initial notification. From that moment, the obligation to submit relevant tax declarations to the tax authority arises.
Detailed information about the procedures to be followed in relation to the termination of a natural person's tax registration can be found in the relevant section of the State Tax Service's official website. If the taxpayer has an enhanced electronic signature (including Asan Imza), the termination of an individual’s activity can be carried out online via the Internet Tax Office portal.
In response to the inquiry, it has been clarified that when a taxpayer ceases activity within the Republic of Azerbaijan, or when an individual taxpayer terminates their business activity, they are required to submit a tax declaration to the relevant tax authority within 30 days. For the purpose of this requirement, the reporting period covers the time from the beginning of the tax year until the date the activity is suspended or terminated.
Additionally, taxpayers are required to submit the “Declaration on Taxes Withheld at the Source of Payment for Salaried Work, Mandatory State Social Insurance, Unemployment Insurance, and Compulsory Health Insurance Contributions” to the tax authority they are registered with, no later than the 20th day of the month following the end of the quarter.