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Simplifications for taxpayers – online reporting and attachments
Simplifications for taxpayers – online reporting and attachments
The improvement and simplification of declaration and reporting forms, enhancing taxpayer satisfaction, and increasing the efficiency of tax administration are among the primary objectives of tax authorities. In the meetings of the "Tax and Accountability" Working Group, led by the State Tax Service under the Ministry of Economy, discussions were held with private sector representatives regarding the "Taxation" indicator. These discussions, along with the analysis of documents submitted by taxpayers, identified the need for enhancements and simplifications in the preparation of the "Unified Declaration (Report) on Withholding from Wage Employment."
In this regard, by the relevant order of the State Tax Service, the "Unified Declaration (Report) on Withholding from Wage Employment," its annexes, and the procedures for their preparation have been approved in a new edition. Experts believe that this innovation has eased the workload of taxpayers.
Head of the State Tax Service, Radil Fətullayev, stated that several reports have been transitioned to an online format to ensure the convenience of entrepreneurs. He emphasized that the State Tax Service regularly improves tax declarations based on suggestions and complaints from taxpayers, implementing various simplifications. Currently, a significant portion of declarations—such as simplified tax, withholding tax, profit tax, and VAT declarations—have been moved online, with work on the profit tax declaration also completed. The innovation in the VAT declaration has initially been applied to taxpayers operating in the regions.
Additionally, improvements have been made to existing online reporting forms. One such improvement is the "Unified Declaration (Report) on Withholding from Wage Employment," which combines the report sent to the State Social Protection Fund and the tax report submitted to the tax authority into a single quarterly declaration form. This combined form was introduced a few years ago and has been continuously improved to simplify the process for taxpayers. Currently, further enhancements are underway.
According to the new rules, certain simplifications are planned for the unified quarterly declaration. As with other reports, the declaration form will be regulated through annexes. For example, in the property tax declaration, data was previously entered, and then annexes were filled out. Under the new system, when an annex is filled out, the main declaration is automatically generated. This format significantly facilitates the work of taxpayers, and the same approach will be applied here.
Fətullayev further noted that four annexes have been added to the "Unified Declaration (Report) on Withholding from Wage Employment." Annex 1 contains information about employees, which, when entered, automatically generates the declaration. Annex 2 is for information about foreign employees. Annex 3 addresses issues related to life insurance savings, which previously posed challenges for taxpayers. The new format of Annex 3 simplifies the process, allowing taxpayers to provide all information related to life insurance savings online. Annex 4 contains information about employees not subject to mandatory state social insurance and their income. These four annexes will facilitate the preparation of the report in a short time.
It should be noted that Namig Dərgahov, Deputy Head of the Department for Economic Analysis and Monitoring of the Implementation of Forecasts under the State Tax Service, previously stated that efforts would be made in the second half of this year to optimize and simplify the preparation time and administrative burden of the "Unified Declaration (Report) on Withholding from Wage Employment." He mentioned that the State Tax Service is working in collaboration with the Ministry of Labor and Social Protection of the Population in this direction. After the changes, the declaration will no longer require the inclusion of the employer's registration number (SUN) and the insured person's social insurance number (SSN). Additionally, the requirement to record income not subject to income tax and insurance contributions in the declaration by FIN will be eliminated.
The improvement and simplification of declaration and reporting forms, enhancing taxpayer satisfaction, and increasing the efficiency of tax administration are among the primary objectives of tax authorities. In the meetings of the "Tax and Accountability" Working Group, led by the State Tax Service under the Ministry of Economy, discussions were held with private sector representatives regarding the "Taxation" indicator. These discussions, along with the analysis of documents submitted by taxpayers, identified the need for enhancements and simplifications in the preparation of the "Unified Declaration (Report) on Withholding from Wage Employment."
In this regard, by the relevant order of the State Tax Service, the "Unified Declaration (Report) on Withholding from Wage Employment," its annexes, and the procedures for their preparation have been approved in a new edition. Experts believe that this innovation has eased the workload of taxpayers.
Head of the State Tax Service, Radil Fətullayev, stated that several reports have been transitioned to an online format to ensure the convenience of entrepreneurs. He emphasized that the State Tax Service regularly improves tax declarations based on suggestions and complaints from taxpayers, implementing various simplifications. Currently, a significant portion of declarations—such as simplified tax, withholding tax, profit tax, and VAT declarations—have been moved online, with work on the profit tax declaration also completed. The innovation in the VAT declaration has initially been applied to taxpayers operating in the regions.
Additionally, improvements have been made to existing online reporting forms. One such improvement is the "Unified Declaration (Report) on Withholding from Wage Employment," which combines the report sent to the State Social Protection Fund and the tax report submitted to the tax authority into a single quarterly declaration form. This combined form was introduced a few years ago and has been continuously improved to simplify the process for taxpayers. Currently, further enhancements are underway.
According to the new rules, certain simplifications are planned for the unified quarterly declaration. As with other reports, the declaration form will be regulated through annexes. For example, in the property tax declaration, data was previously entered, and then annexes were filled out. Under the new system, when an annex is filled out, the main declaration is automatically generated. This format significantly facilitates the work of taxpayers, and the same approach will be applied here.
Fətullayev further noted that four annexes have been added to the "Unified Declaration (Report) on Withholding from Wage Employment." Annex 1 contains information about employees, which, when entered, automatically generates the declaration. Annex 2 is for information about foreign employees. Annex 3 addresses issues related to life insurance savings, which previously posed challenges for taxpayers. The new format of Annex 3 simplifies the process, allowing taxpayers to provide all information related to life insurance savings online. Annex 4 contains information about employees not subject to mandatory state social insurance and their income. These four annexes will facilitate the preparation of the report in a short time.
It should be noted that Namig Dərgahov, Deputy Head of the Department for Economic Analysis and Monitoring of the Implementation of Forecasts under the State Tax Service, previously stated that efforts would be made in the second half of this year to optimize and simplify the preparation time and administrative burden of the "Unified Declaration (Report) on Withholding from Wage Employment." He mentioned that the State Tax Service is working in collaboration with the Ministry of Labor and Social Protection of the Population in this direction. After the changes, the declaration will no longer require the inclusion of the employer's registration number (SUN) and the insured person's social insurance number (SSN). Additionally, the requirement to record income not subject to income tax and insurance contributions in the declaration by FIN will be eliminated.