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Taxation rules based on types of activity
Taxation rules based on types of activity
We inform you that according to Article 221.7 of the Tax Code, individuals who earn income from renting property and royalties, and are simultaneously engaged in other types of activities, have the right to apply the simplified tax regime to the income obtained from those other activities, taking into account the provisions of Articles 218.1, 218.2, and 218.3 of the Code.
For individuals providing both public catering and software services, the application of income tax to earnings from software services and the application of the simplified tax to earnings from catering activities is not stipulated in the tax legislation.
Accordingly, the taxpayer must operate as a payer of income tax for both types of activity and calculate and pay the income tax to the state budget after deducting expenses related to generating those incomes.
In addition, a taxpayer whose volume of taxable transactions within entrepreneurial activity exceeds 200,000 AZN in any month(s) within a consecutive 12-month period (except for individuals providing property rental services of residential or non-residential premises, those engaged in transportation services within the territory of the Republic of Azerbaijan by motor vehicles, or participating in the organization of sports betting) must submit an application for VAT registration within 10 days of the following month. After being registered for VAT by the tax authority, the taxpayer must fulfill their VAT obligations.
We inform you that according to Article 221.7 of the Tax Code, individuals who earn income from renting property and royalties, and are simultaneously engaged in other types of activities, have the right to apply the simplified tax regime to the income obtained from those other activities, taking into account the provisions of Articles 218.1, 218.2, and 218.3 of the Code.
For individuals providing both public catering and software services, the application of income tax to earnings from software services and the application of the simplified tax to earnings from catering activities is not stipulated in the tax legislation.
Accordingly, the taxpayer must operate as a payer of income tax for both types of activity and calculate and pay the income tax to the state budget after deducting expenses related to generating those incomes.
In addition, a taxpayer whose volume of taxable transactions within entrepreneurial activity exceeds 200,000 AZN in any month(s) within a consecutive 12-month period (except for individuals providing property rental services of residential or non-residential premises, those engaged in transportation services within the territory of the Republic of Azerbaijan by motor vehicles, or participating in the organization of sports betting) must submit an application for VAT registration within 10 days of the following month. After being registered for VAT by the tax authority, the taxpayer must fulfill their VAT obligations.