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How is the object of taxation determined?
How is the object of taxation determined?
According to Article 12.3 of the Tax Code, the object of taxation includes income, profit, property, land, mineral resources, the value added to supplied goods (works, services), trade markup, or other taxable items as defined by this Code. The topic is commented on by expert Mirjafar Rzayev.
According to Article 219.1 of the Tax Code, the object of taxation is the total revenue obtained by the taxpayer during the reporting period from supplied goods (works, services) and property, as well as non-sales income (excluding income taxed at the source of payment).
Example: “AA” LLC is a simplified tax payer and operates in the public catering sector in Baku. The company’s sales for the first quarter of 2025 were as follows:
• January – 6,000 manats;
• February – 4,000 manats;
• March – 8,000 manats.
Total sales for the quarter amounted to 18,000 manats.
Out of this amount, only 15,000 manats were actually paid by customers during the quarter. Since Article 219.1 of the Tax Code refers to the revenue received, the simplified tax amount will be calculated as follows:
15,000 × 2% = 300 manats.
The remaining 3,000 manats will be taxed in the quarter in which it is paid by the customers to “AA” LLC.
According to Article 12.3 of the Tax Code, the object of taxation includes income, profit, property, land, mineral resources, the value added to supplied goods (works, services), trade markup, or other taxable items as defined by this Code. The topic is commented on by expert Mirjafar Rzayev.
According to Article 219.1 of the Tax Code, the object of taxation is the total revenue obtained by the taxpayer during the reporting period from supplied goods (works, services) and property, as well as non-sales income (excluding income taxed at the source of payment).
Example: “AA” LLC is a simplified tax payer and operates in the public catering sector in Baku. The company’s sales for the first quarter of 2025 were as follows:
• January – 6,000 manats;
• February – 4,000 manats;
• March – 8,000 manats.
Total sales for the quarter amounted to 18,000 manats.
Out of this amount, only 15,000 manats were actually paid by customers during the quarter. Since Article 219.1 of the Tax Code refers to the revenue received, the simplified tax amount will be calculated as follows:
15,000 × 2% = 300 manats.
The remaining 3,000 manats will be taxed in the quarter in which it is paid by the customers to “AA” LLC.