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Taxable base of property tax and penalties
Taxable base of property tax and penalties
We hereby inform you that the taxable object for property tax of a legal entity consists of fixed assets recorded on the company's balance sheet — that is, tangible assets with a useful life of more than one year and a value exceeding 500 manats, which are subject to depreciation in accordance with Article 114 of the Tax Code.
Since land is not subject to depreciation, it is not classified as a fixed asset and therefore does not constitute a taxable object for property tax purposes.
We also inform you that, according to Article 58.1 of the Tax Code, if the amount of tax (including tax withheld at source) indicated in the tax report is lower than the amount that should have been declared, or if the tax payable to the state budget is evaded by not submitting a report, the taxpayer (except in cases provided for under Article 58.1-1 of the Code) shall be subject to a financial sanction amounting to 50% of the underreported or evaded tax (excluding additional tax assessed as a result of a desk audit).
Please also note that under Article 72.5 of the Tax Code, unless the exceptions provided in Article 163 apply, if the information provided in previously submitted reports for prior reporting periods does not match the data in the primary accounting documents, the taxpayer must submit an amended report for the relevant reporting period. If the tax payable under the amended report exceeds the amount previously reported, the additional tax along with interest must be paid to the budget. If the amount is lower, the previously assessed tax and interest amounts are reduced accordingly. Amended or overdue reports may be submitted by the taxpayer up until the commencement date of a field tax audit.
We hereby inform you that the taxable object for property tax of a legal entity consists of fixed assets recorded on the company's balance sheet — that is, tangible assets with a useful life of more than one year and a value exceeding 500 manats, which are subject to depreciation in accordance with Article 114 of the Tax Code.
Since land is not subject to depreciation, it is not classified as a fixed asset and therefore does not constitute a taxable object for property tax purposes.
We also inform you that, according to Article 58.1 of the Tax Code, if the amount of tax (including tax withheld at source) indicated in the tax report is lower than the amount that should have been declared, or if the tax payable to the state budget is evaded by not submitting a report, the taxpayer (except in cases provided for under Article 58.1-1 of the Code) shall be subject to a financial sanction amounting to 50% of the underreported or evaded tax (excluding additional tax assessed as a result of a desk audit).
Please also note that under Article 72.5 of the Tax Code, unless the exceptions provided in Article 163 apply, if the information provided in previously submitted reports for prior reporting periods does not match the data in the primary accounting documents, the taxpayer must submit an amended report for the relevant reporting period. If the tax payable under the amended report exceeds the amount previously reported, the additional tax along with interest must be paid to the budget. If the amount is lower, the previously assessed tax and interest amounts are reduced accordingly. Amended or overdue reports may be submitted by the taxpayer up until the commencement date of a field tax audit.