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Rules on property tax, tax penalties, and submission of revised declarations
Rules on property tax, tax penalties, and submission of revised declarations
We hereby inform you that the taxable base for the property tax of a legal entity consists of fixed assets recorded on the company’s balance sheet, specifically 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 form part of the taxable base for property tax.
We further inform you that, according to Article 58.1 of the Tax Code, if the amount of tax (including withholding tax) reported in the tax return is understated in comparison with the amount that should have been declared, or if the tax payable to the budget has been evaded by failure to submit the return, a financial sanction amounting to 50% of the understated or evaded tax (excluding additional tax assessed as a result of a desk audit) shall be applied to the taxpayer, except for the case provided for in Article 58.1-1 of the Code.
Please also be informed that, in accordance with Article 72.5 of the Tax Code, except for the cases specified in Article 163, if the data reported in previously submitted returns do not match the data in primary accounting documents, the taxpayer must submit an amended (revised) tax return for the relevant reporting period. If the amount of tax payable to the budget in the revised return exceeds the amount declared in the original return, the additional tax, together with accrued interest, must be paid to the budget. If the amount is less, the tax and interest amounts are reduced accordingly. The amended or overdue returns may be submitted by the taxpayer up to the date when a field tax audit begins.
We hereby inform you that the taxable base for the property tax of a legal entity consists of fixed assets recorded on the company’s balance sheet, specifically 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 form part of the taxable base for property tax.
We further inform you that, according to Article 58.1 of the Tax Code, if the amount of tax (including withholding tax) reported in the tax return is understated in comparison with the amount that should have been declared, or if the tax payable to the budget has been evaded by failure to submit the return, a financial sanction amounting to 50% of the understated or evaded tax (excluding additional tax assessed as a result of a desk audit) shall be applied to the taxpayer, except for the case provided for in Article 58.1-1 of the Code.
Please also be informed that, in accordance with Article 72.5 of the Tax Code, except for the cases specified in Article 163, if the data reported in previously submitted returns do not match the data in primary accounting documents, the taxpayer must submit an amended (revised) tax return for the relevant reporting period. If the amount of tax payable to the budget in the revised return exceeds the amount declared in the original return, the additional tax, together with accrued interest, must be paid to the budget. If the amount is less, the tax and interest amounts are reduced accordingly. The amended or overdue returns may be submitted by the taxpayer up to the date when a field tax audit begins.