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Is it possible to make the payment in cash when purchasing real estate?
Is it possible to make the payment in cash when purchasing real estate?
As an LLC, we intend to purchase an office building. My first question is whether we can make the payment to the property owner in cash. My second question is, if we withdraw 100,000 manats in cash from our bank account, what is the amount of tax liability?
The State Tax Service under the Ministry of Economy has stated that, according to Article 3.3 of the Law “On Cashless Settlements” and taking into account the provisions of Article 3.5 of the same Law, tax payments exceeding a total of 30,000 manats within a calendar month by VAT-registered taxpayers and taxpayers engaged in public catering activities with taxable operations exceeding 200,000 manats in any month(s) of a consecutive 12-month period must be carried out exclusively in a cashless form. For other taxpayers, this limit is set at 15,000 manats per month.
It was also noted that VAT-registered taxpayers and taxpayers engaged in public catering with taxable operations exceeding 200,000 manats must make payments only in a cashless form if, within a calendar month, the total payments exceed 2% of the turnover (including VAT) of goods, works, and services supplied in the previous calendar month. For other taxpayers, payments exceeding 15,000 manats per month must likewise be carried out only in a cashless form.
According to the amendment to the Law, if 2% of the turnover (including VAT) of goods, works, and services supplied in the previous calendar month is less than 30,000 manats, then payments exceeding 30,000 manats during the current month must be made in a cashless form. If this figure exceeds 50,000 manats, then payments exceeding 50,000 manats within the month must be made only in a cashless form.
Additionally, it was clarified that when legal entities and individual entrepreneurs withdraw cash from their bank accounts, banks apply a simplified tax at the rate of 1% on each withdrawal amount.
As an LLC, we intend to purchase an office building. My first question is whether we can make the payment to the property owner in cash. My second question is, if we withdraw 100,000 manats in cash from our bank account, what is the amount of tax liability?
The State Tax Service under the Ministry of Economy has stated that, according to Article 3.3 of the Law “On Cashless Settlements” and taking into account the provisions of Article 3.5 of the same Law, tax payments exceeding a total of 30,000 manats within a calendar month by VAT-registered taxpayers and taxpayers engaged in public catering activities with taxable operations exceeding 200,000 manats in any month(s) of a consecutive 12-month period must be carried out exclusively in a cashless form. For other taxpayers, this limit is set at 15,000 manats per month.
It was also noted that VAT-registered taxpayers and taxpayers engaged in public catering with taxable operations exceeding 200,000 manats must make payments only in a cashless form if, within a calendar month, the total payments exceed 2% of the turnover (including VAT) of goods, works, and services supplied in the previous calendar month. For other taxpayers, payments exceeding 15,000 manats per month must likewise be carried out only in a cashless form.
According to the amendment to the Law, if 2% of the turnover (including VAT) of goods, works, and services supplied in the previous calendar month is less than 30,000 manats, then payments exceeding 30,000 manats during the current month must be made in a cashless form. If this figure exceeds 50,000 manats, then payments exceeding 50,000 manats within the month must be made only in a cashless form.
Additionally, it was clarified that when legal entities and individual entrepreneurs withdraw cash from their bank accounts, banks apply a simplified tax at the rate of 1% on each withdrawal amount.