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Property tax and reporting rules for legal entities
Property tax and reporting rules for legal entities
We inform you that the object of property tax for a legal entity consists of fixed assets recorded on the balance sheet of the enterprise, i.e., 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.
Land is not depreciated, so it is not considered a fixed asset and does not constitute an object of property taxation.
We also inform you that, according to Article 58.1 of the Tax Code, if the amount of tax (including withholding tax) reported in the declaration is lower than the amount that should have been reported, or if the tax due to the budget has been evaded by failing to submit the declaration, a financial penalty equal to 50% of the underpaid or evaded tax (except in cases specified in Article 58.1-1 of the Tax Code and except for additional tax calculated as a result of a desk audit) is applied to the taxpayer.
We further inform you that, according to Article 72.5 of the Tax Code, except for cases provided for in Article 163 of this Code, if the information in the reports submitted for previous reporting periods does not match the data in the primary accounting documents, the taxpayer must submit an amended report for the respective period. If the tax amount under the amended report exceeds the tax amount under the previously submitted report, the additional calculated tax, together with interest, must be paid to the budget; if it is less, the calculated tax and interest amounts are reduced. Amended or late-submitted reports can be submitted up until the day a field tax audit begins at the taxpayer’s premises.
We inform you that the object of property tax for a legal entity consists of fixed assets recorded on the balance sheet of the enterprise, i.e., 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.
Land is not depreciated, so it is not considered a fixed asset and does not constitute an object of property taxation.
We also inform you that, according to Article 58.1 of the Tax Code, if the amount of tax (including withholding tax) reported in the declaration is lower than the amount that should have been reported, or if the tax due to the budget has been evaded by failing to submit the declaration, a financial penalty equal to 50% of the underpaid or evaded tax (except in cases specified in Article 58.1-1 of the Tax Code and except for additional tax calculated as a result of a desk audit) is applied to the taxpayer.
We further inform you that, according to Article 72.5 of the Tax Code, except for cases provided for in Article 163 of this Code, if the information in the reports submitted for previous reporting periods does not match the data in the primary accounting documents, the taxpayer must submit an amended report for the respective period. If the tax amount under the amended report exceeds the tax amount under the previously submitted report, the additional calculated tax, together with interest, must be paid to the budget; if it is less, the calculated tax and interest amounts are reduced. Amended or late-submitted reports can be submitted up until the day a field tax audit begins at the taxpayer’s premises.