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How are the incomes obtained from other services recorded for a taxpayer who has obtained a “Distinctive Mark”?
How are the incomes obtained from other services recorded for a taxpayer who has obtained a “Distinctive Mark”?
The taxpayer carries out dual activities: on the one hand, transporting the employees of a company using their own bus (by obtaining a “Distinctive Mark”), and on the other hand, providing services to other individuals. A corporate income tax return has been submitted for the services provided. In this case, should the turnover for which the “Distinctive Mark” was obtained be reported again in the corporate income tax period, or, if separate accounting is maintained, is the invoice related to passenger transportation—taking into account the “Distinctive Mark”—not included again in the corporate income tax turnover?
The State Tax Service under the Ministry of Economy has stated that, in accordance with Article 218.4.1 of the Tax Code, individuals who carry out passenger transportation, including taxi services (excluding international cargo and passenger transportation), within the territory of the Republic of Azerbaijan using vehicles owned or used by them, are payers of simplified tax. Tax obligations related to this activity are fulfilled in the manner prescribed by the Tax Code by obtaining a “Distinctive Mark.” The “Distinctive Mark” must be obtained electronically via the AYNA information system of the Ministry of Digital Development and Transport of the Republic of Azerbaijan for each motor vehicle by the end of the calendar month, at the taxpayer’s discretion, for the following month, quarter, half-year, or year.
According to Article 221.6 of the Tax Code, the persons specified in Article 218.4 keep separate records of income and expenses for each type of activity. The profit (loss) obtained from these activities is not attributed to the profit (loss) obtained from other types of activities.
The taxpayer carries out dual activities: on the one hand, transporting the employees of a company using their own bus (by obtaining a “Distinctive Mark”), and on the other hand, providing services to other individuals. A corporate income tax return has been submitted for the services provided. In this case, should the turnover for which the “Distinctive Mark” was obtained be reported again in the corporate income tax period, or, if separate accounting is maintained, is the invoice related to passenger transportation—taking into account the “Distinctive Mark”—not included again in the corporate income tax turnover?
The State Tax Service under the Ministry of Economy has stated that, in accordance with Article 218.4.1 of the Tax Code, individuals who carry out passenger transportation, including taxi services (excluding international cargo and passenger transportation), within the territory of the Republic of Azerbaijan using vehicles owned or used by them, are payers of simplified tax. Tax obligations related to this activity are fulfilled in the manner prescribed by the Tax Code by obtaining a “Distinctive Mark.” The “Distinctive Mark” must be obtained electronically via the AYNA information system of the Ministry of Digital Development and Transport of the Republic of Azerbaijan for each motor vehicle by the end of the calendar month, at the taxpayer’s discretion, for the following month, quarter, half-year, or year.
According to Article 221.6 of the Tax Code, the persons specified in Article 218.4 keep separate records of income and expenses for each type of activity. The profit (loss) obtained from these activities is not attributed to the profit (loss) obtained from other types of activities.