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How much social contribution must be paid for a land share?
How much social contribution must be paid for a land share?
I own a land share and have an active TIN (VÖEN). If the TIN remains active, what kind of tax liability may arise and in what amount? What taxes must I pay for using the land share?
According to the State Tax Service of Azerbaijan under the Ministry of Economy of Azerbaijan, pursuant to Article 14 of the Law “On Social Insurance,” individuals who use agricultural land suitable for farming that they own (except those employed in other sectors and paying mandatory state social insurance contributions), as well as each able-bodied member of family peasant farms (excluding persons with disabilities determined due to 61–100% impairment of bodily functions and children with disabilities, from the age of 15 up to the retirement age established by Article 7 of the Law of the Republic of Azerbaijan “On Labor Pensions”), must pay mandatory state social insurance contributions depending on the land area, calculated as a percentage of the minimum monthly wage:
up to 5 hectares — 5%;
from 5 to 10 hectares — 7.5%;
over 10 hectares — 12.5%.
If an individual does not use their land share, no obligation to pay social insurance contributions arises. In this case, a confirmation certificate on non-use of the land must be obtained from the relevant authority (municipality or local executive authority) and submitted to the tax authority.
Social insurance contributions are paid when obtaining the receipt titled “On payment of the fixed amount under simplified tax, mandatory state social insurance and compulsory medical insurance contributions.” Submission of declarations (reports) for this activity is not required.
I own a land share and have an active TIN (VÖEN). If the TIN remains active, what kind of tax liability may arise and in what amount? What taxes must I pay for using the land share?
According to the State Tax Service of Azerbaijan under the Ministry of Economy of Azerbaijan, pursuant to Article 14 of the Law “On Social Insurance,” individuals who use agricultural land suitable for farming that they own (except those employed in other sectors and paying mandatory state social insurance contributions), as well as each able-bodied member of family peasant farms (excluding persons with disabilities determined due to 61–100% impairment of bodily functions and children with disabilities, from the age of 15 up to the retirement age established by Article 7 of the Law of the Republic of Azerbaijan “On Labor Pensions”), must pay mandatory state social insurance contributions depending on the land area, calculated as a percentage of the minimum monthly wage:
up to 5 hectares — 5%;
from 5 to 10 hectares — 7.5%;
over 10 hectares — 12.5%.
If an individual does not use their land share, no obligation to pay social insurance contributions arises. In this case, a confirmation certificate on non-use of the land must be obtained from the relevant authority (municipality or local executive authority) and submitted to the tax authority.
Social insurance contributions are paid when obtaining the receipt titled “On payment of the fixed amount under simplified tax, mandatory state social insurance and compulsory medical insurance contributions.” Submission of declarations (reports) for this activity is not required.