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What is the penalty if a person engaged in tutoring activities does not register for tax purposes?
What is the penalty if a person engaged in tutoring activities does not register for tax purposes?
If an individual engaged in private tutoring activities operates without being registered for tax purposes, what tax obligations arise for that person under the legislation? What administrative measures and penalties are applied in this case?
According to the State Tax Service under the Ministry of Economy, the activity mentioned in the inquiry is considered entrepreneurial activity. Pursuant to Article 33.4 of the Tax Code, an individual carrying out entrepreneurial activity without establishing a legal entity must, before starting such activity, apply to the tax authority for registration (obtain a TIN) and pay taxes on the income earned to the state budget.
According to Article 58.2 of the Tax Code, a financial sanction of 200 manats is imposed for failure to submit an application for registration with the tax authority. In addition, if the taxpayer does not maintain accounting records or does not maintain them in accordance with established rules, or if the taxable object cannot be determined for other reasons, the tax authorities have the right to calculate the amount of tax payable based on available data in accordance with Article 67 of the Tax Code.
It was also noted that, depending on the amount of income obtained from conducting entrepreneurial activity without proper tax registration as established by the legislation of the Republic of Azerbaijan, the individual may be held administratively or criminally liable under Article 398 of the Code of Administrative Offences or Article 192 of the Criminal Code, respectively.
Basis: Articles 33.4, 58.2, and 67 of the Tax Code, Article 398 of the Code of Administrative Offences, and Article 192 of the Criminal Code.
If an individual engaged in private tutoring activities operates without being registered for tax purposes, what tax obligations arise for that person under the legislation? What administrative measures and penalties are applied in this case?
According to the State Tax Service under the Ministry of Economy, the activity mentioned in the inquiry is considered entrepreneurial activity. Pursuant to Article 33.4 of the Tax Code, an individual carrying out entrepreneurial activity without establishing a legal entity must, before starting such activity, apply to the tax authority for registration (obtain a TIN) and pay taxes on the income earned to the state budget.
According to Article 58.2 of the Tax Code, a financial sanction of 200 manats is imposed for failure to submit an application for registration with the tax authority. In addition, if the taxpayer does not maintain accounting records or does not maintain them in accordance with established rules, or if the taxable object cannot be determined for other reasons, the tax authorities have the right to calculate the amount of tax payable based on available data in accordance with Article 67 of the Tax Code.
It was also noted that, depending on the amount of income obtained from conducting entrepreneurial activity without proper tax registration as established by the legislation of the Republic of Azerbaijan, the individual may be held administratively or criminally liable under Article 398 of the Code of Administrative Offences or Article 192 of the Criminal Code, respectively.
Basis: Articles 33.4, 58.2, and 67 of the Tax Code, Article 398 of the Code of Administrative Offences, and Article 192 of the Criminal Code.