en
What taxes must a person engaged in the sale of gold pay?
What taxes must a person engaged in the sale of gold pay?
Since the sale of gold, jewelry, and diamonds is considered a business activity, an individual must register with the tax authorities and obtain a Tax Identification Number (TIN/VÖEN) before commencing such activity. Tax registration is carried out in accordance with Article 33.4 of the Tax Code.
A special tax regime applies to persons engaged in the sale of gold and other jewelry products. Under Article 218.5.11 of the Tax Code, individuals engaged in the sale of gold, jewelry and household items made from gold, as well as diamonds, are not eligible to be taxpayers under the simplified tax system. Therefore, they must operate as income tax taxpayers.
When calculating income tax, documented expenses directly related to earning the income are deducted from the sales revenue, and the remaining profit is taxed at a rate of 20%.
If the entrepreneur qualifies as a micro-business entity, meaning that the average number of employees is between 1 and 10 and annual income does not exceed 200,000 manats, they may benefit from a 75% income tax exemption, provided that proper income and expense records are maintained.
In addition, depending on the scale of the activity and the requirements of the legislation, VAT registration obligations may also arise. Therefore, tax liabilities are determined based on the chosen tax regime and the nature of the business activity.
Legal basis: Articles 33.4 and 218.5.11 of the Tax Code.
Since the sale of gold, jewelry, and diamonds is considered a business activity, an individual must register with the tax authorities and obtain a Tax Identification Number (TIN/VÖEN) before commencing such activity. Tax registration is carried out in accordance with Article 33.4 of the Tax Code.
A special tax regime applies to persons engaged in the sale of gold and other jewelry products. Under Article 218.5.11 of the Tax Code, individuals engaged in the sale of gold, jewelry and household items made from gold, as well as diamonds, are not eligible to be taxpayers under the simplified tax system. Therefore, they must operate as income tax taxpayers.
When calculating income tax, documented expenses directly related to earning the income are deducted from the sales revenue, and the remaining profit is taxed at a rate of 20%.
If the entrepreneur qualifies as a micro-business entity, meaning that the average number of employees is between 1 and 10 and annual income does not exceed 200,000 manats, they may benefit from a 75% income tax exemption, provided that proper income and expense records are maintained.
In addition, depending on the scale of the activity and the requirements of the legislation, VAT registration obligations may also arise. Therefore, tax liabilities are determined based on the chosen tax regime and the nature of the business activity.
Legal basis: Articles 33.4 and 218.5.11 of the Tax Code.